Higher Targeted Traffic = Higher Conversion Rates = Higher Sales

More conversions almost always lead to more sales, while more traffic doesn’t necessarily increase sales. That is why conversion is more important than traffic if you want to increase revenue.

Finding out which one is more important – website traffic or conversion – is a long debate that every business owner considers. You can work on both, but you want to know which one is better to generate more sales and revenue. You want to know this in case you needed to focus on only one for, let’s say a month. Truth is – this is a trick question because both are important. But if it’s a simple answer you are looking for, remember this – visitors don’t make sales, only customers do.

Why Website Traffic is Important?

Website traffic has a huge impact on your business. Three things make traffic critical for your website:

  • The more visitors you have, the better your website is.
  • Not all traffic is good, so you need to improve the quality of your traffic.
  • The better the quality of your visitors, the higher your conversion rate can be.

In generating more website traffic, you need to engage the local audience. It’s one of the tactics that’ll help you have better opportunities to add new customers. With that, you’ll also have more chances to generate qualified leads to nurture.

The goal is for this to lead to the sale of a product or service, so you can ultimately gain a new customer or capture lost customers. Of course, your business doesn’t only need website traffic to grow. However, it does play a big part in your success.

After all, the more visitors you have, the higher conversion numbers are as well, particularly if you improve the quality of your traffic. It just means that you have fewer new visitors to maintain, so you can focus on creating a stronger bond with existing customers.

More Traffic Does Not Always Equal More Sales, More Conversions Almost Always Do

More traffic does not always equal more sales. If you are bringing in tons of traffic, but it’s the wrong kind of traffic, then visitors will bounce and it will lead to zero closed deals. Here are some reasons traffic may increase, but conversions decrease:

  • The content does not match the intent of the search phrase driving the traffic
  • The website content covers a topic that is not directly related to the product or service you are selling
  • The website content directly links to what you are selling, but it is TOFU content reviewed during the initial research stage and not during the purchasing stage
  • The website content presents a poor image of your company and convinces prospects not to buy from you
  • The website content is confusing or hard to understand
  • Your lead capture form is broken or ineffective at converting

For an increase in traffic to lead to an increase in conversion, the traffic must consist of highly targeted users (targeted with compelling purchase-intent content) being funneled to high-converting pages. For example, the number one page for traffic on the Profitworks website links to a free accounting software. We offer this because many of our customers are small businesses. Yet, since that page is not at all purchase intent content for what we sell (SEO services), we have never received a lead from that page. It creates a lot of traffic to our website, but no conversions or closed deals.

On the other hand, if we work to increase the conversion rate of our home page and we can get the conversion to go from 10 leads a month or 1% of traffic, to 2% and 20 leads a month, I can guarantee you we will see increased sales.

It Is Easier To Double Conversions Than Double Traffic

In a simple A/B test, we have been able to increase the conversion of web pages by as much as 600% and often have them show improvements of over 50%. The time it takes to build and run the test can often be a few weeks.

On the flip side, to get that kind of an increase in traffic to a web page it will often take a few months and the amount of work that we would put into attaining those results is usually 3-4 times that of the A/B page test.

Here is a great example:

Let’s say that you get 10,000 visitors to your website a month and 100 closed deals from conversions from that traffic. Each customer equals, for the sake of argument, $1,000, so currently your website is bringing in $10,000 dollars in sales.

Now, if you were looking to double your sales, here is what it would look like if you try to achieve your goal through increasing conversion vs increasing traffic:

The other important factor to look at in this scenario, is that often when you increase traffic your conversion rate does not stay flat but actually dips. So there is a lower chance of success in increasing sales by $10,000 a month in the scenario if you double traffic, rather than doubling conversions.

Often, with a significant increase in traffic, conversion will drop 10-20%. Even if it just drops 10%, at the new traffic levels sales would only increase $8,000 per month. To get the full targeted sales increase you would need to increase traffic by 1,222 sessions.

