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Conversions
The marketing home run
Conversions are the cornerstone of marketing - More so today than ever before. You'll win or lose the marketing battle over conversions. Each time a prospect reacts to your marketing campaign it is called a conversion. The "reaction" could be calling you, or something just as simple as sending an email inquiry... But it's a response to your marketing. Obviously you want your marketing to reach far and wide, but without conversions it means nothing.
Tracking Conversions
Conversions are tracked by using analytic software on your Website. In addition, you should analyze the logs on your Web server. Generally, conversions are expressed as follows:
1. Conversion Rate (Conversions) – How many sales (or inquiries) you get per 100 times a prospect sees your marketing message is called “Conversion Rate”. For example, if your Website receives 200 visitors, and your get 3 inquiries, you divide 3 by 200 and then multiply by 100. Your Conversion Rate would be 1.5%, which is respectable.
Note: 1% is considered a normal expected conversion rate, whereas 4% would be considered a major home run.
2. Cost of Acquiring a Prospect – Divide the amount spent on your marketing campaign by the actual number of conversions. If you spend $1500 a year on marketing and generate 150 conversions, your cost is $10 per conversion ($1500/150).
