The Business Case For Conversion Rate Optimization
Saturday, November 22nd, 2008As an Internet marketer you really have two options, widen the top of your online funnel or the bottom of it. If you widen the top of your funnel you’ll bring more people to your website which is great right? More people in the door translates to more people buying right?

But even at double the standard E-Commerce internet average conversion rate of 2% if you bring in twice the amount of people to your site you’ll get 2% of a bigger number, which is more people right? Well, you probably already know that it doesn’t exactly work this way. Eventually you would run out of money to feed the traffic machine and only get an incremental increase in conversions. Once you slowed down or stopped the wheel of traffic your overall conversions would eventually suffer.
What about the other 98% of people that didn’t convert? By widening the bottom of your funnel, your conversion rate increases. Optimizing for conversions provides you with a bigger part of that 98% without adding any more money to driving more traffic.

Let’s say your conversion rate is 2% so for every 5,000 people that visit your site 100 of them convert into buyers. If you increased your site traffic by only 0.5% your conversions would increase to 125 buyers increasing your total sales $10,00.00 vs. $12,500.00 with an additional 25 sales than the previous get more traffic example.
By increasing your conversion rate by only 0.5% your not spending your marketing budget on wasted traffic and the benefits of an optimized landing page is that it’s converting at a higher rate for every month not just the month where the optimization was done or a month with added spend in traffic. Your sales and return on investment will outlive the optimization work.


