{"id":605,"date":"2010-04-21T23:51:33","date_gmt":"2010-04-22T04:51:33","guid":{"rendered":"http:\/\/seoly.com\/blog\/?p=605"},"modified":"2010-04-21T23:51:33","modified_gmt":"2010-04-22T04:51:33","slug":"whats-the-bottom-line","status":"publish","type":"post","link":"https:\/\/seoly.com\/blog\/2010\/04\/whats-the-bottom-line\/","title":{"rendered":"What&#8217;s The Bottom Line?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-612\" title=\"the-bottom-line\" src=\"http:\/\/seoly.com\/blog\/wp-content\/uploads\/2010\/04\/the-bottom-line.jpg\" alt=\"Original artist: http:\/\/www.flickr.com\/photos\/stopdown\/1952930973\/\" width=\"179\" height=\"250\" \/>At the end of the a day, what do you care about?\u00c2\u00a0 Is it number of sales, new feed subscribers, or just overall revenue?\u00c2\u00a0 It&#8217;s all dependent upon what your values and end goals are.\u00c2\u00a0 Maybe it&#8217;s a mix of factors that you&#8217;re concerned with, and in that case evaluating and improving upon them becomes much more complex.<\/p>\n<p>For the sack of simplicity, let&#8217;s say your end goal is driving up revenue.\u00c2\u00a0 There are a lot of factors that can cause it to grow that includes everything from increasing the cost of a product to improving the amount of organic traffic.\u00c2\u00a0 The trick is understanding how changes you implement actually make a difference.\u00c2\u00a0 In order to distinguish what&#8217;s happening it&#8217;s best to only make a single alteration at a time.<\/p>\n<p><!--more-->I decided to up the price of a product from $6 to $9, and here&#8217;s the results:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-606\" title=\"pre-change-conversions\" src=\"http:\/\/seoly.com\/blog\/wp-content\/uploads\/2010\/04\/pre-change-conversions.jpg\" alt=\"Pre-change goal conversion data 6.23%\" width=\"620\" height=\"269\" srcset=\"https:\/\/seoly.com\/blog\/wp-content\/uploads\/2010\/04\/pre-change-conversions.jpg 620w, https:\/\/seoly.com\/blog\/wp-content\/uploads\/2010\/04\/pre-change-conversions-300x130.jpg 300w\" sizes=\"auto, (max-width: 620px) 100vw, 620px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-607\" title=\"post-change-conversions\" src=\"http:\/\/seoly.com\/blog\/wp-content\/uploads\/2010\/04\/post-change-conversions.jpg\" alt=\"Post-change goal conversion data 4.95%\" width=\"620\" height=\"269\" srcset=\"https:\/\/seoly.com\/blog\/wp-content\/uploads\/2010\/04\/post-change-conversions.jpg 620w, https:\/\/seoly.com\/blog\/wp-content\/uploads\/2010\/04\/post-change-conversions-300x130.jpg 300w\" sizes=\"auto, (max-width: 620px) 100vw, 620px\" \/><br \/>\nTime to do some calculations&#8230;<\/p>\n<p style=\"padding-left: 30px;\">Average value prior to change: 0.0623<br \/>\nAverage value after change: 0.0495<br \/>\nStandard deviation of change: 0.0161<br \/>\nNumber of sales since change: 377<br \/>\nStudent&#8217;s T-Value: 15.46<br \/>\nProbability the change is due to chance: 0.00%<\/p>\n<p>Well all that means is that the increase in product cost did affect the conversion rate.\u00c2\u00a0 Big surprise, right?\u00c2\u00a0 And here&#8217;s the final figures:<\/p>\n<p style=\"padding-left: 30px;\">Estimated monthly revenue pre-change: $618<br \/>\nEstimated monthly revenue post-change: $927<br \/>\nEstimated increase in overall monthly revenue: $309<\/p>\n<p>That may look all well and good, but it&#8217;s not reality.\u00c2\u00a0 For this example site, traffic actually dropped to 1\/5 of its original level, which means slightly under 1\/3 of its original revenue.\u00c2\u00a0 The reason for the drop is a decreasing need for the product and some competition popping up here and there.\u00c2\u00a0 The good news, at least for you, is that this example is still relevant.<\/p>\n<p>When you&#8217;re looking at your goals and evaluating shifts, it is essential to ensure that those changes are significant.\u00c2\u00a0 It&#8217;s also important to account for the other effects your alterations may have had.\u00c2\u00a0 If you have multiple types of conversions on your website, how was each of them affected?\u00c2\u00a0 Which one do you value more?<\/p>\n<p>Take a step back, reexamine your bottom line before and after you&#8217;ve made a revision, and confirm the significance of a changes impact.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At the end of the a day, what do you care about?\u00c2\u00a0 Is it number of sales, new feed subscribers, or just overall revenue?\u00c2\u00a0 It&#8217;s all dependent upon what your values and end goals are.\u00c2\u00a0 Maybe it&#8217;s a mix of factors that you&#8217;re concerned with, and in that case evaluating and improving upon them becomes [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[134],"tags":[139],"class_list":["post-605","post","type-post","status-publish","format-standard","hentry","category-marketing","tag-conversions"],"_links":{"self":[{"href":"https:\/\/seoly.com\/blog\/wp-json\/wp\/v2\/posts\/605","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/seoly.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/seoly.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/seoly.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/seoly.com\/blog\/wp-json\/wp\/v2\/comments?post=605"}],"version-history":[{"count":13,"href":"https:\/\/seoly.com\/blog\/wp-json\/wp\/v2\/posts\/605\/revisions"}],"predecessor-version":[{"id":621,"href":"https:\/\/seoly.com\/blog\/wp-json\/wp\/v2\/posts\/605\/revisions\/621"}],"wp:attachment":[{"href":"https:\/\/seoly.com\/blog\/wp-json\/wp\/v2\/media?parent=605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/seoly.com\/blog\/wp-json\/wp\/v2\/categories?post=605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/seoly.com\/blog\/wp-json\/wp\/v2\/tags?post=605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}