Why Internet Marketing Works

While I’ve never been much of a numbers guy, I’m amazed about how easy Internet Marketing is because absolutely everything can be measured. So your goal is to figure out what to measure and then measure it.

And the beauty of it is that small changes can reap LARGE effects. Let’s say that you have a paid search campaign. You want people to rent a tuxedo from your store instead of your competitors. You can set up a paid search campaign – such as Google AdWords – to drive traffic to you site. At Google you identify when your ad will appear based on search words. So you say I want the ad to appear when people search for “prom”, “wedding”, “tux”, or “tuxedo”. Easy enough.

Not let’s say you start running this campaign and you find that for every 100 clicks (and you pay for every click) you get three tuxedo rentals. To make this a profitable venture for you, you determine that you need at least 5 rentals for every 100 clicks but you’d much prefer 10 or more.

Now that you have the traffic coming, you need to look at why more folks aren’t converting. With some of the nifty tools Google provides, you can do split testing. So you look at your landing page (the one you direct folks to from Google) and decide to keep the existing page as one version of the test. Then you make a small change – perhaps a differently worded call to action – and set that page as the second version of the test.

Next you turn on the test and then as people click through to your site, you can calculate which call to action is getting more business. Once you’ve got enough data to determine which is better, eliminate the underperformer and use the better one. If you change your conversion rate from 1% of visitors converting to customers to 2%, you’ve doubled your business. Pretty good ROI!

Repetitive Unproductive Practice

Lather, Rinse, Repeat

But don’t stop there.  Like my shampoo bottle says, “Lather, Rinse, Repeat.” If you’ve found that one call to action gets more conversions, what if there is yet another that will triple your conversions? Build another page to test. And often its not the call to action. It could be the image you use or the attention getting headline or the copy leading up to the call to action.

Since you can measure each step of the process, you can measure your ROI at every step and set yourself apart from your competition.

And that is just with Paid Search. The same holds true with Organic Search and even Social Media Marketing.

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