How to Use Quantitative Data to Make More Money

Written by Alex Harris

This entry discusses in detail how you can use quantitative data to make more money from your website.

Quantitative data is all about the numbers, the analytics that we look at trying to find a needle in the haystack, trying to find how to get bigger impact on the changes that we make, and finding the right areas to really to test.

I am not an analyst, but because I’ve actually done it so much, I’ve figured out a good process. To be honest, I don’t even know if this is the right process or not, but I have seen other people in my space talking about very similar ways, so I would say I’m on track.

We’ll talk about some tools that you can use to track that data and getting results from that data. The majority of people use Google Analytics, but there’s also tools like KISSmetrics, Mixpanel, and Heap Analytics, to name a few. There’s a bunch of different ways to get data. We’re going to be talking about how to analyze our website’s stats, and then what tools that we should be using to make the most improvements. This in result will give us bigger impacts on the tests that are running.

I do that through my Quick Win process. I’ve actually proven in the last couple tests that I’ve received over a 50% increase in conversion rate in the first 3 weeks of running the test. And because it’s Quick Wins, you’re finding low-hanging fruit. Getting a 50% increase in conversion, average order value clicks is indeed a huge improvement for my small business clients.

 Tools to help you gather and analyze quantitative data

The tools you use to gather analytical data and quantify the changes that you’re potentially going to be making are crucial. Here are some of the tools that I find particularly helpful:

Google Analytics. That tells you what has happened on your site. It gives you important website data, such as traffic, bounce rate, time on site, as well as data about your customers, like where they are from and what browser or device they use to view your website.

KISSmetrics, on the other hand, is a software that really complements Google Analytics tell you who does what on each of your sites. It will tell you churn, lifetime value, and what the intent is before they may actually cancel. You can maybe flag those and send them an email before they may cancel your product.

Mixpanel and Heap Analytics present you with different ways where to customize your analytics and figure things out, like maybe when someone’s filling out a form and you can track how many fields they actually filled out before they leave.

A lot of this stuff I learned initially in my first couple of episodes when I interviewed Neil Patel. It was a great episode where I asked him a lot of the questions that I’m explaining here today. (If you want to see that episode you can visit alexdesigns.com/5.)

The link between qualitative and quantitative data

Before even getting started with quantitative data, this is all founded that you have already gone through the qualitative process, that you understand exactly why customers are doing what they’re doing on your site. What is going on in the customer’s mind? Do they like your content? Are they telling you how to improve your blog and what to write next? What products are they interested in? What problems that they have? Where are they located? What’s their demographic?

You’re gathering all these different opinions and you’re aggregating them to build out different persona models. That’s where qualitative data becomes the foundation of everything that we do in the quantitative aspect.

Quantitative data, on the other hand, is all about the numbers, visits, traffic, bounce rates, time on site, social shares, how many times people actually visit your about page or your total conversions. You need to get the most out of this data. To do that, I go through a process focused on helping improve conversion I’m going to be taking you through my Quick Win process, how on average I’ve increased conversions by 50% in 21 days, and it’s broken up into my discovery process, creating a hypothesis, executing and creating tests, reviewing analytics, and then scaling those wins over time.

 

The Quick Win process

The Quick Win process is all about finding where the biggest impact that you can make in the shortest amount of time from the data that you’re collecting. Most sites are built upon the 80/20 rule. Use Google Analytics to figure out what 20% of your pages are making up 80% of your traffic. We want to start with the most traffic possible. That way you can get the biggest win.

We go into Google Analytics and you organize your traffic and landing pages. I think it’s under behavior. By topic traffic landing pages, top session, and then you want to also organize them by revenue. If you have e-commerce tracking and commercial rate tracking set up, then you should be able to organize your top traffic pages by revenue, as well.  Then, you want to organize those topic traffic pages by bounce rate. Now you know the top pages are getting the most bounce rate, they have the most traffic, and they potentially have the most conversions, as well.

This is pretty common in e-commerce or SAS companies where one or two of your blog posts are helping drive just as much traffic as the homepage. You want to identify about five to seven major pages where you can test. Now, once we know those topic traffic pages, I also apply a visual website optimizer to each of those pages. I don’t want to start a test yet, I just run revenue tracking or conversion tracking on those particular pages. That will give me heat maps of the page, then I can determine exactly where to test on those pages but also it gives me revenue tracking –  how much revenue I am making from each one of those pages.

Then now I have a profile of the top traffic page, the top pages by revenue, the top pages by revenue by bounce rate, and that gives me basically a map of where I should start testing. Not only by page but because I ran heat maps, now I can figure out exactly the section of where people are clicking and that’s where the first place I start to optimize.

I optimize the section that is getting the most clicks, and if I’m able to increase their clicks or increase that conversion just from that one spot in that page, more than likely you’re going to have a huge win.

