This little demo shows how improving the conversion rate by small amounts can make a big difference.
Little figures have a big impact
What’s the difference between 1 percent and 2 percent conversion rate?
- Importance of Conversion Rate – small changes make a big difference
- The average new site converts at 0.5%
- A Conversion Rate Example: At .5% the margin generates £150
- One extra enquiry per 200 visitors doubles the return
- Is the difference 100% ? Er, Nope..
- All wrong, we forgot something
- We need to take costs into account
- Taking the costs off, changes the maths
- At .5% conversion, we lose money
- The difference between 1% and 2% is 400%
- When we know it works, put more money in
- Conversion Rate is a proxy for Profitability
What does this mean?
- Writing lots of weak content can still lose you money, however much you write
- Worse, getting orders is seductive. Losing money slowly is a hard thing to kick, but if we can just improve that conversion rate we’ll be ok.
How do we improve the conversion rate?
There are several different things that have a conversion rate, the Keywords, the Advertising and the Page itself. They can all be measured separately.
- Split and measure the traffic in smaller keyword groups, a lot of analytic packages don’t make it clear that short keywords are averages of thousands of keywords
- Match the page to the visitor need
- Cater for different types of visitors
- Answer more of their questions - do let us know if you have any
Notes: The small print
- SEO visitors do cost money, be it contractors or time involved, or in content. In new marketing, you pay in one way or another for people’s attention.
- Some keywords never convert, and some keywords always convert, many are in between
- This ignores the lifetime value of the customer. It may be a viable strategy to lose money on the first deal (I can’t believe we just said that, but it’s true!)