Success for me is now defined as consistent growth on a daily basis. I'm not looking at just monthly, weekly and daily metric reports, but breaking down conversion trends and user analytics several times a day. I firmly believe that in the online world, keeping on top of daily measurement is the key to optimizing your online marketing channels.
My previous column, "Moneyball, Monetize Fantasy Sports," briefly touched on the monetization funnel and how just getting users to show up at the front door is not good enough in today's world. As a marketer, you need to make sure you are maximizing revenue by leveraging qualified users to move through the funnel.
Obviously, I am always trying to lower my cost per action (CPA), but I will always pay more to acquire a more engaged and qualified user because I will win in the long term. I know that by acquiring a high level of engaged users, one will create value for major sports brands and agencies that purchase premium sponsorships.
If you can create the right platform online that attracts high-quality online sports fans, you have gold. The sports and gaming markets are supported by sponsors and advertisers paying billions of dollars for engagement with these qualified users.
Finding qualified users first means defining their characteristics. There are several, but I specifically look for:
• Engagement Simply put, I don't go after a "hit and run" user. Just visiting the site once results in a high bounce rate and doesn't provide much value. I'm always paying close attention to their exits and what made them leave and how I can get better at keeping my users engaged. It is important to avoid spending empty dollars on getting traffic to the site. Acquiring users that visit multiple pages and spend more time interacting throughout the site should always be the goal. Research to identify channels and distribution outlets that will help meet this goal is a very important piece of the pie.
• Cash / Money What's better than your users putting down their credit card on your site? As mentioned in my previous article, monetizing your users is key. Whether it is through premium memberships or micro-transactions, if they have money to spend, you want them to spend it on your site. With that said, it's your job to create great value and really provide a compelling product or service that your users would want to spend their hard earned money on.
• Champions There's nothing better than your users becoming the champions of the brand. I strive to constantly improve our viral loop, so the goal is to find users who will invite their friends and use social networks like Facebook and Twitter to spread the word. If you can obtain these characteristics, your viral loop will soar and your CPA will significantly decrease.
Now, where do you find the user who possesses the magical combination of all these characteristics? Good marketers spend a lot of time researching how to find the right user. Once you identify the traits and characteristics you are seeking, you need to run test after test, do your homework and identify your demo.
Take the time to survey your audience and listen to what they tell you. The next step would be to test your tactics (search engine marketing, affiliates, email marketing, distribution, etc). Seeing what works for you to drive the highest-quality user and where they come from is the end goal. Take the time to analyze where your highest-quality users are coming from and push those channels to the max.
Defining the right characteristics, doing your research and watching where the quality users are coming from will eventually lead to great success and increase your value to potential sponsors and partners.
For me, it's the best feeling in the world as an online marketer when you acquire quality users, back into your projected CPA and crush your goals. Are there any characteristics I missed that you use to measure quality users? I'd love to hear from you.