Do you hate analytics? Sure, everyone says that good conversion tracking is an important part of effective online advertising, but is it really worth the effort?
Don’t worry, no judgement here. Honestly, I’ll admit that the prospect of setting up good conversion tracking doesn’t set my heart all aflutter.
But here’s the thing…
As frustrating as setting up and maintaining your online analytics might be, the fact is, good conversion tracking does matter. In fact, it matters a lot.
Good Conversion Tracking Matters
If you think about it, this makes complete sense. You can’t improve what you don’t understand and if you aren’t tracking the results of your online marketing, how do you know what’s working? (and what isn’t?).
And, if that isn’t reason enough to implement quality conversion tracking, we’ve audited over 2,000 AdWords accounts at Disruptive and discovered that 42% of AdWords advertisers aren’t tracking any conversions:
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Can you say, “golden opportunity”?
If your competition doesn’t have good conversion tracking in place, they can’t optimize their campaigns for maximum profitability. But, if you are tracking conversions, you can optimize your campaigns and blow past the competition!
It gets better, too.
Of the 58% of AdWords advertisers who are tracking conversions, only half of them actually have good conversion tracking in place (you know, the kind you can actually use to improve your online marketing?).
So, while the average conversion rate in our study was 2.18%, the average conversion rate for businesses with good conversion tracking was 3.16%.
In other words, on average, most companies aren’t tracking 31% of their conversions. That’s like trying to drive with only 69% of your vision.
Sure, you might make it safely to your destination, but you’re more likely to end up in a lot of trouble.
But, if your competition happens to be driving with the blinders on, that gives you the advantage…
What Good Conversion Tracking Can Do for You
Now, all of this data is all well and good, but is good conversion tracking data really all that valuable? It’s numbers, right?
Yes, it’s just numbers, but with a little extra effort, you can turn those numbers into huge opportunities for your business.
For example, we had an early AdWords client that worked in a fiercely competitive industry. In fact, their cost-per-click and cost-per-conversion had doubled during the previous 12 months.
Despite these increases, the company was still profitable, but without some sort of a breakthrough, it was uncertain how long that would last.
Fortunately, we had set up robust web analytics on their site and we figured there had to be an opportunity hiding in all of our data. We scoured through the information and discovered something.
A huge number of our sales were coming from a completely unexpected set of keywords. Those keywords, in fact, had been added almost by accident, but they were actually our best, cheapest source of leads and sales.
Stunned by what we had found, we quickly began building campaigns around these keywords and search terms.
The results were game-changing.
As you can see, our client’s cost-per-conversion dropped by over 67%. They had so many affordable leads, in fact, that their sales team was overwhelmed. Instead of fighting to lower cost-per-lead, the company was now fighting to get enough sales people on staff to field all the leads!
This discovery changed the fate of this company. In fact, after a few years, my client had grown from 25 employees to over 250 employees! A little quality conversion tracking was worth well over $5 million in profit and millions in VC investment.
So, was conversion tracking worth the effort? You bet!
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