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           ...
Real Example: Lighting Company200 visitors                   Sell 1 Chandelier                             ‘profit margin’...
CHARTING CONVERSION RATES                Conversion Rate              900    PROFIT                  0.5% = £150          ...
The DIFFERENCE Between 1% and 2%?                                            900  =   100%                                ...
Incorrect!                                      900  =   100%                                      Profit                 ...
Traffic Costs Money              (even SEO)The REAL difference between 1% and 2%?
CHANGING THE MATHSExample Cost                                    Visitor cost =£200per visitor = £1                      ...
APPLY THE TRAFFIC COSTS                                         7000.5% Conversion = £150Less cost of traffic             ...
REAL DIFFERENCE BETWEEN 1% and 2%                                   700 =   400%                          Profit          ...
SPEND AS MUCH AS YOU CAN ONCE PROFITABLE?                           7000                                            Profit...
HIGH CONVERSION   = Profitability
Upcoming SlideShare
Loading in …5
×

Difference between 1% & 2% is 400%

859 views
821 views

Published on

Small numbers make a big difference to web marketing

Published in: Business, Technology
1 Comment
0 Likes
Statistics
Notes
  • Be the first to like this

No Downloads
Views
Total views
859
On SlideShare
0
From Embeds
0
Number of Embeds
172
Actions
Shares
0
Downloads
3
Comments
1
Likes
0
Embeds 0
No embeds

No notes for slide

Difference between 1% & 2% is 400%

  1. 1. The importance of Conversion RateWhat’s the difference between 1% and 2% (Answer: 400%)
  2. 2. WHAT WE FIND IS… NEW SITE AVERAGE 1 deal per 200 visitors Conversion Rate Of 0.5%
  3. 3. Real Example: Lighting Company200 visitors Sell 1 Chandelier ‘profit margin’ £150 1 Sale Conversion Rate Of 0.5% = £150
  4. 4. 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
  5. 5. 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
  6. 6. Incorrect! 900 = 100% Profit 600 Profit 300 150 ProfitCONVERSION 0.5% 1% 2% 3% RATE
  7. 7. Traffic Costs Money (even SEO)The REAL difference between 1% and 2%?
  8. 8. CHANGING THE MATHSExample Cost Visitor cost =£200per visitor = £1 Sell 1 Chandelier 1 deal per 200 ‘profit’ of £150 visitors 0.5% = LOSE £50
  9. 9. 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
  10. 10. REAL DIFFERENCE BETWEEN 1% and 2% 700 = 400% Profit 400 Profit COST 100 £200 -50CONVERSION 0.5% 1% 2% 3% RATE
  11. 11. 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
  12. 12. HIGH CONVERSION = Profitability

×