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Is Your Traffic Healthy?

Discover If Your Business is Prepared for


the Next Panda Update or Zuckerberg
Suprise

Is your eCommerce business unnecessarily exposed to risk from algorithm updates and
pricing changes? Are you overly reliant on revenue from Google, Facebook and
Youtube?

It might be, heres the quickest way to find out if youre playing a dangerous game, and
a some ways to protect yourself.

With this step-by-step 5-minute exercise, you will be able to get a reading on the
vulnerability of your own website.

1. Step #1: Analyze Your Channel Report in Google Analytics

a. Head in Google analytics and select a channel report. Were going to want
to analyze this section because its going to give us a picture of where our
traffic is coming from, as well as where our revenue is coming from.
b. In the example below, Ive highlighted both the sessions and the total
revenue coming from each channel in red.


2. Step #2: Categorize Your Traffic into Two Categories, Earned and Owned.
a. Earned traffic is what get from someone else, Youtube, Google, Facebook,
etc. You are able to contribute content on these channels, you are able to
engage with the audience, you are able to control the conversation a bit,
but you don't own anything else (data, relationship, creativity, etc.). You're
basically renting from them.
For Your Free Analytics Audit, contact us today at:
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b. For this example, Ive also included paid search in the earned category.
i.
Platforms You Dont Own (Higher Risk)
1. Organic Search
2. Social
3. Paid Search
4. Referral Traffic
a. Youtube
b. Partnerships with other website
c. PR Wins
d. Groupon
e. Yelp
c. Owned traffic comes from the mediums that you control. Email, direct
traffic, referral programs you build, etc. This is the safest traffic.
i.
Platforms You Own (Lower Risk)
1. Direct Traffic
2. Email
3. Referral Traffic (Your Own Referral Programs Only)
d. Some people also like to break out paid traffic into its own separate
category, but for our purposes, earned and owned works great.
3. Step #3: Determine Where Youre Unbalanced.
a. The next step is to look for irregularities and imbalances in your data, this
is going to give us an idea of how vulnerable you are to outside influences.
b. The best way to do this, is to create a table in Excel and categorize your
revenue from each channel.


c. I stress that I recommend categorizing revenue, not traffic. Why? Because
lost revenue hurts, lost traffic doesnt.
d. Your example will look something like this:

e.

f. This is a fairly balanced example of what you could find.
For Your Free Analytics Audit, contact us today at:
(877) 259-2296 ext 702 or help@ecommerceinfluence.com


4. Step #4: Analyze Your Data and Determine Your Risk
a. The first question we always get is, whats a good mix of traffic for my
business?
b. Every business is going be different, especially when youre just starting
out, but as you grow, if you want to continue to grow in ways that are safe
and long-lasting you will need to diversify your traffic to limit your risk to
shocks.
i.
Dropshipper may not be able to compete on PPC because of low
margins, long-term they are going to be out of business anyway.
ii.
Early stage businesses might be high on PPC because they are
testing their products.
c. The goal is to make sure youre balanced. Just like an unbalanced
investment portfolio of, if youve got an unbalanced customers acquisition
portfolio, youre taking unnecessary risk.
i.
If youre too high on earned channels, youre going to be at risk.
ii.
If youre too high on owned channels, youre not going to be taking
enough risk and probably missing out on opportunities to grow.
5. Earned Channels
a. Organic Search - This is the most common area business owners can get
in to trouble. It happens because SEO is often the breadwinner when a
business is just getting off the ground. As some of you have probably
already realized, you never know when an update is going to knock your
traffic off. or if Google suddenly decides that needs to pay them for results,
you could get into trouble.
i.
Over 40% -> Risk
ii.
Over 50% -> High Risk
1. Ideally, 25% - 30% of your revenue should come from this
medium, as youre building your business traffic can be risky.


b. Social - Are you ready for the next Zuckerberg surprise? If youve been
following Facebook for the last few years, you know what Im talking about.
For Your Free Analytics Audit, contact us today at:
(877) 259-2296 ext 702 or help@ecommerceinfluence.com


Think about how quickly you lost the ability to reach your fans when
Facebook decided to incentivize promoted posts. These customers came
quickly, and they can easily be taken away.
i.
Its important to remember our history. Profitable advertising
mediums come and go, and its important to always remember what
they are, mediums.
1. Infomercials were banned overnight in the 70s. You went to
sleep, and woke up and lost your entire ability to get
customers.
2. The same thing happened with cold calling when it was was
banned. Overnight, call and profit centers that were the main
source of revenue for businesses, were no longer
operational.
ii.
If Facebook doubled the cost of advertising overnight? How would
that affect your business?
iii.
Here are some guidelines for your revenue from Social.
1. Under 5% -> Under Utilized
2. 5-10% -> Good
3. Over 10% -> Risk
4. Over 20% -> High Risk
iv.
The general sweet spot Id like to see here is between 5 and 10%.
c. Paid Search - This is another channel that is often overlooked, but its
risky because you never know when your best ads will get blocked, or if
they decide to charge double for the same ads. Youre at the mercy of
another person's business.
i.
Remember Yellow Pages?
1. There were a lot of businesses who got all their customers
from yellow pages. This is the same thing as paid search.
2. 7-10% - Good
3. Over 10% -> Risk
4. Over 20% -> High Risk
d. Referral Traffic - Groupon, Living Social, Yelp, other partners that youve
worked deals with, and PR wins, etc. These should all be are all lumped in
to referral traffic.
i.
I dont want to confuse referral traffic that you have built in to your
site, with the referral traffic that comes from other websites. If you
have a functioning referral program that youve built either in-house,
or on a referral platform like Curebit, I would lump that in with the
Owned traffic.

