The conversion of a website is the number of sales per 100 web sessions is one of the key metrics that decides how much you can spent on your marketing.
If you can make your sales conversion of your website just a little bit better, then this will have a flywheel impact on your revenue and on the amount of money you are able to spend on marketing which again is an extra boost of your revenue.
Lets say you have a conversion of 1% sales to every 100 users that are coming to your Mount Everest Base Camp trekking in Nepal webpage that cost $ 1000,- .
And you have monthly 800 users coming on the Everest Base Camp trekking page, that means you are selling every month to 4 users a mount everest base camp trek.
This means you sell 8 x 1000 = 8000 usd per month x 12 = 96,000 usd a year.
Now you have added better pictures, improved your booking form and increased your conversion to 1.25%
With the same amount of traffic you now have not 8 bookings but 800 x 1,25 = 10 bookings.
A 25% increase in sales.
But you bought this users with advertisements for lets say 25 cents per click:
800 x 25 cent = 200 usd -> you spend 25% of your turn over on advertising.
Now you still spent 200 usd -> but you get 10,000 usd revenue your marketing margin goes down.
If you keep this at 25% you can now spend suddenly 250 USD = 1000 users * 1.25 = 12 bookings.
-> A conversion increase of 25% led to a boost of 50% in sales with the same margins !!
That's why digital marketeers often focus on a better conversion before they start to spend more money on SEO or advertising.
If your conversion is worse then your competitors, you have to spend more on your marketing. Making your product either more expensive or you have to take less margins.
That's why improving your conversion is a key element in your digital marketing strategy
Value Through Passion has more then a decade experience of optimizing conversions numbers of travel and hospitality websites in the Netherlands, Turkey, Nepal & Myanmar.
Curious how we can make the conversion flywheel work for your organisation ?
Do send an email to firstname.lastname@example.org and or fill in our contact from.
Copyright 2018· All rights reserved