Conversion Optimisation

Targeted advertising should lead to targeted visitors and conversions? However all to often the average site converts into leads or sales at about 1 or 2%.

In order to double sales you could double your advertising budget forever. However a more effective method would be to concentrate on raising your conversion rate by 100% within six months... this may not be as hard as it may sound if you are currently only converting at 1 or 2%.

Effect On Turnover When Increasing Conversion Rate
Visitors Per Month
4500
4500
4500
Average Order Value
£80
£80
£80
Conversion Rate
1%
2%
3%
Sales Per Month
£3,600
£7,200
£10,800

 
Too many agencies talk about hits, bytes etc. What you should really be talking about at board room level is cost per acquisition.
Take a look at the cost per acquisitions on the following two tables. The first looks at increasing sales by increasing advertising spend. The second looks at increasing sales by increasing conversion rates.

Effect On Cost Per Acquisition When Increasing Advertising Spend
Visitors Per Month
4500
9000
13500
Average Order Value
£80
£80
£80
Number Of Orders
45
90
135
Advertising Spend
£800
£1,600
£2,400
Conversion Rate
1%
1%
1%
Sales Per Month
£3,600
£7,200
£10,800
Cost Per Acquisition
£18
£18
£18

 

Effect On Cost Per Acquisition When Increasing Conversion Rate
Visitors Per Month
4500
4500
4500
Average Order Value
£80
£80
£80
Number Of Orders
45
90
135
Advertising Spend
£800
£800
£800
Conversion Rate
1%
2%
3%
Sales Per Month
£3,600
£7,200
£10,800
Cost Per Acquisition
£18
£9
£6

 
Once conversion rates and cost per acquisitions are optimised then you can increase your advertising budget and truly dominate your competition.
All businesses are different so conversion could range from:
  • Make a purchase
  • Request a brochure
  • Make an enquiry
  • Register or sign-up
  • Phone or visit a store
  • Order online
 
We track in a number of ways. For instance sales should be tracked by:
  • Number of sales
  • Total Sales Values
  • Average Spend Per Customer
  • Average Spend Per Visitor
  • Conversion Rates
 
We also track the above values down to keyword groups. This would enable us to spot keyword groups which are more or less profitable than others in order to decide on future targeting.
 
For more details on Conversion Optimisation please call or complete a Project Enquiry Form.

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