We previously discussed a Teeth Whitening Company that we were working with to establish a online channel. In that post we identified that to increase profits we needed to do one or all of the following (the effects of removing conversion friction):
- Increase Traffic
- Increase Conversions
- Increase Average Sale Price
Out of these three options the easiest to immediately impact profits was to focus on increasing conversions by removing any friction in the sales funnel.
For purpose of this document let’s say they have 100,000 visitors a month with a 1% conversion rate. This means they have 1,000 sales a month with an average sale price of $40 for monthly sales of $40,000.
By optimizing their online sales funnel we estimate that we will be able to increase their conversion rate from 1% to 1.3%, resulting in an additional 300 orders for total monthly sales of $52,000. That’s an increase of $12,000 in sales per month without increasing traffic to the site!
Conversion optimization simply allows you to do more with what you already have. Its a lot easier, and more cost effective, to improve conversions than to increase traffic.