tag:blogger.com,1999:blog-32202893.post4411722738495151510..comments2023-10-18T08:32:17.510-07:00Comments on Kevin Hillstrom: MineThatData: Optimization: FAIL!Unknownnoreply@blogger.comBlogger6125tag:blogger.com,1999:blog-32202893.post-73140361320334475372010-03-31T14:47:59.853-07:002010-03-31T14:47:59.853-07:00Absolutely Kevin - I'm not the only one who en...Absolutely Kevin - I'm not the only one who enjoys the refreshing look on this data and the metrics behind it - and many of the overlooked ones (like this) you bring to light. Keep 'em coming =)Kevin @ Blue Acornhttp://www.twitter.com/blueacornnoreply@blogger.comtag:blogger.com,1999:blog-32202893.post-5950773752117884732010-03-31T13:56:36.123-07:002010-03-31T13:56:36.123-07:00A common phrase I hear when I visit folks is "...A common phrase I hear when I visit folks is "... if we don't drive sales in the next 30 days, we won't be here in a year."<br /><br />That may be true. Of course, that is a conditional statement, conditional on the fact that scorching the Earth for conversion over the past five years led to a problem where if sales aren't driven in the next 30 days, then folks won't be in business.<br /><br />And Kevin @ Blue Acorn: If you are a long-time reader, then you understand the spirit of this post and why I'd encourage the masses to try another metric. It goes without saying that conversion rate and profit per unique visitor intersect, hopefully resulting in an overall increase in profit dollars, another metric that so few marketers and analysts actually measure.MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-70810994160818872992010-03-31T13:09:28.053-07:002010-03-31T13:09:28.053-07:00Kevin, while I enjoy and applaud your continued th...Kevin, while I enjoy and applaud your continued thinking "out of the box" on ways to analyze things - this one seems to fall short a bit. Because if you optimize around profit per unique visitor as the primary criteria, then you can just raise prices across the board, have less people buying, but hey, profit per unique visitor is way up.<br /><br />While it is an important KPI to optimize, isn't it really a counterbalance to conversion rate? If you raise one, the other seems to go down, and vice versa. <br /><br />It would seem to me, that there is an optimal ratio of conversion rate to average profit per visitor value - at which point those graphs intersect, that should really be the focus. Not just one metric or another.Kevin @ Blue Acornhttp://www.twitter.com/blueacornnoreply@blogger.comtag:blogger.com,1999:blog-32202893.post-39900757121866727222010-03-31T13:01:19.522-07:002010-03-31T13:01:19.522-07:00You're right that option 2 is best for the org...You're right that option 2 is best for the organization. <br /><br />But option 1 takes less time. And many decision makers today are so focused on the here and now that they find it difficult to pursue longer term strategies.<br /><br />It used to 5 years+, then 3 years, then 1 year and then 90 days. Now the vision horizon has shortened to 30 days or less! Too much focus on the shareholder and not other critical stakeholders like customers.Ted Grigghttp://www.dmcgblog.com/journal/noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-56291022306509790042010-03-30T17:47:02.153-07:002010-03-30T17:47:02.153-07:00Keep thinking!Keep thinking!MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-39106060513361494512010-03-30T11:49:24.966-07:002010-03-30T11:49:24.966-07:00I am so glad I found you online, But at the same t...I am so glad I found you online, But at the same time you make me think too much. Love it man keep it comingAnonymousnoreply@blogger.com