If you’re a pay-per-click specialist, then your main objective is to ensure you drive as much traffic to a website as possible. And if a percentage of the traffic converts, and if the campaign seems profitable, your job would be to optimise the campaign for bigger budgets. This will allow you to drive more traffic hoping it translates into more sales.
And this makes sense, right?
Let’s think about it for a second. If you are spending R20 000 a month on Google or Facebook Ads, and you are driving 10 000 people a month to your website, then you are essentially paying R2 a landing page view. Now, if you made R30 000 back in sales, then your campaign made 1.5x the return. This means that for every R2 spent you made R2.50c back.
This is a very profitable campaign. It would only make sense to put more money into the strategy so you could make more money back. Right? Well, what if we told you that there is a way that you could spend the same amount of money but make more money back than before?
You’re probably thinking that this doesn’t make sense. If the budget doesn’t change, what needs to change for us to make more money back? And the answer to this burning question is, we need to improve the ratio between people who land on the website and the amount of people who buy a product. This ratio is called your conversion rate and optimising this ratio is called conversion rate optimisation.
So, how does it work?
How Does Conversion Rate Optimisation Work?
It’s simple, really. If 10 000 people land on your website and only 1 000 of them made a purchase, your conversion rate is 1%.
Now, keep in mind the average conversion rate for e-commerce stores is around 2 – 3%. So, if your store has a 1% conversion rate then you could most definitely improve. Now it all comes down to finding out why 9 000 people are not buying. Is it because of price? Maybe it’s because they couldn’t find what they were looking for? Or, maybe the checkout process was way too complicated.
Regardless of the reason, it’s the conversion rate optimisation specialist’s job to try and fix it.