Hi all … here’s a follow up to this morning’s post regarding the hyper-responsive visitor. Consider implementing this type of a ppc survey, then scoring with the Livingston 80/20 cheat sheet below:
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From the monthly archives:
January 2009
What’s wrong with this statement … “Help me flood my site with Traffic?”
You don’t want a flood of VISITORS, you want VISITORS WHO BUY … that’s what’s wrong with it. (Most people learn the hard way)
Let’s look more closely. I’m seeing an average conversion in client accounts these days from 0.75% to 1%. The first implication of this is that only a small percentage of adwords visitors are responsible for their entire business.
But when you look at distribution of income in your house list –(you DO analyze your internal customer list, right– most marketers will find about 5% of CUSTOMERS responsible for 40% or more of their income.
(The 80/20 rule says 80% of profits come from 20% of customers … if you apply it again to the top 20%, it says 4% of customers are responsible for 64% of profits. On a practical level, however, I’ve observed more businesses in or around the 5% of customers = 40% of profits.
What does that mean?
Well, for starters, let’s translate so we can compare apples to apples and talk only about percent of VISITORS responsible for profits in your business. (I’ll bet you’ve NEVER thought this thru!)
If 1% of VISITORS buy (being generous), and 5% of purchasers produce 40% of your profits, this means 1% x 5% = 0.05% of your VISITORS are responsible for 40% of your profits.
0.05% of your VISITORS = ALMOST HALF your profit.
OR … it’s only ONE PAY PER CLICK VISITOR OUT OF 2,000 who really drives your business. 1 of 2,000 clicks!
This is radical for most adwords advertisers.
Virtually NO ONE understands this, and even fewer make concrete alterations in their ppc campaigns to go squarely after HYPER-RESPONSIVE customers.
And here’s the thing … hyper-responsive customers are almost always know what the rest of the market wants because they are, well… hyper responsive. They spend a lot of time studying, searching, absorbing all they can about your market, trying to solve every last problem and get every last benefit they can from it.
So when you sell to them, everything else falls in place.
Now, the obvious question is … how do you find them, and figure out what they want?
Stay tuned! (I’ll give you a hint … they leave clues in surveys, they leave clues when you talk to them, they leave clues on your competitor’s site copy, they leave clues in your Adwords history, they leave clues in the blogosphere, they leave clues in offline media, they leave clues in the ppc keyword tools … they leave clues everwhere!)
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