What is a "Conversion"? - A conversion is most broadly defined as any action taken which the web site's owner deems a valuable contribution to the sales process.
Optimizing your web site's conversion rate is one of, if not, the most important aspect of any search engine marketing strategy. Nothing effects your website's profitability more than conversion rate optimization. Be it an online sale or an inbound call or a lead, anything which increases the frequency of conversions will lower your cost of acquisition and increase your profitability.
Most often, these actions occur in the form of an online purchase, a phone call to the business or the submission of a web form. However, many less obvious conversions are often overlooked or left un-optimized such as the number of people who enter their address into a site's directions application or customers who visit your store with a print-out of a coupon or web page in hand.
Conversion Rate - The rate at which a web site's visitors enter the sales process. If a site receives 100 unique visitors and 5 fill out a form & 5 contact sales using the toll free number, 10 people have entered your sales process. Therefore your conversion rate is 10%.
Strategy is always the cornerstone to everything we do at Search Marketing Group. We begin by analyzing your current web site and your data. Once we have established a baseline, we begin mapping out a series of experiments. Each time a change is implemented we track its effectiveness, make note of positive changes and begin the cycle again. This process is repeated as often as is necessary to achieve the desired results. Software is often used to accelerate the process.
Mathematics of Conversion - If you pay $1 per click and your average profit on a sale is $100 and your conversion rate to sale is 1%, you are just breaking even because it cost you $100 to make $100. By increasing your conversion rate from 1% to 5% your cost per sale drops from $100 to $20. Now imagine the profitability your business would experience at a 25% conversion rate. Figure 3 demonstrates our ability to achieve double-digit conversion rates for clients.
Many of our campaigns have conversion rates which regularly exceed 10%. Higher conversion rates allow you to out-position your competition, grab a larger market share and make more money while spending less per sale. We cannot stress this concept enough. It is so simple, so effective and yet it remains the most overlooked aspect of search engine marketing.