In this insight we provide an overview for helping you to decide what area of your sales focused website you should focus on next – Traffic or Conversions ?
The good news is that from a big picture perspective you really only have 2 choices :
- Traffic generation campaigns (eg. PPC and SEO) or
- Conversion optimisation techniques to help improve your conversion rates
(Whilst you could also elect to do a combination of both, for the purpose of this insight we will keep it simple).
To define which of these two areas you should focus on first you have to understand and apply the traffic x conversion = profits formula to your website.
Traffic being the number ofvisitors you need to attract to your site and conversions being whatever action you want those visitors to take once they get there.
- Access to your website stats or Google Analytics. If you haven’t set up your Google Analytics or are not sure how to find these stats then that’s your next step – set it up or ask your hosting provider or current developer to assist.
- You have determined your conversion objectives . Ie what action you want your visitor to take once they get to your site. Some typical examples are :
- Make a phone enquiry
- Complete a form
- Place an order
- Subscribe to your mailing list or blog
- Capture feedback or email addresses
Determine your “Gap” or Benchmark
You cant decide what area to focus on next without having a picture of how your are currently performing against what you actually want to achieve. You cant know how much effort or work will be involved until you can determine the “gap” between where you are now and where you want to be.
Apply the formula to your business
The stats will provide useful information around the level of traffic/visitors, where they have come from and what they do when they get to your site. Knowing and then tracking yourconversion objectives then allows you to define the formula as it relates to your business. More importantly it allows you to determine your conversion rates. The end result is you have been able to take a big picture view and based on some industry benchmarks or your own business objectives you are now in a much better position to determine what area to focus on next.
Conversion rate example
Let’s take a moment to provide a quick guide on how todetermine your conversion rate. For this exercise we are going to keep things simple and have phone enquiries as your main conversion objective. Let’s assume youare generating 300 visitors to your site a month and you know that each month you are currently generating 3 phone enquiries.
Your currentconversion rate = 1% (ie 300 visitors / 3 enquiries & expressed as a %)
Do this now for your business and determine your current conversion rate.
Traffic or Conversions ?
The average website conversion rate is 1.8% (for this insight we shall also use that as your business benchmark) so once you have determined what your rate is how does it compare against this benchmark. The answer to that then provides you with the following options :
- If your current website conversion rate is below 1.8% then in the short term it might be best to focus on conversion optimization techniques. Driving traffic costs money, time and resources so do ensure you are happy with your conversion rate before investing heavily in traffic campaigns.
- If your conversion rate is above 1.8% then in the short term it might be best to focus on traffic generation tactics. By turning up the level of traffic and maintaining your conversion rate you will automatically get more conversion actions ie phone enquiries.
Obviously, it can get a lot more involved but we hope the above has been able to provide you with a big picture guide and a great place to start. For a more detailed analysis and discussion please feel free to give us a call or visit our site www.webenhancer.com.au for more tips and tools.
All the very best