If marketing metrics sounds complicated to you perhaps you’re guilty of not measuring your activities as often as might be helpful. Businesses that measure their activities perform higher than those who do not (said every business professor and adviser we can think of).
Do you want to know how to figure out which recommendations and affiliates provide the highest return?
If you want a quick way to RANK your CLICK DATA in order to uncover the most powerful recommendations your business receives, author Mark Jeffrey has provided that methodology. See these easy steps, below:
- On a spreadsheet or piece of paper, make 6 columns.
- Column 1 is titled ranking by direct traffic.
- Column 2 is the “source name” or link, for example, http://www.mysite.com or http://www.youtubecom.
- Column 3 is “Direct Clicks”.
- Column 4 is “Recommendation Clicks”.
- Column 5 is labelled as “Lift from Recommendations”.
- Column 6 is labelled “Word of Mouth”.
Columns 3 and 4 are numbers that you enter based on your traffic. You should be able to access direct clicks and recommendations clicks from your website analytics. For example, Google Analytics and Facebook Analytics will give you these numbers.
To determine the percentage of lift (column 5) just divide recommendation clicks by direct clicks. Format this number as a percentage if you are using a spreadsheet.
Column 6 is calculated by adding direct clicks and recommendations clicks together. That sum is then divided by direct clicks. This gives you a value to use as alternative ranking to direct traffic. It is called word-of-mouth (WOM) and is formatted as a decimal figure.
Now you may easily re-order your rankings in a simple way that is not based on direct clicks alone. In Mark Jeffrey’s version described here, you re-order your traffic based on word-of-mouth (WOM). This allows managers and owners to view the power of recommendations from affiliates, sponsors, and others in an informative way.
Once you have completed these steps for your campaign, you’ve uncovered which sources are providing the greatest lift and which sources are giving you the greatest return, based on their word of mouth.
Sometimes rankings provided by direct traffic alone do not tell the whole story!
Source: You can download Mark Jeffrey’s formulas and other tools.
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