Why do we have website? Because we want to generate leads, we want to sell stuff. You are either providing a service or selling a product and you want to do more of it. Before you spend any more money on promoting your website, you need to determine the value of a visitor to your site.
Let’s start at the end and work back.
What is the lifetime value of a customer to you? If you’re providing a service, how much money will a client spend with you over the time that they remain a client? If you’re a plumber how often will you get called back to perform a service? If you provide a monthly service, how long does a client typically stay with you? If you’re selling a product is it a one and done or does the client return to make additional purchases? Come up with a number. I know it won’t be exact but you need a number before proceeding.
How many contacts with prospects did it take to get that client? What is your closing ratio? Determine your contact to contract ratio. A contract is a prospect/contact that has converted into a client/customer.
Okay, we’re getting closer. How many leads does it take to generate a contact? Website visitors may leave their contact information but you may never be able to get in touch with them. If a website visitor calls you and you speak with them, they count as a contact, not a lead. If you’re selling a product, visitors may view your product but not buy. What we’re looking for here is how many leads it takes to generate an opportunity to contact a prospect and make an effort to convert them from a contact to a client.
We have arrived at the front of the process. How many website visitors does it take to generate a lead? Without this information, it’s very difficult to determine whether your website is doing its job. Without this information, spending money to generate more traffic might just be pouring your money down the drain.
Here’s an arbitrary set of numbers to help you to visualize my process.
100 website visitors generate 20 leads which generate 5 contacts which generate 1 sale/client. So in this example, if your lifetime value of a client is $1,000 each visitor to your website is worth $10. Apply your numbers and come up with a website visitor value for yourself.
With this number, you can now determine how much you can afford to generate a lead. Whether that is done using paid advertising or boosting your traffic with SEO Services now you can determine your return on your investment.
So how do you keep track of this?
If your website is selling a product and the entire process takes place on your website, then all of this information could be tracked in Google Analytics. If you’re using your website to generate leads, then it’s the same answer, Google Analytics but…
If you have a lead generation website then you will need to have an additional way of tracking the lead to contract process.
It’s unfortunate but much of Google Analytics is under-utilized and Goals are near the top of the list.
What you need to track is the completion of each step in the process. So starting at the beginning, How many users does it take to generate a lead?
The metric you should be tracking is users, not sessions. If a user comes back to your site multiple times, is will be tracked as multiple sessions but … only as one user. This metric allows you to measure how many unique visitors it takes to generate a lead.
This is done by setting up a goal in Google Analytics to determine how many users get to your contact us page or sales page and complete the process … end up on your thank you page.
Each step in the process needs its own goal. With this setup, you’ll no longer be flushing your money down the drain. Get clear on the value of your website traffic, and you’ll be able to determine your return on your investment.
Here are some additional articles that will help with this process.
What is the Value of a Website Lead Learn how to calculate key metrics like this, plus Customer LTV, Visitor to Lead Conversion rates, and more.
Whether you re collecting leads or selling items online, this overview with formulas will help you calculate your website conversion rate.
Some have speculated that SEO is dead in 2018 The only thing is, those same people have said that since 2012 SEO is more prevalent in 2018 than it has ever been! But that still leaves the argument, is SEO worth it Is SEO worth the time and monetary investment required to move the needle We think so, and here s why.
The Website Marketing Pro is based in Hillsborough, NC. The company has a virtual team located throughout the world with expertise in website marketing, pay per click campaign management, search engine optimization and reputation management.