If you are spending your digital market budget exclusively on generating traffic, you are making a big blunder.
If you work with digital strategies and campaigns, you need to know what converting means for you – what the campaign should contribute to, and what we want the user to do on the website.
Because conversion can mean many things. A specific purchase or ordering of an item is most common in classic ecommerce. But also that a user leaves contact info, ordering a test drive, booking a hotel room, downloading a brochure, video or visiting a landing page is also typical conversion goals.
Nina Furu at Webgruppen has been a steadfast proponent of a simple success formula for all work on the web:
Traffic X Conversion Rate = Success
It is obviously about getting as many users as possible to visit the website and then getting as many as possible to do what you want them to do. That the visitor should convert – specifically carry out an order or purchase.
You increase traffic by running marketing initiatives in online and offline channels. TV, print and radio advertising offline, in combination with banner advertising and social media presence are examples of activities that drive traffic in.
If you also optimize the web pages, make it tempting and easy to order, you are well on your way. However, if you also use automated marketing and automated campaigns, you can further drag up the conversion rate. To improve the conversion rate by 1-3% for many network operators will be of great importance.
It is therefore important to distinguish between the so-called traffic channels and the conversion channels and to have a good balance in the use of resources between them.
Of course, you still need to add resources to getting inbound traffic, but it’s also very important to spend resources on what actually converts visitors when they arrive on your pages.
We see that a very large part of the market budgets are used to generate traffic, while to a much lesser extent resources are used to get visitors to convert and to influence buying decisions in a positive direction.
We at Recheckit work with several of the largest players in Norwegian e-commerce and find that a balanced use between getting visitors to the web pages – and getting visitors to convert provides maximum benefit from the market budget.
And as we usually say, it doesn’t help to have high traffic to an online store if no one buys anything.