Small numbers make a big difference to web marketing

1. The importance of
Conversion Rate
What’s the difference between 1% and 2%
(Answer: 400%)

2. WHAT WE FIND IS…
NEW SITE AVERAGE
1 deal per 200
visitors
Conversion Rate Of
0.5%

3. Real Example: Lighting Company
200 visitors Sell 1 Chandelier
‘profit margin’ £150
1 Sale
Conversion Rate Of
0.5% = £150

4. CHARTING CONVERSION RATES
Conversion Rate 900
PROFIT
0.5% = £150 Profit
600
Profit
300
150 Profit
CONVERSION 0.5% 1% 2% 3%
RATE 1 deal 2 deals 4 deals 6 deals

5. The DIFFERENCE Between 1% and 2%?
900
= 100%
Profit
600
Profit
300
150 Profit
CONVERSION 0.5% 1% 2% 3%
RATE 1 deal 2 deals 4 deals 6 deals

6. Incorrect!
900
= 100%
Profit
600
Profit
300
150 Profit
CONVERSION 0.5% 1% 2% 3%
RATE

7. Traffic Costs Money
(even SEO)
The REAL difference between 1% and 2%?

8. CHANGING THE MATHS
Example Cost
Visitor cost =£200
per visitor = £1
Sell 1 Chandelier
1 deal per 200
‘profit’ of £150
visitors
0.5% = LOSE £50

9. APPLY THE TRAFFIC COSTS
700
0.5% Conversion = £150
Less cost of traffic
400
Lose £50 per deal Cost
£200
100
-50
CONVERSION 0.5% 1% 2% 3%
RATE

10. REAL DIFFERENCE BETWEEN 1% and 2%
700
= 400% Profit
400
Profit
COST
100 £200
-50
CONVERSION 0.5% 1% 2% 3%
RATE

11. SPEND AS MUCH AS YOU CAN
ONCE PROFITABLE? 7000
Profit
= Make
10 x
more
4000
Profit
Spend 10x more
COST
1000 £2000
-500
CONVERSION 0.5% 1% 2% 3%
RATE

12. HIGH CONVERSION
= Profitability