30 October 2011
Converting online traffic into sales isn't as difficult as you might think...

This is a term that was originally coined by the property market when converting a click through to a sale. These days it applies to anything that one might be selling online from cars to counselling services.

In essence it's a way of referring to the conversion of traffic to sales, from website visitors or prospects to customers.

Almost anyone running a business and especially an online business will be keen to identify just how a prospect surfing their website can be turned into a sale and put money in the bank based on what was originally a simple enquiry.

Footfall = Searches

Let's take an example. John, my favourite cobbler. He owns a shop in the high street and has a good footfall number with around 1,000 people passing by his shop each day. Of the 1,000 passing by around 100 actually stop and look at his window display. However, most of them walk on.

Walk Ins = Visitors

Of the 100 that actually stop to look about 10 walk in and make an enquiry and of these only 1 makes a purchase.

Now that conversion rate may seem pretty bad, it's about 1% of people that actually take a look at what he has to offer that go on to make a purchase. However, what may surprise you is that this conversion rate is about average for an online business.

Clearly, if you are operating in a niche market then that conversion rate increases. If John was selling pink shoes only for example his conversion rate would be much higher for people walking around (searching) for pink shoes.

Calculating The Revenue

So, let's say John sets up a website and we know that his website will receive 100 visits a day, that basically equates to 1 sale a day. If an average sale is 50 Euros that means that he'll make an additional 1,500 Euros a month from online sales.

In addition, he doesn't need to take time to deal with the customer directly 8unless he wants to), he spends less time involved in the buying cycle of the customer and the website can sell his shoes when his shop is closed, when he takes a holiday or is simply unavailable.

Increasing The Revenue

Sounds interesting now no...? You can also work this backwards...

Say you want to make 5,000 Euros a month from a website. You simply need to calculate your average sales value and find ways of attracting the clicks.

This can be done through traditional media, AdWords campaigns, Social networking or banner exchanges. List list is endless.

I work constantly with clients who have budgeted not just money but time (which is more important) to develop their online sales strategy and without exception they all see benefits.

The Medium Is The Massage

How you get your message across can be just as important as what you say. Think of novel ways of getting your message out there, words or phrases that attract attention and using mediums that are not that common.

In effect it's all really simple. You brainstorm what you want to do and then get it done.