Website Conversion: What's in it for You?
Welcome to the latest edition of the Inside Edge--your
monthly report on Internet trends and advancements that can turn
your business into a more profitable e-Business! This month we
take a look at website conversion and how your business can
benefit from setting measurable goals and objectives.
After you read this month's edition, contact your WSI
Internet Consultant to find out how to put this valuable information
to work for your business right away.
Thanks for reading!
What is Website
You keep hearing WSI reinforce the
need for businesses to have successful
website conversion, conversion ratios and ROI measurement
strategies. But what does this really mean and what's in it for you? Well, quite simply,
website conversion is having visitors come to your website and
encouraging them to take an action such as making a purchase online or
signing up for your online newsletter. By doing so, they have
converted into a measurable online relationship with you.
Now, in order to
calculate your conversion ratio, just divide the number of "converts" by the total number of visitors. To calculate your ROI
take your total sales revenue derived from your "converts" and
subtract the total cost of your campaign. Now before you run off and
start calculating your conversion ratios you need to ask yourself
one very important question: What "conversion" action(s) should
visitors to your website take which will meet your business
A visitor that completes an action you want them to take.
Conversion Ratio = Converts/Total Visitors as a
ROI = Total Revenue from
Converts – Cost of the campaign
Setting Measurable Goals
Before any conversion tracking can
take place, your website goals and measurable objectives need to be
established. These will greatly assist you in measuring your
website's future success or failure. Your goal is what you want your
visitors to do in terms of an action, while your objective is how
you define your success or failure.
The Internet has made measuring your
online marketing results extraordinarily easy, compared to
traditional offline marketing tactics. Your website's goal will
likely fall within one of the following four categories:
Lead Generation – your goal is to
gather potential customers' contact information through your
website. These are items such as names, email addresses and
other pertinent information from people who are interested in
your products or services in order for you to cultivate a
relationship with them.
Sales – your goal is to generate
sales via your website (i.e. e-commerce). So here you are looking
for customers that pay with a credit card (or other online
payment methods) for your products/services
Cost Savings – your goal here is to
reduce costs, usually in the form of offline activities which
you can automate online; such as e-learning or automated data
backup of your computer files.
Customer Service – your goal here
is to reduce costs and make it easier to service customers – this could entail items such as online forms, self-serve
options or enhanced FAQs (Frequently Asked Questions)
It's very common to have multiple
goals for your website. However, bear in mind that the primary message you
want to communicate online may be different than your secondary
messages. For example, the primary message on an e-commerce website may be for customers to make more purchases online but the secondary message could be about the brand (as communicated through your logo, content and creative design). The two goals here would be to achieve more sales and enhance brand loyalty.
What is a Measurable Objective?
So now that you've established your
goals you need to define a measurable objective. What is a
measurable objective? Quite simply, a measurable objective is a
number. It's a figure defining an achieved goal. For example, a
measurable lead generation goal is to generate 250 new prospects per
year. While a sales goal could be 50 online sales per month.
It is important to note that there is
much more to setting a realistic objective which includes examining
trends over time. Your WSI Internet Consultant can assist you in
setting realistic and measurable objectives; but in the meantime,
here are some quick formulas which can help you in measuring your
Total Conversions / Total Visitors (as a
Cost Per Visitor =
Total Website Spend / Total Visitors (as a dollar
Cost Per Conversion =
Total Website Spend / Total Conversions (as a dollar
Conversions required to break even or turn a profit
Total Revenue from Converts – Cost
of the Campaign
Simply put, you want to reduce your
costs per visitor and cost per conversion, by increasing your
conversion rates and
"What is it you really want your
visitor to do when they come to your website?"
Let's look at the following scenario:
Let's assume you sell hot tubs online
and spend $1000 per month on Internet marketing (i.e. PPC,
development costs, etc.) and attract 2000 visitors per month and
receive 10 sales per month. Your metrics would look something like
Cost of Campaign =
$1000 in Month 1
Average Order Value (AOV) =
Conversion Rate = 10/2000 =
Cost Per Visitor = $1000/2000 =
Cost Per Conversion = $1000/10 =
Objective = Break even number is $1000 in
If your campaign generated $50,000 in
your ROI is $49,000
Once you identify your conversion
figures it makes it easier to focus on your business objectives – by
taking action to set goals and measurable objectives you are one step
closer to achieving online success.
We've only just
begun to scratch the surface of website conversion. To learn more,
speak with your WSI Internet Consultant today about the power of
conversion tracking and the insights it will provide you on how
visitors interact with your website.
WSI, headquartered in
Toronto, Canada, is ranked the #1 Internet Services Business in the
world. With systems that have been developed, utilized and proven by
over 1000 Internet Consultants in 87 countries worldwide, WSI
delivers thousands of e-Business solutions to small and medium-sized