I know that web traffic analysis is a very boring topic and more importantly: If you want to grow an online business, then the conventional wisdom is to market your site and thus get more traffic to it. So that means, in most cases, plopping down some money on one of these Internet Marketing services:
- PPC Advertising (Google Adwords, Facebook, LinkedIn, etc.)
- SEO & SEM
- Social Media Marketing
- Content Marketing
- Mobile Marketing
I don’t care which you choose, the underlying premise is that you fork over more money to generate more traffic and thus boost sales/conversions. That means that every additional sale comes with increased marketing costs which absolutely devour your online profits. In fact, most of these methods produce such hideous or non-existent ROI that the only way you can actually make any money is with repeat purchases, continuity billing, or possibly selling your marketing list.
Yep, the slick-talking Internet Marketing experts are going to swear up and down that the only way to increase your online sales is to increase your traffic—which, by the way, means you need to hire them.
But They’re Wrong Because You Can Generate More Online Sales Out of Your Existing Traffic.
Let’s say your online marketing budget is $5k a month and it generates roughly $10k a month in total revenue. That’s optimistic and after marketing and overhead you might be looking at $2-3k a month in actual profit—but let’s roll with it. Now let’s say that same 5k investment could generate 50% more sales, or $15k a month. That’s $5k in additional revenue each month with zero increase to your marketing budget meaning after your overhead, most of those new sales are sheer profit.
How is this possible you ask?
The answer is web traffic analysis. You see, your website isn’t converting at it’s full potential, not by a long shot. Think I’m joking or off base? Well, just see for yourself.
Google Adwords Performance Grader tracks the average conversion rate for all major online industry niches. Now in truth, your conversion rate should be significantly higher than those reported in Performance Grader because they are only looking at PPC traffic. But your site should have multiple traffic sources and if your keyword research is spot on, that means you should have a higher conversion rate than could be generated from PPC traffic alone.
So how does your site stack up? If you are like most of our clients, you are lucky if your conversion rate is even ½ of the industry standard. Translation: You are leaving loads of conversions and/or sales on the table every month.
Even worse: You are also wasting loads of your marketing budget sending traffic to a site that isn’t converting prospects up to its full potential. So if your site is underperforming by 50%, that also means that up to 50% of your marketing budget is completely wasted. In other words: If you fixed the conversion problems on your website, then you could decrease your marketing budget by 50% and generate the same number of conversions.
Just imagine what generating the same number of conversions each month but only spending ½ of your current marketing budget would do for your overall online profits. That, is the power of web traffic analysis and how it can literally be a game-changing investment for your site.
3 Ways Web traffic analysis Boosts Online Profits
1. Identifies Conversion Problems Quickly
Many website owners mistakenly assume that a site isn’t converting because of the direct response copywriting on the sales page, product descriptions, etc. While weak copywriting can certainly suppress online conversions and/or sales, there are actually a number of potential culprits, including:
- Confusing or Disorganized Website Navigation
- Poor Website Design/Layout
- Shopping Cart Configuration/Set-Up
- Weak or Missing Credibility Tools
- Slow Load Times and Other Web Programming Problems
- Untargeted Traffic
- Inconsistencies in Your Marketing Funnel
- And Yes, Poor Copywriting
And to make matters worse: You might have dozens or even 100’s of pages on your site and may easily have different problems on each page. So unless you want to spend the next 6-12 months endlessly split-testing or guessing what is causing your conversion problems, web traffic analysis avoids the guesswork and shows you exactly what needs fixed.
It is not uncommon for a number of small issues to add up to a 50% or greater loss in overall conversions. Without web traffic analysis, finding all of these little problems is next to impossible particularly on larger, more complex sites. This is why most people don’t bother and instead just buy or invest in more traffic to grow their sites. If they only knew how much money they were leaving on the table each month, if they only knew…
2. Eliminates Non-Converting Paid Traffic Sources
PPC experts only want you to pay attention to the Cost-Per-Click and raw traffic numbers but what you really need to be paying attention to is the conversion rate for each targeted keyword. After all, you are paying $2, 5, even $25 or more per click so you don’t want to be wasting it on non-converting traffic.
Web traffic analysis tools can help you drill down to the keyword level and track actual conversions for every targeted term. With a large enough sample size (say at least 2,000 or more visitors), you can quickly identify the non-converting terms and eliminate them from your paid traffic campaigns. It is not unusual at all for web traffic analysis to show that 40% or more of all paid traffic is non-converting and a complete waste of the marketing budget. These terms can be removed without affecting conversions so those savings can either be reinvested in other traffic sources or pad the bottom line.
3. Improves ROI on All Future Traffic-Generating Investments
When you use web traffic analysis to find and fix the problems that are suppressing your conversions and/or sales, then all future investments in SEO, PPC, Content Marketing, or any traffic generating service will be more profitable. And these traffic-generating investments will not only be more profitable today, but tomorrow and well into the future as well. In fact:
- All Traffic Sources Should Convert Higher After Conversion Problems Fixed
- Increase in Conversion Rate Should Last for Months, Possibly Years
- Significantly Boosts Overall Online Profits by Reducing Customer Acquisition Costs
But How Exactly Does Web Traffic Analysis Translate Into Higher Conversion and Online Profits?
By itself, web traffic analysis is little more than meaningless statistics. But in the hands of a conversion rate optimization (CRO) expert, website traffic analysis provides the hard data necessary to isolate and fix problems that are suppressing sales. How do they do this? By looking for “statistical anomalies” that tend to indicate a problem that would lower the conversion rate, such as:
- Low Average Time On Site
- Low Average Time on Main Sales/Landing Page(s)
- High Abandonment Rate
- High Bounce Rate for Site or Primary Conversion Content
- Low Percentage of Site Traffic to Primary Conversion Content
- Low Scan Times Over Primary Direct Response Sales Tools
- Weak Engagement Levels on Primary CTA’s
Now granted: Just knowing that you have a high abandonment rate won’t solve anything and it doesn’t necessarily tell you what the actual problem is. However, for a conversion rate optimization expert, a high abandonment indicates the presence of one or more conversion problems, including:
- Conflicting Offer Details in Sales Funnel (displaying one price on one page and another in shopping cart)
- Pricing/Offer Detail Surprises or Unexpected Charges/Conditions
- Configuration Problem in Shopping Cart (not calculating shipping costs accurately, etc.)
- Not Enough Payment Options
- No Credibility Tools/Logos (like BBB, Verisign, etc.)
Once the web traffic analysis indicates a high abandonment rate, a conversion rate optimization expert will know the problem is likely either in the shopping cart or part of the sales funnel. The conversion rate expert will then dig deeper into the analysis and carefully review the shopping cart and sales funnel to find the exact cause of the high abandonment rate and then permanently fix it. And so the process will progress for every statistical anomaly identified in the web traffic analysis until they are all fixed and the conversion rate is permanently increased. Depending on the number of problems identified in the analysis, conversion rate optimization can ultimately boost online sales by up to 100% or more.
Concluding Thoughts on Web Traffic Analysis
Yes, the nerds can indeed use website traffic analysis to find and fix the conversion problems that are costing you sales each month. And depending on the complexity and traffic levels of the site, fixing those conversion problems could boost online sales and profits today and for months or even years into the future. Plus, all future investments in SEO, PPC, Social Media or any traffic generating service will be more profitable and produce more ROI for months, if not years, into the future.
So if you are serious about generating more online sales but are tired of paying for more traffic to do so, check into web traffic analysis and conversion rate optimization first–the “nerds” just might have the key to the higher online profits you’ve been searching for….