Google Analytics Internet Training Course

Posted on 22. Jan, 2010 by admin in Online Training

One of the main factors in analytics is something called KPI also referred to as a “Key Performance Indicator“. A Key Performance Indicator is closely related to your business goals. It is not the same for every business and every business is going to have a unique set of Key Performance Indicators that indicate to them when they are making the most sales, profits and revenue.

When you look at the results of your Key Performance Indicators, you are going to look at various factors. For example, if you are doing it for lead generation and you are trying to set your KPIs, they would be measured in terms of your email inquiries, your leads, your qualified sales ready leads, your sales stemming from your opportunitiy funnel (if you are marketing online, you should have a sales funnel of some sort), your revenue, your profits, and with Adwords, your KPI is going to be based heavily on your Return On Investment (ROI).

KPIs are so powerful because you are dealing with the known and not the unknown of starting out a new campaign or testing that campaign in optimizing it. You are no longer guessing at what works and what doesn’t work for your business. You are building on what is already proven to produce leads, sales, and profits. You are also strategically pulling in more revenue from the resources that you already have available.

Your measurements in relationships will shift and you will start asking questions; such as, how many of the leads I generated were qualified and sales ready leads? A sales ready lead means that he or she is looking to speak to a sales person. There is a big difference between an email inquiry and a sales ready lead, who is actually ready to discuss business and move towards a close.

Another question you may ask is which of the campaigns in my Google account produce the most sales ready leads? Another question, Which of my campaigns, keywords, ad headlines produce the most sales ready leads that convert to sales opportunities that were closed in my funnel?

These are the kinds of things you want to measure. You want to be tracking across the board. This includes everything that is happening in your campaigns from a profit standpoint. You are going to be measuring the top keywords and ad groups, urls, ad headlines, but not based on their performance metrics; such as their CTR’s and conversion rates coming out of your Google campaigns. You are going to be looking at analytics, back end tracking, and look at the number of leads they are generating, but more importantly, how those sales opportunities are producing profits and revenue. In the end, you are going to be attaching a dollar amount to each of these elements to determine where you are getting the best Return On Investment (ROI) thereby allowing you to continue on maximizing your ROI.

When it comes to action on relationships, you want to focus on the relationship between the leads and the sales opportunities, the sales opportunities and the leads that are closed, you are going to be thinking about how those sales opportunities are relating to the closes as well as the cost of each sale, the profit from each sale, and then the revenue potential, when you take it down to a keyword, ad headline, landing page that is converting well for you. You are going to also focus on the revenue potential and which of those factors is really winning the game.

While creating Google campaigns, you focus on the behavior, in terms of browse, shop and buy. It is the buying behavior that determines you profitability. It is not going to be the metrics related to traffic and cost as much as the buying behavior. Thus, during the optimization, look at how the buying behavior is affecting your conversion rate. You are also going to look at how this behavior within your funnel is affecting your ROI. Again, this is always going to be measured in leads, sales, and profits. You want to clearly define the KPIs in your campaign. This is referred to as “Gold Mining”.

For example, suppose you have a test campaign that is targeted to a specific market. This campaign may be divided into browsers, shoppers, and buyers, while looking at short tail and long tail keywords, looking at the types of conversion rates you are receiving. Once this campaign has been active and is optimized for traffic and cost, just based on your conversion numbers on the back end; meaning your sales funnel, you are going to start to segment your top performers on their ability to produce leads and at what level. This allows you to no longer look as a leads as a lead. You are now defining the difference between an email inquiry, which can be monetized very well in your funnel, which is a different experience than a sales ready lead that is going to move into a buying pattern, most likely for a high ticket sale more quickly.

Now, mining the traffic just into a leads category, you are going to be mining that traffic that converts into two separate Gold Mine campaigns. One is for an email inquiry, which is an opt in at your website. The second one is for a sales ready lead, which is someone that has moved forward with you in the opportunity funnel to actually discuss the opportunities, your products and services, and has a much higher likelihood of buying from you.

This also applies to your sales. You are no longer going to segment your keywords that convert to sales just at one level. You are not going to bring them into sales or sales or sales. We all know in terms of profitability and ROI, there is a big difference from someone who makes a first purchase with us and someone who makes repeat purchases and purchases our higher ticket items and does it more frequently. You should be “Gold Mining” from this standpoint moving forward. You should Gold Mine from people who are a first time buyer versus your best customer who is a repeat buyer and has made it through your entire funnel.

These are the kinds of ways you are going to start segmenting your traffic; even within your Google campaigns. When you log into Google, your Gold Mine campaigns are clearly defined and you know exactly where to put your money, what you spend, and how much you are investing. At this point, we no longer even think about cost as cost. We treat our ad dollars as an investment; one where we want to get the most out of and keep the most in our pockets as much as possible. Thus, allowing use to win in metrics of business, which is all about profitability, cash on hand, increased revenue, and increased market share.

There Is More Information On This Topic, vist: Pay Per Click Training