Some business owners with an online presence hear the term conversion rate and only have a vague idea what this term really means for their business. In this article we try to explain some of the top benefits of tracking online conversions and how they can impact your business.
Marketing Budget Justification
You want your team to make educated decisions about your marketing budget based on real data and not opinions or best guesses. By implementing conversion tracking the business can track the referring source of the sale or lead and understand how the visitor interacted with the website prior to the conversion. The business can then take this data and use it to backup any decisions or recommendations on adjusting the overall marketing budget.
Lower Cost Per Acquisition
For any business to have long-term success, they will need to find the optimal cost for acquiring a customer. To find the optimal cost per acquisition, the company needs to be able to track online and offline conversions and tie the conversions to a particular channel (i.e. billboard, radio, Facebook ads,…). Being able to track conversions and finding the best marketing channels, marketing managers can then make educated changes to their campaign budgets that can lead to higher conversion rates and lower customer acquisition costs.
Higher Profit Margins
The ultimate goal for any business is to make more money while keeping margins low. An often overlooked benefit of conversion rate optimization is as sales increase, a business can negotiate their costs with the manufacturer and enjoy higher profit margins. This is an important benefit for any business owner to take advantage of if he or she wants to get the most out of their marketing campaigns.
Improve Website
In today’s market, it is not enough to just design a visually appealing website. Businesses need to think about how the site will convert that visitor into a buyer. With conversion tracking, a business can test different website features and understand how the visitor interacts with those changes. Based on these tests a company can implement website changes that can positively impact the site’s conversion rate. A company should recognize that a website is never truly complete and that continued testing is always necessary.
See how Thrive Internet Marketing can help improve your online conversion rate.
