How often do you check your web stats? If it is every day or more than once a day – admit it, at least to yourself. We would not be surprised if an organisation called Google Analytics Addicts Anonymous actually existed rather than just for the purpose of this paragraph. For most small business owners and entrepreneurs it does become a bit of an obsession and not without reason because web traffic is important.
However, we believe the focus should more appropriately be placed on the five business indicators below rather than traffic stats.
1. Web Conversion rate – In simple terms your company’s web conversion rate is the proportion of web visitors who convert into sales. If you had a conversion rate of 30% that would mean that for every 100 visitors 30 go onto to become customers which would be a very good conversion rate; a competitor may have higher traffic but a much lower conversion rate.
2. Basket spend – Customers who have bought from you before or are in the process of buying from you now are more likely to buy from you than ‘new’ customers. Astute business owners therefore create effective cross sell and upsell activities with the objective of raising the average ‘basket spend’ per customer. Click here to read more about great upselling tactics. Basket spend is a very important business indicator.
3. Repeat business – How many of your customers are coming back to you? If you don’t know take some time to work this out. Not only is a validation of the quality of your products or services it directly contributes to the overall health of your business. Consider the difference in outlook and confidence between a company that can expect repeat business of 40% versus one that needs to find completely new customers each year.
4. Your database is the foundation – For many small businesses their database is the foundation of the business. People within your database are higher converting prospects than those who have merely visited your site. Create a coherent email marketing strategy always delivering value and not just sales pitches (that’s the challenge) and your business will benefit directly. If you are not list-building now start as soon as possible.
5. Tech solutions & lower variable costs – Rather than focusing on traffic numbers it is better to concentrate on delivering your services or products to your customers in a more efficient way. If you can find a technological solution to your customers’ problems not only do you reduce your variable costs but you also make your business more scalable.
If you would like us to discuss how you can capitalise on the opportunities your business and sector presents – we would be happy to do so. Feel free to give us a call on +44 (0) 845 226247 or drop us an email via mail@marketingfundamentals.com
We hope you found this information useful.
Kind regards,
Marketing Fundamentals Team
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