Indentifying highly motivated buyers with the traffic sources report

vinpay

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Other reports I use frequently - those located in the “Traffic Sources” menu on the left navigation
bar.The reports here allow you to segment your data by direct traffic, traffic referred from
other sites, and search engine traffic (both paid and natural).
In particular, I use the paid search engine keyword report on an almost daily basis. To navigate
to it, click on “Traffic Sources,” then “Search Engines” in the submenu underneath. From
here, you can further refine the report by clicking on a search engine as well as the “paid” link
just below the graph shown in
The resulting report will give you basic performance metrics for each of your paid search keywords.
For instance, you can comp- the Bounce Rate, Avg. Time on Site, and Pages/Visit for
each keyword against the site as a whole
sin_image001.gif
In this example, the site-wide Bounce Rate is 75.8%, Pages/Visit is 1.66, and the Avg. Time on
Site is 37 seconds. These - the benchmarks for all of my Google AdWords paid search traffic.
Most people focus on optimizing their high-traffic keywords first.My philosophy is different.
High-traffic keywords often have high assist rates (see Chapter 31), so I believe that cutting them
prematurely is a mistake. Instead, I start maximizing sales by looking for those keywords that

sin_image002.jpg
You can sift through your paid search keywords to find under performers and outper formers.
The outlined keywords are in need of improvement.

have the potential to bring in highly motivated buyers. These keywords r- ly generate a lot of
traffic, but often generate a high percentage of total search revenues.
To do this, I sifted through this report to find a number of keywords that appear to be outperforming
these averages:
- Internet privacy protector: 27% bounce rate, 4:24 on site, and 5.73 pages/visit
- Hard drive cleaner: 42% bounce rate, 3:07 on site, and 2.42 pages/visit
- History cleaner free: 48% bounce rate, 56 seconds on site, and 2.9 pages/visit
These - the keywords my best prospects - typing into the engines. If I wanted results fast,
these would be the keywords I would focus my initial efforts on. For instance, I would immediately
“Peel & Stick” them into separate ad groups (see Chapter 24) and then create dedicated landing
pages for each. I’d also take measures to improve my quality score and possibly raise my bid prices.
After I’ve spent some time tailoring my site to accommodate these visitors, I then use this same
report to cut high-cost, low-ROI terms out of my account. Here, you look for keywords that

getting lots of clicks but have high bounce rates, low pages/visit, and short average time spent on
site. In this example, I’ve identified a number of keywords that are candidates for trimming:
- Search history: bounce rate 76%, 28 seconds on site, and 1.5 pages/visit
- Web history: bounce rate 76%, 32 seconds on site, and 1.5 pages/visit
- Computer history: bounce rate 77%, 52 seconds on site, and 1.5 pages/visit
I wouldnt immediately cut these terms. Rather, I would first look for possible negative
matches to cut down on the amount of unqualified traffic being sent through them. Then I would “Peel & Stick” these terms into separate ad groups and optimize them as before.
If after taking all of these steps I still couldnt get them to perform better than the site-wide averages,
I’d consider dropping their bids or deleting them from my campaign altogether.

Streamline the Sales Process Using the Funnel Report
The funnel report is one of my favorites for making conversion funnels more efficient. This
report is only available if you’ve set up goals for your site as described in the previous chapter.
Access it by clicking the “Funnel Visualization” link in the “Goals” menu on the left-hand navigation
bar
sin_image003.jpg

This report shows you the completion rate for each stage of your conversion funnel. The way
I use it is quite typical: simply look at the percentage of visitors who complete each stage and
then optimize those pages with the lowest clickthrough rates.Your goal is to get your visitors further
and further into the funnel until eventually they reach the final step (a conversion).
In the sample funnel report shown in sample image, the first two stages have approximately the
same clickthrough rate, so I would focus my optimization efforts on the first stage (it has
higher traffic, so my tests will return results faster). For more on this, see the next section,
which focuses on conversion optimization.

Prioritizing Paid and Organic Optimization Efforts
Website owners often ask whether they should focus more on paid search or search engine optimization
(SEO). There’s no pat answer for this. Contrary to popular belief, having high organic
rankings doesnt always translate to higher sales. In fact, many sites get much higher conversion
rates with paid search than they do from organic traffic.
At the end of the day, it depends entirely on your business and your visitors. The best
approach to answering this question is an empirical one. Try both and see what happens.
This doesnt mean you have to break the bank. Instead, you can experiment with small campaigns
and then see which performs better. And Google Analytics’ segmenting feature is a great
way to measure this.
Here’s an example. In sample image, I’ve broken out the conversion rate report by both “paid”and
“unpaid” traffic.You can see that the conversion rate for organic traffic is more than four times the
rate of paid traffic. This is a strong indicator that we should be focusing more on SEO than PPC.

The Granddaddy of All Google Analytics Metrics: The “Dollar Index”
For years, I considered this to be my most powerful weapon for increasing website sales and kept
it a closely guarded secret. It’s now included as a standard metric within Google Analytics, so the
cat’s out of the bag.
The $/Index (“Dollar index”) tells you how much every page on your site contributed to your
revenue. It’s calculated by first calculating the total revenue generated by visitors to that page and
then dividing that by the total number of views of that page (including visitors who didnt purchase
anything).
Here’s an example. Assume that a particular page was viewed 360 times and that visitors to
that page generated $18,184 in sales. The $/Index is calculated as follows:

$/index = $18,184/360 = $50.51

sin_image004.gif

By itself, the figure is interesting. For instance, if you find high $/index pages that arent in
your sales funnels, you may want to test them (or portions of them) as potential landing pages.
However, the $/Index statistic becomes far more valuable when it’s calculated for every page
on your site (this is difficult to do by hand, so it’s a welcome addition to Google Analytics). You
can then layer this data on top of your website traffic map (see the next chapter) to identify highvalue pages. For instance, in the early days at
AdGooroo we discovered that our pricing page had a high $/index, despite being buried somewhat deeply in the site. As a result, we took this
page and linked to it prominently from the top of every page. Today, this page is one of the most viewed pages on our site and assists in driving a significant portion of our sales.

Conclusion
If you want to succeed at PPC, you’ll need to have at least a rudimentary grasp of the reports
provided by your analytics software. In this chapter, we gave you the keys to using Google Analytics to explore your visitors’ behavior on your website. These reports tell you where your
visitors came from, what pages they visit, which ones they find most interesting, and why they are leaving. In the next chapter, we’ll pull it all together to create one of the most powerful tools
at your disposal: traffic maps.
 
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