Conversions = Goals = Sales
What are conversions?
Conversions are the main event, the point of all the work we do. A conversion is an action that occurs on a website that you are looking to achieve, a goal. This usually takes the form of an online sale or an enquiry form being submitted.
So if you run a website selling tshirts, one of your goals will be achieved when a user purchases a tshirt. If you are a wedding planner then a conversion would be counted when a prospective customer makes an enquiry through your website. These are the most common types of conversion, but they can be anything you want them to be. It could be when a user reaches a specific page on your site, signs up to become a member, signs up for an email newsletter or watches a video. For the majority of situations when we talk about a conversion we are referring to a website making a sale.
Why are conversions important?
Conversions are incredibly important as they tell you how well your marketing efforts and website is performing. Traffic to a website is important but not as useful if it isn’t converting. By tracking your conversions it’s possible to work out a return on investment on your different advertising sources and to adjust your strategy accordingly. If you are paying for digital marketing in any form conversions should be at the top of your watch list. As obviously, a campaign that doesn’t return leads or sales may not be worth the cost. There are some exceptions such as increasing the exposure of a brand, but for most clients we work with conversions are the main aim.
How are conversions tracked?
Google Analytics is free software which will track which websites bring you traffic, conversions and a whole lot more. Once set up on a website it will be possible to tell if a customer clicks to your site from Google or any other site, and then goes on to buy a product or fill out a contact form. With paid search it is even possible to see which keywords a customer typed in to find your site. This is incredibly useful information to have. If you can see the exact keywords that a customer types in to find your site and make a purchase, you can begin to focus your marketing efforts around those keywords.
Ever wondered why some company names have got more descriptive and literal over the last decade. It’s because certain businesses have figured out what they’re most valuable keywords are. Companies will often now name themselves after the keyword to get a domain name with more relevance in Google.
Sell House Fast
The Watch Shop
But anyway. I’ve wandered off topic. So how can you find out which traffic is converting? You will need Google analytics installed, and to have a particular URL or action set as a goal. You can find the set up page within Analytics by going to Admin / All website data / Goals. To view goals once they’ve been recorded visit Acquisition / All traffic / Source / medium. From this screen you’ll be able to see which sites bring in traffic and how many conversions there have been for each.
We track conversions for all of the campaigns we run, showing how many enquiries and sales that a website receives every month, and how that grows over time.
You can measure how much everything costs?
If you know how many conversions you are receiving from each traffic source it allows you to figure out how cost effective each source is. As an example let us say we are running a pay per click campaign for a guitar shop.
One of our keywords could be “buy guitar online” which would currently costs £0.82 per click. In our example the site receives 100 clicks at that average price and two people go on to purchase guitars worth £300 and £850.
Here’s how the numbers work out:
100 clicks x £0.82 = £82
Number of sales = 2
Sales amount = £1150
Cost per conversion = £41
Conversion rate = 2%
So the total spend is £82 which brings in £1150. Even if the profit on those sales is as low as £200 the campaigns will still have been worth it. A 2% click through rate is also very conservative. Some of our campaigns run with over 20% conversion rates. Our example above doesn’t include our campaign management fees but that would be taken into account in a real life campaign.
Now imagine you have an SEO campaign which focuses on increasing your rankings for 20 keywords, but also helps to lift up another 50 (as many of our campaigns do). We will be able to work out how much this increase in rankings and traffic is worth. Of course this works the other way too. If you purchase a banner advert on a website that delivers 500 clicks but no conversions, this tracking will help evaluate the traffics worth.
Conversion rate optimisation (CRO)
This data is incredibly useful to have access to. One way we put it to good use is through conversion rate optimisation. This is a technique which allows us to redesign your websites messages, layout and images to get you more conversions. If we can increase the number of conversions you’re receiving we can make your traffic work harder and worth a lot more.
Armed with analytics data we can make informed decisions about what is working on your website and what’s not, and then redesign and test until we hit a sweet spot.
Armed with this data we can do anything.