Not Focused on Conversion Rate Optimization – Making a Huge Mistake

Conversion Rate Optimization is especially important if your budget is limited. The tendency is to attract visitors right away. Whether your website is new or old, most people just want to get visitors to it so they can increase sales leads. This behavior has been around forever.

In the days before the Web, we had sales brochures. Some companies would send those brochures to anyone on a list. They didn’t test to see if their brochure was any good at increasing phone calls. They just placed faith in their designer, and sent tons of this stuff out. Over the years, it got a name – “Junk Mail”.

In the 70s and 80s, some marketers (Direct Marketers), decided to start testing their offers. So they sent one offer to 10% of their audience and called it Offer A. Then, they sent another offer (Offer B) to 10%. Depending on which one generated the largest call volume – they picked a winner. The next step was to send the winning offer to the remaining 80% of the list. In that way, 90% of the list got the best of the two offers. This came to be known as A|B Split Testing. And, it is the same process used today to test email offers, social media campaigns, pay per click ads, and Web pages or landing pages.

So back to the budget comment above. The reason you want to spend your precious budget on conversion rate optimization first is that it can dramatically reduce your cost per sales lead going forward. The higher your conversion rate, the fewer people or visitors you’ll need to find for every sales lead. Obviously, there’s a cost for each visitor to your website. It’s expensive to attract a crowd.


  • If you create an email campaign, there’s a cost.
  • If you start a Pay per Click campaign with Facebook or AdWords, there’s a cost.
  • If you pay someone to optimize your website for the search engines, there’s a cost.

It’s probably easiest to think about it using some basic math. If you have a 1% conversion – it means that you’ll get one (1) sales lead or customer for every 100 visitors. So, imagine if you spent a dollar per click with Google AdWords. If it takes you 100 visitors to get a lead, you’ll end up spending $100 per lead. Now imagine if you could get your conversion rate up to 5%, now you only need 20 visitors to get a lead – that’s just twenty bucks! That’s $80 less per sales lead – a huge reduction in cost.

Now let’s carry it out a little further. What if your budget is $10,000 per month, and you spend 15% or $1,500 per month on marketing assistance. That leaves you with $8,500 for marketing campaigns (like online advertising). If we keep the $1 per click for AdWords and a 1% conversion rate, you’ll have 85 leads at the end of the month (at $100 per sales lead).

If you had a 5% conversion rate, that same $8,500 would yield 425 sales leads at $20 per lead. Which is going to make you happier? Keep in mind, you’ll have to spend a portion of the money dedicated to marketing campaigns on conversion optimization. To be conservative – let’s double the $1,500 to $3,000 per month on marketing assistance, including conversion rate improvement. Now you’re down to $7,000 available for campaigns. At 5% conversion, that would still result in 350 sales leads. That’s 265 more leads than you would have with a 1% conversion rate and $8,500 of your budget dedicated to marketing campaigns.

So is it worth it? The answer should be a resounding “Hell Yes”! Do you want another way to think about it – check out our Conversion Optimization Infographic.

2017-04-03T22:40:44+00:00 By |Lead Generation|0 Comments

About the Author:

He has over 20 years of experience managing and leading the Ecommerce efforts of small, medium and large companies. He has held sales, sales management, marketing, operations, IS/IT, legal and executive management positions in start-up to multi-billion dollar organizations. He has also served as an adjunct professor of Ecommerce for the MBA program of the University of Missouri (where he received an MBA concentrated in Direct Marketing in 1989). He led the Ecommerce initiative for Sprint PCS (PCS) and Sprint (FON) as Vice President of Ecommerce. He led the integrated marketing efforts for Insight (NSIT) as Senior Vice President of Marketing and Ecommerce. Today, he is the CEO and Founder of Aidan Taylor Marketing – a marketing agency for small businesses (between $1 million and $20 million in annual revenue).

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