Do you agree that you can not improve something or manage it before you actually measure it? If you have your online business and want to develop it, you have to know how to measure your business performance and determine what is working and what is not.
But what are the more effective and painless ways to measure progress without being stuck in the paralysis of over- analysis? This is a skill you need to master to succeed, and here are three ways to do so.
The first key to effective measuring is to know what your average customer is worth at the present time. This can be done by adding up how much you spend on acquiring a customer, and subtracting it from how much you make when they initially become a customer.
Just as an example, lets say you need to pay for 100 hits at 0.60 cents each in order to generate three sales at 55 dollars each. It means each of those customers costs about 20 dollars to generate. Each of those customers is 35 dollars worth.
Then you have to take into consideration the cost of processing the payment and other kinds of overhead. Once you are through with this process, you have a true idea of how much you are making from each customer. Then you are ready to move on to the second principle, which is measuring the lifetime value of each customer.
This process might take some time, but it is absolutely worth it, as in the end you will see if it is easier for you to find new customers, or just increase the lifetime value of clients you already have. If you posses another offers clients can take advantage of, you factor the revenue you get from these products back into the equation.
Imagine you have got 1000 clients in your client list and 100 of them buy your language study package at 100 dollars. This means you add 10 dollars to the value of those clients, and this increases your value to 45 dollars.
Now as you are doing this, you will find that there are other variables involved, but this should give you an idea of the process. Once you know the worth of each customer, you can put together a plan for using the third measurement key. The third key is measuring the buying motivation of your established customers by asking them questions and sending them surveys. This is the most valuable way to measure your marketing process, because it will tell you exactly what to do next.
No matter how great you think your ideas are, in the end of the day only customers will decide what really works. This is the reason why it is better to find it out from them before you even start creating your product. If you understand what is every clients value and know how to make them purchase from you, you can avoid spending a fortune on your marketing and get you business to absolutely different level.
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