subject: What Is Conversion Optimization? - A Unique Online Marketing Tool [print this page] What Is Conversion Optimization? - A Unique Online Marketing Tool
Most of us hear about search engine optimization, social media optimization but rarely did we come across the terms like "Conversion Optimization". Conversion optimization as its names suggest is the process of increase your conversion rate. Let me explain this with some examples:
Let assume your website is generating 3000 visitors per day, it is a quite established website, and per day with conversion of 0.50% the website is generating 15 sales. You find yourself very happy. Somehow, you come across to know that your competitor website generating just 1200 visitors per day. You compare traffic and realize that you are doing great wrt your competitor. However, latter you come across to know the competitor company is generating much more money than you are. I guess you are wondering how this can be possible. Let me explain further.
Let assume, per sales you generate net profit 50 and so per day your site generate 50 x 15 = 750 you come to know that the competitor company generating per day 1800, interesting part is that there per product after sales profit is also 50. How this can be possible? There traffic is 40% of yours and they are generating 120% extra money. Interesting isn't it?
Now let us back calculate the competitors earning and the traffic ratio. The above explanation states that your competitor generating 1800 money from 1200 traffic, so its means that they are generating 36 sales in 1200 traffic ( 1800 / 50 = 36). Means, in 1200 they are generating 36 sales so in 100 traffic they are generating 1.5 sales. Therefore, the conversion rate for your competitor site is 1.5%.
You see although your site is generating so much traffic but generating so less revenue wrt your competitor site only difference is that your site conversion rate is 0.50% and your competitors 1.50%. If your site generates 1.50% conversion rates, how much sales you can generate per day. 3000 x 1.50% = 45 sales. Means 3 times more than your current sales and as per revenue per day 45 x 50 = 2250. Therefore, if we compare with your current site status then everyday you are loosing 2250 - 750 = 1500.
The process to increase the conversion is named as "conversion optimization". Most of us always talk about traffic but rarely we discuss or think about conversion optimization, which is really a crucial aspect to think. To know more take professional advice or you can mail me as well.
