Do You Know The Most Important Metric Online?
A metric is a system of measurement, like an inch or an ounce. When we’re talking about blogs and websites there are several metrics we use to gauge the site’s effectiveness and measure our success. You’re probably thinking the most important metric of all is traffic, but you’re wrong. It’s your conversion rate.
Why It’s Not Your Traffic
Which would you rather have – 10,000 visitors a month with $1,000 in sales, or 1,000 visitors a month with $2,000 in sales? Obviously, you’d rather have the $2,000. It’s more money and you didn’t have to work as hard to get it.
- But how is it possible to get more sales with less traffic?
- The product/service you’re promoting is more expensive
- You’re earning a higher commission rate
- You’ve done a better job at targeting your traffic
Why It’s Not Your Sales
Using the above example you might think that blog that’s making $2,000 a month is pretty successful. But, you might be wrong again.
Yes, you’re getting those sales from only 1,000 visitors per month, which is a very high average by industry standards. However, if only 10 people per month are buying then your conversion rate is only 1 percent, which is extremely low. Imagine how much more money you’d make if 100 people per month were clicking that Buy button.
Why Your Conversion Rate Is Your Most Important Metric
Your conversion rate is the ratio of the number of people who visit your page versus the number of people who complete the desired action. That action may be following a link to your sales page, subscribing to your list or clicking on that Buy It Now button. Regardless, it’s the most important metric you have.
If you’re attracting a huge amount of traffic each month you’re probably thinking you’ve done everything right. You’re using the right keywords and you’re creating great content. If you’re seeing a large sales total each month you’re probably thinking you’ve crafted the perfect sales page. Now all you need to do is work harder to drive more traffic so you’ll get even more sales, right?
Wrong, again. Before you start toiling away trying to drive even more traffic, take a look at your actual conversion rates. “A lot” is relative and it might not seem like “a lot” once you get the facts.
When you find out that only 1 out of every 1,000 visitors to your blog are actually buying what you’re promoting then it becomes clearer – Instead of focusing on getting more traffic, all you really need to do is work on your money pages, the pages that should be converting but aren’t. Maybe you need a stronger call to action or maybe you need to hire a professional copywriter.
All of your metrics are important for different reasons. Building your traffic is certainly important but it’s not the solution to all your problems. Monitor the conversion rate on every sales page and squeeze page on your blog because that’s the metric that really counts.