Google Analytics for Information Marketers
The last two days I spent with my friend and NEW client, Brian Brunckhorst. Brian is a great guy and makes much of his money from the three laundromats he owns.
I had the opportunity to go on a “service call” with him on Saturday night at around 10PM at one of his places to add quarters to his change machine.
I’m helping Brian to make more money from his information products business. He is creating a series of tools to help people in the coin-op laundry business.
A few things that we talked about have relevance to anyone in the field.
1. Brian is REALLY using Google Analytics to test his sites and optimize his closing ratios on each of his sites.
I suggest you get a Google Adwords account and learn now to use the Google Analytics. You’ll make a lot more money over the long run. Maybe even the short run!
Google allows you to test multiple areas on your site using multiple options in each area. So you can test 4 versions (or more) of your headline at the same time you’re testing 3 versions of your picture, at the same time you’re testing 5 versions of your opening paragraph.
If you want to make more money online you MUST get familiar with Google Analytics. Here’s your challenge:
As you add more items to test and more versions of each item to test, things start to get a bit hairy.
Let’s take the example above. To get the total number of options of this site you would multiply 4X3X5. This would yield you a total of SIXTY different combinations.
What’s NICE about this system is that you’ll discover the BEST combination of all your different options. What you’ll note is I did not say “quickly” discover.
The reason is that with 60 different options you’ll have to get 600 click-thrus to get just 10 people visiting each version. To make a statistically significant number of people you’ll need a lot more than 600 click-thrus.
Let’s assume your paying for all of these clicks. If that’s the case you’ll need to spend some money AND some time to get a sufficient number of clicks to make some intelligent business decisions.
Google Analytics will give you the percentage “confidence” levels with each option. So, the more people have clicked on a variation of your site, the more certain you can be that any particular version is your “best” option. The one that yields the highest rates of return.
If you’re in a field where it is easy to generate clicks, then you’ll have to wait less but you’ll still pay a good bit of money to find out what the optimum mix is.
BUT, if you’re in a niche market where it takes a while to generate clicks, then your testing period will take longer.
How about some real life numbers to make this concrete?
Let’s say you’re paying an average of 20¢ a click for each of your clicks. If you get 600 clicks you’ve already spent $120. Not a lot of money, but probably not enough clicks to get a high enough confidence level.
So let’s up the number to 1500 clicks. Now you’re looking at $300 for the test.
Assume you’re selling a $100 product and it’s purely digital and your profit on each unit sold is $100. Before the test let’s assume you’re closing 2% of the people on buying that $100 product.
After spending $300 you have now bumped up your closing ratio to 3%. Doesn’t sound like much but that’s a 50% increase in your closing ratio.
Your AVERAGE VISITOR VALUE has gone from $2 to $3 per click. That’s a difference of $1 per click.
It’s only going to take you 300 additional clicks to pay for this test. Good deal? Absolutely!
Google Analytics has now made it RIDICULOUS for people NOT to test their websites. It’s EASY! It can also be VERY profitable. If you have a lot of traffic coming to you from a variety of sources you’re now in a position to make a LOT more money every week/month, etc. when you test.
Is Google Analytics EASY to set up and use? They say it is. The truth is that it takes some work to understand it. As I write this I’m in the process of putting together some training to show you HOW to use the Google tool.
You may not need an ounce of training other than what’s on the site.
If you get frustrated, don’t worry. Help is on the way!
I’m going to put together a training program with Brian at some point soon to SIMPLIFY the whole process.
Another INSIGHT coming soon!