Getting Conversion Right, Before Traffic, Leads To Better Profitability

For the reasons stated above, if you increase traffic but you have a low conversion rate, it does little for your bottom line. Conversely, if you have your conversion optimized first, and then push a bunch of traffic to your website after that, it will create better cash flow for your business.

The monthly increase amounts that we have experienced tend to be very attainable over the first six month period of working on increasing either conversion or increasing traffic.

Investing in your website can have great rewards. No matter what data you look at, investing in your website is always near the top of the list of the best ROI marketing choices you can make. From our data it on average delivers a 275% ROI, or delivers an additional $2.75 in additional profit for every dollar spent.

Why Conversion Rate is Important

Another part of the sales funnel that’s equally important to focus on is improving the conversion rates. If website traffic is the number of visitors to your site, conversion rate tells you the number of people who took your desired action.

For instance: this entails the number of people who bought a product from you and become a customer. The conversion rate is, no doubt, the most vital metric in digital marketing, more so than website traffic.

They are both essential, but having many visitors doesn’t do you any good if they don’t buy your products or services. You want to make a sale so that you can earn more profits and you can only do that by increasing your conversions.

Besides revenue, the conversion rate also has numerous other advantages. They include:

  • Telling you if your business strategy is a failure or success.
  • Showing you if your strategy is working, leaving you extra cash to try other marketing tactics.
  • Improving your website, campaigns, and sales processes by creating an in-sync sales funnel

In increasing your conversion rates, often you automatically improve the different aspects necessary for leading prospects down the sales funnel. However, keep in mind that these numbers aren’t always reliable.

They can be deceiving if you only blindly believe in a high or low conversion rate. You need to learn to evaluate data. This way, you can get an accurate reading of what your conversion rate really means for your business.

With targeted traffic that converts into sales, you can expect a faster return for all your PPC investments, allowing you to launch an even better, more massive and more effective PPC campaign. At this point however, it would be important to take careful note of conversion rates in relation to the amount of targeted traffic you receive and the price of your product or service.

This can be simplified by the following example. Let’s say that you are selling a product worth $50 through your website and are using PPC Ads to promote and market your product online. If you pay approximately $0.50 per click through your PPC ads, then you’ll need a conversion rate of more than 1% from all your site traffic. This means that for every 1000 site visitor, you should have at least 10 people from this batch buying your product just to break even on your PPC campaign.

People online are constantly seeking huge amounts of information for whatever purposes or needs they may have on a daily basis. More often than not online users get directed to a website, either through a natural search engine query or clicking on what they thought was a relevant PPC ad, only to find information or content that really does not provide the answers they need. Many would simply get frustrated from all these and forever shun these websites that they have now marked as useless.

Where Does Traffic and Conversion Intersect?

A lot of people get confused as to which one to focus on – website traffic or conversion rates – mainly because they both help bring more customers. The thing is, you usually don’t need to choose one since the two intersect.

More specifically, the traffic to your website can lead to more conversions. As mentioned before, you have more opportunities to gain more new customers if you increase the quality of your traffic.

It also leads to more conversion, if you keep in mind that traffic is not just about the number of visitors, but also how ready they are to buy from you. Still, only having many visitors won’t do your business good.

That makes focusing on conversion rates more critical. By doing that, you concentrate more on targeting the right audience instead of blindly bringing visitors to your site. Your number of visitors will likely drop, but then their quality will significantly increase.

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If you are generating the right kind of targeted traffic to your website – the kind that is actively searching for content about certain kinds of products or services – and if your website manages to deliver the content they need, you’ll end up with happy, satisfied visitors who’ll have no qualms of going back to your website on a regular basis. This would truly be a big boost to your brand’s online reputation, which will be catapulted to even greater heights once these satisfied web visitors start telling other people about your brand, product or services.

While it can take time to learn how to promote a website, it is important to focus on being patient. It can take a few weeks, or months before you notice a significant increase in traffic and your online ranking. For additional information on how to promote a website, contact WebTargetedTraffic today!

Over to you

What are you doing to both increase traffic and boost conversion rates to your online business? Is there a specific technique that’s working for you right now? If you have any tips you’d like to share, please leave me a comment below as usual.

 

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