Colom Newbie

Do you agree that you can not improve something or manage it before you actually measure it? If you have your online business and want to develop it, you have to know how to measure your business performance and determine what is working and what is not.

But what are the more effective and painless ways to measure progress without being stuck in the paralysis of over- analysis? This is a skill you need to master to succeed, and here are three ways to do so.

Firstly, you need to find out how much is your average customer worth. This is done simply by adding up how much did the customer cost you, and subtracting it from your initial revenue from a customer.

To illustrate, i you have paid 30 cents for each of 100 hits to get two sales at 50 dollars each, then each of those clients costs 15 dollars to generate. And each of them is 35 dollars worth.

You also need to think of the cost you pay to process the payments and other overhead costs. Only after you have done it, you will be able to see the clear picture of what is your actual profit from every customer. After that you can pass over to measuring the lifetime value of each of your clients.

This will take a bit longer to do, but the reward will be well worth it, because you will be able to decide whether you need to pay to get more customers or simply increase each ones lifetime value. If you have other offers customers are taking advantage of, you factor the profit of those products back into the equation.

Imagine you have got 1000 clients in your client list and 100 of them buy your language study package at 100 dollars. This means you add 10 dollars to the value of those clients, and this increases your value to 45 dollars.

Now as you are doing this, you will find that there are other variables involved, but this should give you an idea of the process. Once you know the worth of each customer, you can put together a plan for using the third measurement key. The third key is measuring the buying motivation of your established customers by asking them questions and sending them surveys. This is the most valuable way to measure your marketing process, because it will tell you exactly what to do next.

No matter how great you think your ideas are, in the end of the day only customers will decide what really works. This is the reason why it is better to find it out from them before you even start creating your product. If you understand what is every clients value and know how to make them purchase from you, you can avoid spending a fortune on your marketing and get you business to absolutely different level.