How to Measure Profits from Online Marketing?

Posted on : 15-07-2010 | By : Simona Rusnakova | In : Marketing Consultants, Search Engine Optimisation

Tags: measure online marketing, online marketing, online marketing effectiveness, online marketing profits, online marketing tracking, online tracking

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To apply goals and tracking in online marketing, you first need to gather some data upfront, so that you will be able to estimate the value your your website is delivering every month:

Average Sales Value – What is the value of an average sale?
No. of Products Avg. Client Buys – How many products does an average client buy in their lifetime?
Sales Conversion Ratio (%) – What percentage of leads will turn into sales?

When you get these data right, it is then easy, with all the online tracking tools available, to measure the real value your website is delivering every month. We recommend to measure the initial state before you start any optimisation work – since then you will be able to say how much your marketing activities have delivered.

Again, it might be worthwhile to confirm we are on the same page re these definitions:

Absolute Unique Visitors – How many people visited your website in a particular month
Visitors from Non-paid Search - How many people came to your website from organic non-paid search in Google
Visitors from Google Adwords – How many people came to your website from Google Adwords
Online Leads (Enquiries) - How many people contacted you through the website
Estimated Lifetime Sales – How much lifetime sales did your website generate, based on your average sales value and no. of products an average customer buys in their lifetime
Cost of Online Marketing – How much did you spend on online marketing
Estimated Gross Profit – What remains in your pocket after you deduct Cost of Online Marketing from Estimated Lifetime Sales

Since not all leads come through the website forms, it is probably a good idea to track all incoming calls and other leads. To get the most value from your tracking, we recommend using a simple call sheet which will track all incoming calls.