Do the Web Write. Dan Furman

in different industries.

      A 2% conversion rate might be great for one site, while it’s lousy for another. Because the Internet is so vast and varied, there is no acceptable norm (and don’t let anyone tell you different). I say this because, for some reason, certain people seem to get hung up on what a “good” conversion rate is (usually 2%). That’s BS to me. I’m telling you to ignore what anyone else says is a “good conversion rate,” because they are different for every situation. Here are some examples as to why they are different:

      • It’s MUCH easier to get someone to click to contact you for a service than it is to sell a product. Thus, websites that ask for a contact usually convert higher than those that ask visitors to buy something.

      • That said, it’s MUCH easier to sell a $5 product than it is to sell a $500 one. So sites that sell cheap products usually convert better than sites that sell expensive ones.

      • Traffic matters too. For example, if you sell live bait, you will convert better by attracting 100 people who fish than you will by attracting 100 people who are looking for a gourmet restaurant (just a hunch, but I have a gut feeling those people won’t be calling you). Also, your ad budget will dictate the amount of “good” traffic you attract. Usually, the higher the ad budget, the higher the quantity of “good” traffic, and (in most cases) the higher the conversion rate. More on traffic in a moment.

      • Lastly, no two sites are 100% alike in terms of traffic and/or conversion. What is good for you may not be good for anyone else. Plus, all traffic is relative; Amazon.com likely gets more traffic than “Bud’s Bait.” It’s what Amazon (and Bud) do with their traffic that makes the difference.

      How to Use Conversion Rates

      Okay, I just told you not to get too worried about acceptable conversion rates. However, it’s still pretty important (and useful) that you understand the basics of conversion (and that you know your own conversion rate). That’s because once you establish a conversion rate for yourself, it is VERY simple to measure how changes to your website affect your business. It’s a really great tool.

      For example, if you track your numbers and have a steady conversion rate of 5% for several months, and then change the wording on a few pages and your conversion rate jumps to 7% the next month, you know you did a good thing. And if it falls to 3%, you know to put back what you had (you DID save it, right)? ALWAYS save the “old stuff” from your website when you update. I’ve “broken” my site more times than I can count by putting up what I thought was better content, only to see my conversions take a dive … it happens even to us web experts.

      In addition, looking at your website in terms of conversion rates makes it very simple to envision large business increases. For example, if you get 1,000 visitors a day, and get ten actions, you are converting at 1% (and for many businesses, this is just fine). Now, say you make a few changes (like the changes you’ll make after reading this book) and your conversion rate goes to 2%. You didn’t just increase business by 1%. You DOUBLED it, my friend. This is because those 1,000 visits are now producing 20 actions instead of 10. That 1% conversion increase (which, for most websites, isn’t all that hard to do) represents a HUGE change. Increasing your conversions by even a single percentage point could profoundly affect your business.

      Conversion rates actually affect your business exponentially even if the numbers seem very small. For example, an initial 2% conversion rate raised to 3% may seem small on the outset, but it represents a 33% increase in business. That’s right! In this case, 1% = 33%. And if the 2% is raised to 4%, it represents a 50% increase, which means 2% = 50%. And if we raise it 3%? Oh boy, that’s where the real fun begins (yes, I sometimes have a strange concept of fun. I’m working on it).

      Let me tell you a quick website conversion story

      A client once came to me and wanted me to help him write a few Google AdWords (PPC) ads. He wanted to bring more traffic to his site and increase business (he sold financial products). A quick chat about his site revealed that he already had exceptional traffic; he was getting close to 1,000 visits a day from interested prospects (he advertised heavily on Google). He was getting perhaps 10 inquiries a day, meaning he was converting at 1%. His goal was to get 20 inquiries a day, so he figured that if he increased his advertising enough to bring in 2,000 interested prospects, he’d reach that goal.

      I looked over his site and recognized right away that I could help him not by increasing advertising, but by increasing conversion. His site was not very well written, nor was it user friendly. So I told him, “Why not try and get more out of the traffic you already have?” We talked, and he agreed with my assessment. I wrote up a quick plan for what to do. The first step was to change the page order a little, and get the most important information clicked on first. The second was to change the copy. Under my direction, he had his web designer do the first part, and then I rewrote perhaps four pages of copy. Then he put up the new site and waited.

      He didn’t have to wait long. From the very first day, with the same amount of traffic he always had, he started getting 30-plus inquiries. This kept up consistently for weeks, and then months. All told, his new conversion rate jumped to 3.5%. I more than tripled his business.

      But here’s the really neat part. Had he upped his advertising spend to raise business, he’d be paying increased advertising fees month after month. But because I used the traffic he currently had, instead he had a ZERO increase in advertising costs.

      Now, some of you may be saying, “That’s great, Dan, but he had to pay YOU.” And yes, this is true. But my total fee was less than what one month of increased advertising would have cost. So after the first month, that part becomes irrelevant. But it gets better: Based on how much he makes from a sale, I actually paid for myself in one week. After that, it was all pure gravy.

      And here’s one more “even neater” part: This new conversion rate (3.5%) will almost certainly hold true even if he DOES decide to eventually increase advertising (as he obviously was willing to do before I changed things). So he could feasibly be getting 3.5% on 2,000 visits if he so chooses. ANOTHER doubling of business.

      Nice little story, huh? And trust me, things like this happen all the time.

      Website Conversion Rates are a True Indicator of Success

      One more thing on conversion rates.

      Looking at (and measuring) your website in terms of conversion rates cuts through the clutter of everything and gives you the definitive measuring stick of your website’s performance. This is because sometimes your website’s performance might not be reflected in total revenue. Personally, my overall revenue numbers fluctuate depending on the size of the jobs I am currently doing — yet, initially they all come in on the same quote form, and count as one conversion. My revenue is also determined by how well I convert my prospect once they have contacted me. If I have an interested prospect, my website largely did its job (it delivered me the prospect, and now I have to take over). So it’s not really fair for me to judge my website’s performance on revenue (or whether I close the deal), is it? If I’m getting a nice flow of interested prospects, and my revenue is still bad, my problem almost certainly lies elsewhere (maybe in my demeanor or my pricing).

      To give a slightly clearer example of the previous, imagine if you were unemployed, and had a nice rÈsumÈ made. You sent it out, and it got you a few calls or interviews. But then you proceeded to show up to the interview in shorts and a “work sucks” t-shirt, and (surprisingly) did not get offered the job.

      Is it your résumé’s fault that you didn’t get hired? Should you change your résumé? Or is the résumé doing its job (delivering contacts and interviews) and the real reason you remain unemployed lies elsewhere?The answer is pretty obvious (I hope)!

      To wrap this part up, in very simple terms, knowing your website conversion rate is probably one of the best ways to get a handle on how your website is doing. It also gives you a clear picture on how changes affect your business.

      Okay,