What is Conversion Optimization – a Unique Online Marketing Tool to increase ROI

Most of us usually hear about search engine optimization and social media optimization but rarely do we come across terms like “Conversion Optimization”. Conversion optimization as its name suggests is the process of increasing your conversion rate. It would be easy to understand with some examples:

Let us assume, your website is generating 3000 visitors per day, it is a well-established website, and every day with conversion of 0.50%, the website is generating 15 sales. You find yourself satisfied with the same. Somehow, you came to know that your competitor’s website generates just 1200 visitors per day. You compare traffic and realize that you are doing far better than your competitor is. However, later you come across the fact that the competitor company is generating much more money than you are. I guess you are wondering how this can be possible. Let me explain it further.

Now Let us assume, per sales you generate net profit £50 and so your site generates £50 x 15 = £750. You find that the competitor company is generating £1800; interesting part is that there per product after sales the profit is also £50. How is it possible? There traffic is 40% of yours and they are generating 120% extra money. Is it Interesting?

Now let us go back calculate the competitors earning and the traffic ratio. The above explanation states that your competitor is generating £1800 money from 1200 traffic, so its means that they are generating 36 sales in 1200 traffic (£1800 / £50 = 36). It means that, in 1200 traffic they are generating 36 sales so in 100 traffics they are generating 1.5 sales. Therefore, the conversion rate for your competitor’s site is 1.5%.

You can see although your site is generating so much traffic yet it is generating so less revenue with respect to your competitor site only difference is that your site conversion rate is 0.50% and his site’s conversion rate is 1.50%. Suppose if your site generates 1.50% conversion rates, you can generate 3000 x 1.50% = 45 sales. It means 3 times more than your current sales and as per revenue 45 x £50 = £2250 per day. Therefore, if we compare it with your current site status then everyday you are loosing £2250 – £750 = £1500.

The process to increase the conversion is “conversion optimization”. Mostly we talk about traffic but rarely we discuss or think about conversion optimization, which is really a crucial aspect to think. To know more you can take professionals advice or you can mail me as well.