Not long ago, I shared a little bit with you regarding Conversion Rate Optimization. How it impacts your business and how to look for the signs that reflect you have a problem.
As a quick reminder, conversion rate optimization breaks down to what is the % of people that visit your website that “convert” to a sale. Converting can mean they fill out a Contact Us form, buy a widget, submit a request for a proposal, make a donation…you get the picture. If your conversion rate is less than 3% than most likely you have a problem and you are leaving money on the table.
Here, let me show you:
You own Toy Widget Makers, LLC and you make toy train accessories.
You launched the family business 29 years ago and you launched the online web store 5 years ago.
Your web traffic averages 27,532 visits a month with an average order size of $165.
Current monthly averages:
Your average number of orders: 193
Average gross sales: $31,845 ($382k per year). Not too bad for a small mom and pop company, right?
Conversion Rate: 0.7%
Conversion Rate Profit Loss
Your industry average (note that this varies industry to industry):
Conversion rate: 3.4%
Number of orders: 936
Gross sales: $154,440 ($1.8MM per year).
Every month your competitors are taking sales away from you. You have the traffic to far exceed your current sales. You have not invested money into your website because you did not feel it was important or would impact your bottom line. As we progress digitally, customer online experience will dominate the influence of website conversion rate. If the experience isn’t what your customers want to see then your loss of prospects and current clients will grow like a stack of bills at a debt collector’s office.
On a monthly basis you are leaving approximately $122k on the table for your competitors. I understand how you feel about your website! Your niece designed it or you currently like the “party feeling” that it has, but what is more important? Not rocking the boat or putting another $122k back into the company on a monthly basis?
We shop less and less at the brick and mortar and spend more time searching out products on the internet. If your website is not performing up to your peers than you will eventually be out of business.
So, how is your website impacting your profit?