I previously did this as a presentation at a Brisbane internet business meetup with great feedback, so I’m also putting it online as an article.
- You should understand these three definitions before reading the rest of the presentation.
- This is the rough structure of the case study website. It will be kept private since it’s a profitable topic.
- In summary, it compares three products, like a product review.
- This is a useful chart, the break even chart.
- Assuming a static revenue per sale and static ad CPC the break even point is dependent on conversion rate.
- You can project your ROI for various conversion rate targets.
- This is the data used to create the break even chart. You can now create one yourself.
- e.g. 1000 visitors at $1 CPC costs $1000. 1% conversion rate of 1000 visitors is 10 sales, at $40 per sale that is $400 revenue and $600 loss.
- In my case I did 2 months of Multivariate Testing with 500 uniques per day. It led to 48.3% more click throughs to the product, leading to a similar amount more revenue.
- It took only about 10 hours of work over 2 months to achieve 48.3% more revenue per visitor.
- The extra revenue per visitor allowed me to scale up the advertising profitably to increase profit by $600 per day.
- Headings have a great effect on your visitor. Visitors decide whether to stay or leave based on the heading.
- Trust also plays a big part in conversion rate. So use testimonials, warranties, badges etc.
- Pick a good product photo, maybe of somebody using the product.
- Test these other things too, maybe one will increase your revenue by 10-20%…it’s worth the effort.
- Google Website Optimizer is a really good tool and it’s free. It does both AB tests and Multivariate tests, so go and bookmark it.
- Here is a checklist of things to test. If you test them all you could easily increase revenue by 50%.
- A 50% increase in revenue is very achievable. Once you reach 50%, go for 100%, test some more.
- Optimizing your ad campaign can increase your revenue by a further 100%, but that is another topic.
- One last thing. If you don’t know what to test, ask your visitors what they want.
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