Every serious
online business owner eats, sleeps and breaths targeted traffic to
their website. They spend the most money and time trying to attract
first-time visitors to their sites in hopes of generating new sales and
subscribers. But, believe it or not, it’s easier to increase your
income by simply selling more of the visitors you already get than
trying to chase down more traffic.
The solution? Tracking & testing! Probably the most overlooked
and underutilized, but certainly the most powerful strategy for
increasing sales and opt-in subscriptions. If you spend any time or
money on advertising, you must start testing and tracking. Simply put,
“tracking” means you measure the effectiveness of each individual
advertising source you use to promote your business.
For example, if you advertise in email newsletters, you should know how
effective each newsletter ad rates compared to all the others in terms
of sales and subscribers generated. This enables you to know whether an
ad makes or loses money. Testing means you constantly look for ways to
improve your ads in small, incremental amounts that add up over time.
The most common (and effective) tests you can run are A-B split tests,
which pit two variables against each other to determine which converts
more lookers into buyers. Split testing headlines, price points, and
guarantee periods make, from my experience, the best places to start
testing.
The reason testing and tracking can double your profits (or more) lies
in the power of small, incremental improvements. Lets say, for example,
you decide to do a series of split tests on a website that currently
converts 1 in every 100 visitors (1% conversion). You test, headline,
price, guarantee and a payment plan. If each of the 4 tests yields a
.25% increase in conversion, you would not see an increase in sales to
2% (4x.25%), but actually an increase to almost 2.5% since each
improvement builds on the last!
The most basic tool in testing and tracking revolves around the use of
advertising link tracker software. These tools measure the number of
clicks on individual advertisements (text links, banners, pay-per-click
ads, etc) and then measure sales or subscriptions generated as a result.
You get two choices with link trackers: a hosted service or software
you install on your own server. A hosted service offers the advantage
of easy setup and use. Most of the time you just sign up for the
service, enter the link you want to track, get your tracking code, and
you’re off to the races.
The disadvantage of a hosted service is that, if it gets abused, using
the URL of the service in your links can get your emails blocked or
your pages banned by search engines. The advantage of hosting the
software on your own server is that you maintain a higher degree of
technical control and can avoid the banning issues. The main
disadvantage of hosting it yourself involves the fact that you really
don’t have anyone to call for help if something goes wrong.
One of the most popular hosted link trackers online is
HyperTracker.com, though I’ve not used the service. My favorite link
tracker is actually part of an integrated e-commerce system at
http://www.MysiteSales.com. This service enables you to track your
sales and subscriptions made through the shopping cart.
Two options for software you install on your own server are
Dynatracker.com and ProAnalyzer.com. Both provide decent link tracking,
though no system I’ve tested provides 100% accurate results. But, with
that said, failure to test means you’re leaving money on the table by
wasting visitors you could otherwise convert to buyers with basic
effort at improving your sales messages.
Copyright 2006 Jim Edwards
Jim
Edwards is a syndicated newspaper columnist and the co-creator of an
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