How Much Lemonade Do You Sell?
I love to play tycoon games. Lemonade Tycoon, Theme Park Tycoon, Zoo Tycoon, you name it and I’ll play it. I love it so much, until I started to think analytic as one big tycoon game due to the fact that you can do measurement and also predict/monitor your online ROI (return of investment).
Within one of my favorite analytic tools, we were able to measure ROI. Within this tools, ROI is explained as (Revenue – Cost)/Cost and is expressed in percentage. Am I starting to get you frowning? [Don’t! or I was the one you should blame when you need a botox injection in your mid 30’s]. Revenue usually taken from the value you set for your online goal (non e-commerce site) or your e-commerce revenue. Whereas cost is the number of money you spent on that particular campaign. This ROI can be tracked manually at the end of certain period or you can also have it automated within your analytic tools (depends on your tools ability).
Although perhaps you’ll go down a different ways on measuring your online ROI, several things would maintain the same. For example, an ROI of 0% means that your revenue earned in specific period of time is the same as the amount you spend while trying to achieve your revenue [this translated as: you don’t gain any profit, but at least you are not suffering any lost] 100% ROI means you get double what you spent [huraaa…peeps, it’s time to ask for those performance bonus] and thus (-)% means that you somehow lost and probably still owed someone in the process.
This 0%, 100% or even (-) 10% is where the lemonade tycoon game kicks in. It’s basically the same principle. If you wanted to sell lemonade, you have to calculate all the operating expenses; promotion plus ingredients and then you can calculate how much you will be receiving in the end of the day. Simple isn’t it? And the online world will or might I say can, provide you with that kind of calculation. Back to the numbers, if you think 100% of ROI good, then you’d probably mistaken, because in several cases the ROI can reach up to 1000%! And that is just to gain a break-even point.
Dig deeper on the analytic subject. By calculating how much lemonade you sell, you can also track down which online activity is the most beneficial for you [but first, do yourself a justice and choose yourself a fairly good analytic tools]. Make sure you measure your ROI, or at least your goal value. When you do measure it, you can actually improve your online campaign ability to generate more or higher income. For example you can monitor which keyword perform better than the other, or perhaps which banner contribute to the best selling product, or which product is actually your greatest hero.
Use ROI in analytic not solely based on real ROI measurement, but use it to improve! This is peeps, the best thing about analytic, not the result, not the present ROI but the opportunity for you to really improve your online campaign. So yes, please let’s all play lemonade tycoon the analytic style.
image: christinas-home-remedies.com
