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How to Use Conversion Rates

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Okay, I just told you not to get too worried about acceptable conversion rates. However, it’s still pretty important (and useful) that you understand the basics of conversion (and that you know your own conversion rate). That’s because once you establish a conversion rate for yourself, it is VERY simple to measure how changes to your website affect your business. It’s a really great tool.

For example, if you track your numbers and have a steady conversion rate of 5% for several months, and then change the wording on a few pages and your conversion rate jumps to 7% the next month, you know you did a good thing. And if it falls to 3%, you know to put back what you had (you DID save it, right)? ALWAYS save the “old stuff” from your website when you update. I’ve “broken” my site more times than I can count by putting up what I thought was better content, only to see my conversions take a dive … it happens even to us web experts.

In addition, looking at your website in terms of conversion rates makes it very simple to envision large business increases. For example, if you get 1,000 visitors a day, and get ten actions, you are converting at 1% (and for many businesses, this is just fine). Now, say you make a few changes (like the changes you’ll make after reading this book) and your conversion rate goes to 2%. You didn’t just increase business by 1%. You DOUBLED it, my friend. This is because those 1,000 visits are now producing 20 actions instead of 10. That 1% conversion increase (which, for most websites, isn’t all that hard to do) represents a HUGE change. Increasing your conversions by even a single percentage point could profoundly affect your business.

Conversion rates actually affect your business exponentially even if the numbers seem very small. For example, an initial 2% conversion rate raised to 3% may seem small on the outset, but it represents a 33% increase in business. That’s right! In this case, 1% = 33%. And if the 2% is raised to 4%, it represents a 50% increase, which means 2% = 50%. And if we raise it 3%? Oh boy, that’s where the real fun begins (yes, I sometimes have a strange concept of fun. I’m working on it).

Do the Web Write

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