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Difference between 1% & 2% is 400%
 

Difference between 1% & 2% is 400%

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Small numbers make a big difference to web marketing

Small numbers make a big difference to web marketing

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    Difference between 1% & 2% is 400% Difference between 1% & 2% is 400% Presentation Transcript

    • The importance of Conversion RateWhat’s the difference between 1% and 2% (Answer: 400%)
    • WHAT WE FIND IS… NEW SITE AVERAGE 1 deal per 200 visitors Conversion Rate Of 0.5%
    • Real Example: Lighting Company200 visitors Sell 1 Chandelier ‘profit margin’ £150 1 Sale Conversion Rate Of 0.5% = £150
    • CHARTING CONVERSION RATES Conversion Rate 900 PROFIT 0.5% = £150 Profit 600 Profit 300 150 ProfitCONVERSION 0.5% 1% 2% 3% RATE 1 deal 2 deals 4 deals 6 deals
    • The DIFFERENCE Between 1% and 2%? 900 = 100% Profit 600 Profit 300 150 ProfitCONVERSION 0.5% 1% 2% 3% RATE 1 deal 2 deals 4 deals 6 deals
    • Incorrect! 900 = 100% Profit 600 Profit 300 150 ProfitCONVERSION 0.5% 1% 2% 3% RATE
    • Traffic Costs Money (even SEO)The REAL difference between 1% and 2%?
    • CHANGING THE MATHSExample Cost Visitor cost =£200per visitor = £1 Sell 1 Chandelier 1 deal per 200 ‘profit’ of £150 visitors 0.5% = LOSE £50
    • APPLY THE TRAFFIC COSTS 7000.5% Conversion = £150Less cost of traffic 400Lose £50 per deal Cost £200 100 -50CONVERSION 0.5% 1% 2% 3% RATE
    • REAL DIFFERENCE BETWEEN 1% and 2% 700 = 400% Profit 400 Profit COST 100 £200 -50CONVERSION 0.5% 1% 2% 3% RATE
    • SPEND AS MUCH AS YOU CAN ONCE PROFITABLE? 7000 Profit = Make 10 x more 4000 ProfitSpend 10x more COST 1000 £2000 -500CONVERSION 0.5% 1% 2% 3% RATE
    • HIGH CONVERSION = Profitability