The Impact of Website Conversion Rate
With our lead value in hand, let’s take a look at your website conversion rate and how that information can further empower you to make decisions to improve your website performance.
In our previous post we used the following numbers as our example for calculating lead value at $200:
Sales Conversion Rate: 20%
Average Sale Value: $1,000
Now let’s add one more hypothetical number to the equation by saying that our website conversion rate is 6%.
When we refer to “website conversion rate,” we are looking at how frequently visitors take the action you want them to take. Here we are specifically talking about lead submissions, but other conversion points could be newsletter signups or straight e-commerce sales. In other words, for every 100 site visitors, 6 of them are doing something that you have determined is valuable. In the case of our example, we know that for every 100 visitors there are 6 leads being submitted. And since we pulled out the abacus and figured out what a lead is worth in our earlier post, we know that those 6 leads created $1,200 in value for the business.
(By the way, if your website conversion rate is 6%, it is actually doing pretty well. Not crushing it, but not wallowing in pity either. There are plenty of businesses who would love to have a 6% conversion rate.)
But what if we can find ways to improve the site’s conversion rate? For example, what would happen if we moved the “Request a Quote” form up higher on the page? Or if the form is only on the contact page, let’s consider placing a form on every page. An adjustment this simple could result in a website conversion rate increase of 1-2%.
(Again, I'm working in the land of hypotheticals and examples, but we've worked with plenty of clients who've seen results better than this from such simple changes.)
Now, armed with a 7-8% conversion rate, for every 100 visitors we can expect 7 or 8 leads, which translates to $1,400-1,600 in value. At a smaller scale that doesn’t seem like an overwhelming improvement, but let’s add some zeros.
10,000 visitors at 6% = $120,000
10,000 visitors at 8% = $160,000
$40,000 in added revenue by adding a form seems like a pretty worthwhile change to make from where I sit. Especially if making that change only costs you, say, $3,000 in design and development costs. For some of you a change like that would only require 30 minutes. Even more compelling.
That Extra Step
Before you get too carried away thinking about what size TV you can purchase with that added $40,000, consider instead that now you’ve created more revenue by simply tweaking the website, which could mean you’re able to be more competitive in your marketing efforts. That extra $40,000 could be invested in pushing competition out of the paid search space, continuing to find website tweaks (higher conversion rate!), or looking for ways to streamline your offline sales close rate, perhaps by investing in a more robust email nurturing program. After all, if you can improve both the website and the offline sales conversion rates, then you’re talking about exponential growth. Up and to the right.
The options are out there. Optimize away!
As we’ve said before, we love improving conversion rates. So if you feel your website’s conversion rate could use some help, please let us know. We’d be glad to speak with you about how we can help. Call us at 615-669-9728 or send us a note to start the conversation.