 

 

Example of a Quick Win process done right

Let’s take a look at the example, maybe an e-commerce site. Let’s say you’re selling jewelry and the rings section has a 50% bounce rate. The rings category section, and the diamonds category section has an 80% bounce rate, but they both have about the same amount of traffic and the same amount of revenue.

You’d start optimizing at the diamond page section. Maybe halfway down the page there’s a particular opt-in or a bestselling item or featured item or item under $100. The majority of people are clicking there, now you know exactly that you want to spend time to optimize the call-to-actions, the headlines, and whatever right in that particular section. It’s a top traffic page, it has a high bounce rate, it has a lot of opportunity to increase their revenue, and you know exactly where on the page now to test.

You use one piece of data from Google Analytics, we applied visual optimizer to it to track revenue and heat maps, and now we build out our first hypothesis. This is exactly the things that you can do on a major basis across your whole site. We get this micro granular on creating micro conversions based on our quantitative data. Then we apply a quantitative analysis of what we learned to make better decisions for that test. I would start to test different headlines, bestselling items, items that are $99. The majority of people spending their time on that particular part of that page, that’s where I’m going to help make the most money.

You can also do something different. Try to figure out the data and the keywords that people are searching for before they even start their query in Google. You can go into Google AdWords and do keyword search terms by match type and you can know the conversion and the revenue by each keyword. Not only do you know by page now, now you know the perfect keywords that they’re coming over to visit that diamond page.

That way you can spend more time on the things that are already winning and start to remove all the other keywords that aren’t working for you as negative keywords. All of a sudden you’re now optimizing your cost, improving your quality score on your landing page, and  improving your conversion rate on the back end. Win, win win. That’s all what the Quick Wins process is all about.

 

Goals and key performance indicators (KPIs)

During this process, we are able to determine the goals that we’re going to create. What are those micro-conversions? Also, what are those KPIs? Obviously there’s conversion rate but there’s also average order value, when are you getting more people to spend more money in a shorter period of time, and then there’s the bigger one, the lifetime value. Maybe you are selling lower-price items initially, getting people into as a customer, and then upselling them additional more expensive items later down the road, maybe through email or upsells.

We took one element of a page, we created a hypothesis, and now we’ve executed tests to figure out if it’s a win or not.

The review process

Once the test wins, now we move into the fourth step, the review process. We now want to review the average order value of what that particular test made us or not, the conversion rate, the clicks, and we now understand better how to quantify the changes that we’re making based on our analytics, based on testing, and then we can apply those same exact wins to the next step, being able to scale and grow.

This is where many conversion optimizers miss. They don’t take what their win is and they apply it to other areas of their site. In e-commerce, if you have a win on one category page, obviously you want to make it a standard in your global template category page. Now all of a sudden, every category you have has the wins from the previous test. This also applies to the product detail page and the checkout process.

Furthermore, in a SAS company, you can apply the same wins that you receive from your landing pages or your onboarding process, you can take those same wins –  maybe it’s a headline or a call-to-action or a picture that actually moved the needle – and you create Facebook ads with them or you create pay-per-click display ads with them, targeting campaigns with them.

Take the same wins and apply them to mini marketing strategies and now you’re really scaling and growing. This is where it really affects the bottom line by taking one win, scaling it across all of your marketing channels, all of your different Web pages, all of your different landing pages, and that’s where you really grow your bottom line.

This also applies not only to e-commerce and SAS but it applies to leads. If you want to build your list and you just feel like your growth is just getting slow, you need to start optimizing in a different way. Find where there’s bigger opportunity to quantify the changes that you’re going to make to your site. This is just the start of the process in conversion. Finding those quick wins is actually one of the easiest processes because we get the biggest improvements. It’s those two or three additional tests down the road that we’re talking about that in many different episodes.

This is how we figure out how to use quantitative data in the right way. This is essential to making your website grow, measuring the way you are, creating hypothesis for new opportunities, and then testing versus your control to beat your baseline. That continues iteration and improvement based on quantitative data. Be data-centric and understand exactly how to make decisions in the right way.

We actually use an analyst, as well, in the very end after our tests are over, I’ll give it to an analyst, then they go and review to make sure that the overall changes that we’re going to make in the end are actually going to be the right ones. This is a weekly show at marketingoptimization.tv.

Thanks for reading to the end. Please let me what is clear and what needs more work with the concepts I pointed out to help you make more money online. If you are an analyst, I urge you to reach out to me and let me know how you are doing, figuring out the right tools to use and then getting the right data from those tools.

If you want to learn more about me, you can visit my website at alexdesigns.com. I love connecting with like-minded entrepreneurs focused on conversion rate optimization, marketing, landing pages, ad media, anything in general.

Let me know what you think! Enter your thoughts in the comments below.

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