Hey its Chris Martinez CEO and Co founder of WebsiteIn5Days.com and today I’m going to talk to you about the importance of tracking your conversion rates!
So as a part of what we do at WebsiteIn5Days.com we routinely have coaching and consulting calls with our clients and one of the things that we always talk about are “conversion rates”.
Well you might be sitting there and scratching your head wondering, well what the heck is a conversion rate. Guess what? You’re in luck because today we’re going to explain that for you.
So anytime you run any kind of marketing campaign you want to TRACK YOUR RESULTS.
You want to know how many people you are reaching, how many view your ad, how many respond, and how many of those people who respond you turn into customers.
So let’s take the first thing you’ll want to track which is LEAD CONVERSION. In the online marketing world, that usually means how many people opt-in to a web form you have on your website. For example, let’s say you are running facebook ads and you are offering people a free pdf download of your book. People see the ad, they click on it, and then they go to a landing page where they enter their name and email to receive the book. THAT IS A LEAD CONVERSION. And what you want to do is TRACK how many people came to the page and the percentage of those people who came that gave you their name and email.
NEXT, assuming that you don’t want to just give away ebooks all day, but that you have something to sell that is related to that ebook giveaway, you want to track how many of those ebook downloader people then give you money and become a paying customer. That is a SALES CONVERSION and that is definitely something that you also want to track.
So let’s do a little simple math to tie this all together.
Let’s say 1000 people see your Facebook ad. Then of those 1000, 100 click on the ad and come to your landing page. Then of those 100 who come to the landing page, 20 give you their name and email for your ebook.
What is the lead conversion rate for that? If you said 20% then you are correct.
So here is the next part of that question. Let’s say that of those 20 people who downloaded your ebook, 5 of those people became customers.
What is your sales conversion rate for those that downloaded the book? If you said 25%then you are correct.
Then you can basically deduce that for every 100 people that come to the website, 5 of them will become a customer which means your overall sales conversion rate is now 5%. And if each sale is $1000 a pop you’re in a damn good position to make some money and can definitely justify investing some more money into your advertising campaigns!
So this is my down and dirty tutorial on Conversion Rates. If you have questions just remember that all of our clients at Websitein5Days.com get coaching and consulting to help them understand and improve their conversion rates so feel free to give us a call.
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