How to Measure Your Traffic Sources

Posted by
Mike Lyon
Date
 June 9, 2009
Comments
6 comments

As you explore what new home listing services to utilize, it is extremely important to measure the results. It is not just about the amount of traffic but the quality of the traffic. Last week I created a poll and shot it out via Twitter & Facebook to over 1000 connections. The results are below.

What new home listing service gives you the most qualified traffic?(survey software)

Interesting results. Let’s look at the ways you can determine the quality of traffic using your website analytics. Here are a couple of key metrics you need to pay attention to:

  • Visits
  • Pages Per Visit
  • Average Time on Site
  • Percentage of New Visits
  • Bounce Rate

Let’s use the example below to review.

Traffic Source Visits Pages/Visit Avg Time on Site % of New Visits Bounce Rate
Traffic Source A 235 12 10:00 69% 20%
Traffic Source B 150 5 6:00 10% 50%

 

What story are these analytics telling you? Based on the key metrics, a visitor from Traffic Source A would be a more qualified unit of traffic than Traffic Source B. That doesn’t mean you need to cancel all traffic sources that don’t match the top producing sources. You just need make sure you aren’t paying too much for less qualified traffic.

You can also go one step further when you set up a "Conversion Goal" in your analytics. Basically, this measures conversions and tracks it back to the referring sources. This is another great metric to look at but you shouldn’t base all of the decisions on a conversion. Many people will find your site through a certain traffic source then come back later and fill out a contact form – making it hard to tie that conversion back to the actual source that they discovered your site through.

The web has given every marketing director a higher level of accountability.

P.S. I have been talking with a lot of builders lately who are presented with online advertising campaigns that are solely based on "impressions". Essentially, impressions refers to how many times the builder’s ad will show up in front of someone online. Be very careful, ultimately, you need to measure performance on click throughs – not impressions. That will tell you if your ad is getting in front of the right people. Showing an ad to someone looking at cars online is not your target audience.

 

  • Great post. It is all about getting the right traffic to your site. Traffic that wants to buy. . . not just browse πŸ˜‰ The BEST thing about the Internet is that results are highly measurable and you can make highly educated decisions on advertising sources and listing sources (and even where to blog) based on your tracking report and analytics. ROI is important and measurable. Keep up the good work!

    • Thanks for the feedback Carol. Its all about accountability these days. Had a marketing director tell me – when things get tough – everyone is looking at marketing under a microscope. This is a great way to measure.

  • Great post. It is all about getting the right traffic to your site. Traffic that wants to buy. . . not just browse πŸ˜‰ The BEST thing about the Internet is that results are highly measurable and you can make highly educated decisions on advertising sources and listing sources (and even where to blog) based on your tracking report and analytics. ROI is important and measurable. Keep up the good work!

    • Thanks for the feedback Carol. Its all about accountability these days. Had a marketing director tell me – when things get tough – everyone is looking at marketing under a microscope. This is a great way to measure.

  • Hey Mike, Nice job simplifying what’s often seen as a complex question. There is no reason everyone shouldn’t understand how to access some form of analytics and see for themselves what’s going on inside their website.

    Keep up the great work. Will be calling you soon to talk Vegas!

    See ya Mike.

  • Hey Mike, Nice job simplifying what’s often seen as a complex question. There is no reason everyone shouldn’t understand how to access some form of analytics and see for themselves what’s going on inside their website.

    Keep up the great work. Will be calling you soon to talk Vegas!

    See ya Mike.