- You could be driving hundreds, thousands, millions
of people to your website. But how many of those people
are turning into subscribers, into leads, into sales?
Do you know?
You could be wasting loads of time
creating website content that doesn't produce any result
and unless you measure it, you'll never know.
And that's where conversion rate comes in.
Conversion rate is this magical statistic
that will tell you how efficiently
your website is turning visitors
into sales, into leads, into subscribers.
And when you know that you can hone the journey
that people take through your website
to optimise it for those sales, for those leads,
for those subscribers.
Now I know you may be cringing
at the very thought of statistics of numbers,
but don't run away, don't run away.
I promise you, I'm going to show you a simple way
to calculate the conversion rate of your website.
If you'd like to know more about how you can save time
and money and be more efficient with your online marketing
and get more sales, like who doesn't?
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I've got a whiteboard, I've got markers,
let's start measuring. Here's the formula you need.
The number of conversions.
So that could be the number of sales.
It could be the number of people
who filled in a lead form on your site,
or it could be the number of email subscribers you've got.
And then you divide that number
by the number of people who've visited your website
and multiply it by a hundred
because that's what makes it a percentage.
That means if a thousand people visit your website
and 10 of those people turn into sales,
your conversion rate is 1%.
And now, you know how many visitors you need
to get to your website to make 20 sales, right? Right
(Clock ticking)
That's the conversion rate for your whole website,
but you can break that down even further.
You can break that down for each stage
of the sales process on your website.
So, for example, a thousand people visited your website.
300 people visited the sales page on your website.
100 people added something to their basket
and 10 people bought. We know the conversion rate
for the website is 1%, but what's the conversion rate
for each one of those stages.
Starting with your website to your sales page.
So we know a thousand people visited the website,
300 the sales page. So the conversion rate for that stage
is 300 divided by a thousand multiplied by a hundred,
which is a 30% conversion rate. Not bad, not bad.
The next stage is moving from the sales page
to add into the basket or filling out a form.
And we know that 300 people visited your sales page
and a hundred people added to the basket.
So that's a hundred divided by 300 multiplied by a hundred,
33% still pretty good. And finally,
how many people who added to the basket actually purchased,
what's the conversion rate there.
We know that 10 people bought and a hundred people
visited the sales page. So that's 10 divided by a hundred
multiplied by a hundred, that's 10%.
Now that tells me we've got a problem.
Lots of people added to the basket,
but not many people bought. Why could that be?
Is the purchase process complicated?
Is it confusing?
Do people need to register before they buy?
Because that can put people off.
Or the too many questions on your quote form,
too many required questions that just make it confusing.
Is it hard to fill out that form on a mobile phone?
There can be so many problems,
but unless you know your conversion rates,
you won't even know there's a problem.
And there's other things that you can look at here too.
You could look at optimising your website content.
You could be creating more of the sort of content
that attracts the right people.
And then you could get rid of content.
Even if it's driving traffic to your website,
if it's attracting the wrong people.
You could optimise your sales page for search engines
so that you're getting lots of free traffic.
You could run ads to your sales page
targeting just the right people.
You could even test different versions of your sales page
to see if you change things, does it up the conversion rate.
Any one of these can help you improve your conversion rate.
And if you keep going back and measuring,
you'll know are you being effective?
I'm off to do some measuring. Are you coming?
Conversion rate is amazing,
but wait till I tell you about lifetime customer value,
don't panic. I'll explain it all next week.
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