Yesterday, Jeff Sexton blogged about the importance of watching your cost per visitor (CPV) and revenue per visitor (RPV) trends. One of the best ways to get a handle on optimizing these key performance indicators is to get a better sense of your traffic mix.
Instead of looking at your traffic by what marketing efforts are bring the most amount of visitors and converting best, look at your visitor mix as a starting point.
There are 3 types of visitors who can come to your website:
1. Buyers – you know who they are because they converted to a sale or lead.
2. Potential Buyers – these are visitors who are in the market for what you offer, but for any number of possible reasons, don’t buy. They may be at earlier stages in the buying process, doing research to sell it internally, not adequately persuaded, driven away by bad usability, etc. The upshot is, there are countless number of changes/improvements you can test and make to bump these visitors from potential into actual buyers.
3. Disqualified Traffic – these are visitors who wouldn’t buy no matter what (maybe they arrived to your website by accident – they typed shingles and were looking for the medical condition not what you put on roofs, or maybe they don’t have the type of budget your product or service needs, etc.).
1. Of your non-buyers what percent are potential buyers? And how can you increase those?
2. What marketing efforts are bringing ample amounts of traffic, but with poor quality traffic – i.e., what’s driving a disproportionate amount of disqualified traffic?
Your web analyst should be able to tell you the answers to these questions.
The opportunity to increase sales is in:
For example, if you look at the top converting retail websites, one of the key reasons they have such high conversion rates (way above 3%) is their intense focus on bringing back repeat customers. Note: You should subscribe to each of their newsletters to see some of what they are doing!