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%.
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Effect On Turnover When Increasing Conversion Rate
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|||
|
Visitors Per Month
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4500
|
4500
|
4500
|
|
Average Order Value
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£80
|
£80
|
£80
|
|
Conversion Rate
|
1%
|
2%
|
3%
|
|
Sales Per Month
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£3,600
|
£7,200
|
£10,800
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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.
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Effect On Cost Per Acquisition When Increasing Advertising Spend
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|||
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Visitors Per Month
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4500
|
9000
|
13500
|
|
Average Order Value
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£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 an enquiry form
