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The Importance of Visitor Conversion

In this article, we look at understanding if your site is ready for paid advertising and CPC campaigns. A common tactic to address slow web sales is to pay for advertising on various web networks (Google or Overture being the most pervasive). This, however, may not be the right “first thing” to actually do. To understand why, let’s look at a simple formula that describes web sales:



Traffic to the Site * Visitor Conversion To Customer * Average Order = Web Revenue



What does each part of the formula mean?



“Traffic to the Site” is just what it sounds like: if you have 1000 unique visitors (in web reporting this is known as Unique IP Addresses) coming to your site each month, then you can plug “1000” into that part of the formula. This number is not equitable with “Hits” or “Page Views” as these are not representative of actual people coming to your site, only how many pages are being viewed.



“Visitor Conversion To Customer” means the percentage at which your site converts a new, random, unique visitor into an actual, buying customer. If you have 100 people coming to your site in a month, and only one places an order, your conversion percentage is 1%. Conversion percentages for web sites vary dramatically, with most sites shooting for 0.5% to as high as 5%.



“Average Order” is simply the averaged total (or subtotal) of web orders placed. If a site is selling widgets for $19.95, and the average order is for 2 widgets, then the average order subtotal would be $39.85. So, what does all of this mean? We all learned in math that anything that is multiplied by zero is still zero. Applying this to the above formula shows that increasing web traffic to your site could still lead to a ZERO. If your conversion percentage is 0% (or something lower than 0.5%), paying for traffic into your site is a bad

investment.



What do you do if your conversion percentage is lower than 1%, or you need to get your conversion percentage higher? The short answer is: find out why visitors are not buying. We understand, this is easier said than done. Your best bet in getting started is with customers you already have. Ask them what they liked and disliked about your site. Do not fall into the trap of jumping on the obvious answers or the first answer to come to you. Often times, there are multiple reasons why your conversion percentage is lower than it could

be. The web reports your site generates automatically can also give you insight into why visitors are not buying, but analysis of these reports usually requires an experienced person who knows how to interpret the numbers.



Here is a short list of common issues we see, that once fixed, led to higher conversion percentages:




  1. Hard-to-use or unintuitive web site navigation

  2. Low quality product pictures

  3. Product descriptions meaningless or too short

  4. Splash page for the front page

  5. Heavy use of graphics makes pages download too slow

  6. Shopping experience confusing or too many distractions




All of these can be summarized as: your website does not meet visitor’s expectations. Figure out what their expectations are, change the site to meet their expectations, and watch your website grow!

Why Choose MagicLamp Networks?

Results-Driven. Focused on Your Success.

We know that your website is a financial asset to your business. We're here to help you reach your business goals and get you the highest possible return on your investment. Our clients' ROI is how we measure our success.

Business-Specific Design.

We help you assess your business needs quickly and accurately, identify what sets you apart from the pack, and communicate it in ways that make clients listen. Because we build sites from the ground up, we can give you the most effective custom tools for marketing your specific products or services.

Complete End-to-End Services.

Don't have your own designer? Not sure how to word your mission statement? No problem. Whether it's branding, copywriting, or full-service technical support, MagicLamp provides everything you need to build a complete web presence.

Online Marketing Expertise.

We use current "white hat" SEO practices to push your site high up in search result ratings so you see traffic rolling in as quickly as possible.

Over 20 Years Of Client Partnerships.

We’ve been making websites since the internet was young. We build long-term relationships with our clients based on results. Many of our current partners have trusted us with their online success for over 5 years.

Websites that Work the Way You Do.

Our sites work the way you do, not the other way around. There's no need to change the way you already do business when you choose Magic Lamp. We’ll make sure your website complements your workflow without complicating it.