We usually come across search engine optimization and social media optimization but rarely do we think about terms like "Conversion Optimization". Conversion optimization is the process of increasing your conversion rate. It would be easy to understand with some examples:
First of all, suppose that your website is generating 3000 visits per day, it is a well-established website. Every day with conversion of 0.50%, the website is generating 15 sales. It may not be a bad conversion rate from your point of view as you know that your competitor's website generates just 1200 visits per day. Comparison shows that your website is performing better than your competitors. However, later you come across the fact that the competitor's company is generating much more money than you are. I guess you are wondering how this can be possible. Just be linked with the example and you will get the answer very soon.
Now for details, let the net profit per sale be ?50 and hence your site generates ?50 x 15 = ?750. Again suppose that the competitor's company is generating ?1800, though the net profit per sale is same for both. How is it possible? There traffic is 40% of yours and still they are generating 120% extra money. This is the time to remove the curtain and bring the hidden facts in front of you.
Now let us go back and calculate the competitors earning and traffic ratio. The above explanation states that your competitor is generating ?1800 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, therefore in 100 traffic they are generating 1.5 sales. So, the conversion rate for your competitor's site is 1.5%.
Hence, at last we experienced the fact that though your site may be generating better traffic than your competitor's site yet it is generating less revenue with respect to your competitor's site, the only difference is that your site conversion rate is 0.50% and his site's conversion rate is 1.50%. Imagine if your site starts generating 1.50% conversion rate then you can generate 3000 x 1.50% = 45 sales. It means 3 times more than your current sales and 45 x ?50 = ?2250 revenues per day. If we compare it with your current site status then everyday you are loosing ?2250 - ?750 = ?1500.
The process to increase the conversion rate 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.
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