tag:blogger.com,1999:blog-18012046.post8576986509823001949..comments2024-03-25T23:56:43.770-07:00Comments on Digital Marketing and Analytics by Anil Batra: What Is Your Conversion Rate?Anil Batrahttp://www.blogger.com/profile/10987449618439416854noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-18012046.post-44762863411100461342009-07-07T13:17:33.059-07:002009-07-07T13:17:33.059-07:00ROI is the most important metric, but traffic conv...ROI is the most important metric, but traffic conversion will often be a significant factor. PPC commonly runs in the $2 range. No matter what you're selling, going from 2% to 10% saved you $80 per sale. That has an impact on ROI no matter what you sell.Nathan Lindleyhttp://www.goodcatchpublishing.comnoreply@blogger.comtag:blogger.com,1999:blog-18012046.post-88362019014438386782009-06-03T10:53:59.377-07:002009-06-03T10:53:59.377-07:00I completely agree with Dave. ROI is the most impo...I completely agree with Dave. ROI is the most important factor here.<br /><br />From my perspective if you have a consistent .5% conversion rate, but your ROI is 200%, you are kicking butt. Plus it might mean that you still have a large opportunity to improve even more by using a/b and multivariate testing.<br /><br />Example:<br /><br />If you invested $20 per lead and had a high 20% conversion rate (to purchases) but each sale generates net $10, you are screwed even in the short-run... unless you have VC funding ;)<br /><br />On the other hand, if you invested $20 per lead and had a low 0.5% conversion rate, but each sale was worth $20,000, then you have a very profitable business. Even better yet, you probably have room to improve!<br /><br />Just my two cents.Aaron Lovelacehttps://www.blogger.com/profile/03506162142212034381noreply@blogger.comtag:blogger.com,1999:blog-18012046.post-23275526224183471152009-06-03T10:46:11.607-07:002009-06-03T10:46:11.607-07:00This comment has been removed by the author.Aaron Lovelacehttps://www.blogger.com/profile/03506162142212034381noreply@blogger.comtag:blogger.com,1999:blog-18012046.post-82664656550404585002009-05-01T09:18:00.000-07:002009-05-01T09:18:00.000-07:00I agree with Zen Analytics... for a lead generatio...I agree with Zen Analytics... for a lead generation site, would you still need to be concerned if the conversion rate is approx 3%?<br />What would be a good average for lead generations sites (rather than ecommerce)?<br /><br />BTW, 50% is *awesome*Adrian P.https://www.blogger.com/profile/08341156440720501648noreply@blogger.comtag:blogger.com,1999:blog-18012046.post-40765079553568189282009-04-30T22:31:00.000-07:002009-04-30T22:31:00.000-07:00Anil,
In the chart you show, are these the 'uber' ...Anil,<br />In the chart you show, are these the 'uber' conversions resulting in $$ or includes other forms of conversions? <br /><br />Personally, I have always tied a conversion rate to a goal. If you are a lead generating site, your goal and conversion rate would be defined differently than from say a content site vs an ecommerce site etc.Zen Analyticshttps://www.blogger.com/profile/00701211554215868078noreply@blogger.comtag:blogger.com,1999:blog-18012046.post-52244590384878159482009-04-30T21:55:00.000-07:002009-04-30T21:55:00.000-07:00I bet they don't advertise on the content network....I bet they don't advertise on the content network. A lot of the traffic is direct. (But 50% is still ridiculous).ericzhttp://www.roseospreymarketing.comnoreply@blogger.comtag:blogger.com,1999:blog-18012046.post-9751403760280837832009-04-30T09:01:00.000-07:002009-04-30T09:01:00.000-07:00Isn't ROI the only metric that matters? Who cares...Isn't ROI the only metric that matters? Who cares if your conversion rate is 1% if you are maximizing gross margin (in total dollars). You could be outperforming a competitor on that measure who has a 40% conversion rate. The question to ask is what are you trying to optimize? The answer should be lifetime value (in gross margin) of a customer.Dave Gouldennoreply@blogger.comtag:blogger.com,1999:blog-18012046.post-22887576409390105332009-04-30T02:35:00.000-07:002009-04-30T02:35:00.000-07:00I entirely agree as a social networking/virtual wo...I entirely agree as a social networking/virtual world selling virtual assets we have a monthly visitor conversion rate of 2.0%. Looking at shopping cart abandonment on http://index.fireclick.com/ and comparing to real apparel sites (not a very good comparison I know) we think we should be able to get our site conversion to 5%. So we are looking at our conversion funnel and experimenting with Google Website Optimizer. Retention is also a big driver of conversions so we are looking at engagement as well. It makes no sense in generating lots of new visitors - pouring water into the top of the funnel when so much is leaking out the sides.JIm Willliamshttp://www.ju2.comnoreply@blogger.com