You might be questioning why it is important to know the details of your web site stats. You need to know the numbers so you can improve sales or improve traffic. Knowing your web stats isn’t hard, take a look at these different types.Sales: What is the amount of sales you are making?
Unique visitors: This is the amount of people visiting your site. This is not hits (amount of graphics downloaded). Please spend the small amount of money on a tracking service that will tell you how many unique visitors you are getting.
Sales conversion rate: This is just like what stores in the mall do. Get the number of sales in a time period and divide by how many visitors you get in the same time period.
Value per visitor: This shows how much each visitor’s value is. Selling price multiplied by conversion rate.
Now lets do a story problem to get the hang of these formulas. John sells sneakers for $70 and last month he sold 30 pairs of them. The tracking system showed there were 1,200 unique visitors during that month.
What is his conversion rate? (sales divided by visitors)
30 / 1,200 = .025 which is 2.5%
Now figure out the value per visitor. Take the conversion rate and multiply by the how much one pair of shoes cost.
So .025 x $70 = $1.75 . Each person going to the site has a value of $1.75.
These numbers are important if you want to advertise because you know how much money you can spend without going in the hole. If John did a Pay Per Click ad he should never spend over $1.75.
This is simple math and it will help you so much. Begin doing this today!