For Your Free Analytics Audit, contact us today at:


(877) 259-2296 ext 702 or help@ecommerceinfluence.com


1. One thing to note: When categorizing your referral revenue,
make sure to go deeper and determine what part is coming
from your referral program, what part is coming from
a. Your Referral Program (Owned)
b. Referral Websites (Earned)
c. Miscategorized (these will go to other categories)
e. Other
6. Owned Channels
a. Direct - These are your most valuable visitors, and you need to nurture
them. If you can reach about 40% of these types of visitors, you are doing
well.
i.
10% - 20% -> Underutilized
ii.
20 - 30% -> Great!
iii.
Over 30% -> Over Utilized
b. Referral Programs - In house referral programs are some of the best
ways to drive owned revenue. In many ways, the health of your business
can be determined by your referral program. If your customers are happy
and referring, its a great sign for your business and it probably means that
other channels are going to be very profitable for you.
i.
Bonobos drove 25% of their revenue in 2012 through their referral
program. Its one of the healthiest things you can do for your
business, and it gives all the value to your customers, not Google or
Facebook.
1. Under 10% -> Under utilized
2. 10-15% Great
3. Over 15% -> Over utilized
c. Email - Email is one of the best ways to
i.
Under 5% - Underutilized
ii.
5-7% - Great
iii.
Over 7% - Over Utilized
d. Other -
7. Two examples of balanced and unbalanced websites
a. Unbalanced Site

b.
i.


As you can see this website is heavily reliant on earned traffic.
They rely on SEO and paid search to drive their business. Almost

For Your Free Analytics Audit, contact us today at:


(877) 259-2296 ext 702 or help@ecommerceinfluence.com


75% of their revenue comes from earned traffic, meaning they could
at a high-risk level for algorithm updates.
ii.
If this website was looking to drive more sales, the first places I
would look would be on the owned side, particularly through
referrals.
c. Balanced Site

d.


i.
This website is doing a lot right. They are at almost a 50-50 mix
between earned and owned traffic, which is a terrific balance. They
could look at these numbers and determine if they have an
opportunity to win with paid search. We can see here that there is
some room to grow in the Organic and Paid search category.
8. Step #5: Find Out How Your Website Stacks Up
a. Add all the revenue from your Earned and Owned Categories to determine
your total.
b. Ideally youll find yourself in a position where your balance is close to
50-50. If its not, you have some work to do.
c. Even if you find that your balance is 50-50, that doesnt mean youre out of
the woods yet, it could mean that youre still unbalanced in certain
categories and could be leaving lots of money on the table.
d. Take a look at the following example:

e.

f. This example is very close to a 50-50 balance, but its balanced in ways
that are not healthy. They are leaving a lot of money on the table here,
and are overweight in some areas that are leaving them dangerously
exposed to pricing changes. This person either sucks at SEO, or has
something fundamentally wrong with their website that is leading them to
pay for over 37% of their revenue.
g. Ive labeled each category with colors that correspond to their health.
i.
Green = Good
For Your Free Analytics Audit, contact us today at:
(877) 259-2296 ext 702 or help@ecommerceinfluence.com


ii.
Yellow = Risk
iii.
Orange and Red = High Risk
9. Your Website Health:
a. Remember, this is only a framework to see if you have an unbalance.
Before you spend thousands of dollars on PPC, SEO, or email marketing,
you should have a professional look at this data and make sure its set up
correctly, and find where you can make some improvements.
b. Youre not going to grow consistently without a solid, balanced strategy. Its
just not going to happen.
c. Your goal is go get as many people from the Earned category transferred
over to the Owned category, that means that youre doing some things
right and that people are coming back to your business.
10. What Should You Do Now:
a. If your website is looking like the unbalanced version above, its time to
have a conversation with us about your digital marketing strategy.
b. The first step towards getting a better balance, is to build a Digital
Marketing and Measurement Model. And then you can start to gradually
pulling together a traffic balance, and build new revenue streams.
c. We can take care of everything to get it set up, and then he can help you
build out a plan to take advantage of the revenue you are missing.

1. For a free analytics audit, contact us at:
a. Phone - (877) 259-2296 ext 702
b. or email: help@ecommerceinfluence.com

For Your Free Analytics Audit, contact us today at:


(877) 259-2296 ext 702 or help@ecommerceinfluence.com