For an e-commerce website, it is important to track your success, especially if you have no idea where you rank in the search engines. The best way measure your e-commerce success is with Conversion Ratio Tracking. Tracking your business activity from your website is the best way to improve your results, and turn browsers into buyers.
You spend large amounts of time researching keywords, creating content for your pages, creating search engine friendly pages, which ultimately help in bringing you traffic and sales. But how do you measure your actual success?
What is Conversion Ratio Tracking?
Conversion Ratio is the number of sales per site visitors, or the percentage of visitors “converted” into sales. So if you made 10 sales from 200 visitors, then your Conversion Ratio is 1:20, or 5%. Examining the data that makes up this statistic, such as the number of visitors, where they come from, how long they stay in your site, and analyzing ways to improve this number is called Conversion Ratio Tracking. This is different than Return on Investment, or ROI Tracking. ROI is used for calculating return on investments put into advertising, whether pay per click, banner advertising, or purchasing text links. The methods listed here overlap greatly with ROI Tracking; however, there is other detailed information that goes into ROI tracking that we won’t be necessarily dealing with in this article.
Conversion Ratio Tracking is the basis for all sales analysis, and its objective is to increase and dissect a business's ability to generate leads and close the transaction. For every certain number of visitors to your website, you will make a sale. The fewer visitors you have per sale, the higher the Conversion Ratios and the more visitors you have between sales mean lower ratios. The Conversion Ratio is a golden number of advertising. This measures how many visitors to your site actually became customers. Ratios vary widely from industry to industry, but what we are watching is the change over time. And you certainly want that change to be positive.
There are three key steps to successful Conversion Ratio Tracking; within each step are several concepts that will help you achieve this success.
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