Have you ever wondered just how much your online sales could improve? I’ve developed a nifty calculator that lets you see how conversion rates impact online sales.
HOW TO USE THE CALCULATOR
It’s fairly simple to use. All you need to do is enter a handful of variables to begin to see the dramatic impact that conversion rates have on online sales.
If your store carries multiple products, simplify this exercise for 1 of your best selling items. You’ll enter variables into the calculator such as:
- website traffic,
- average number of sales,
- product price, and
- current conversion rate.
Your visitor to customer conversion rate is a percentage that’s found by dividing (# of buyers by / # of website visitors). Let’s say you have 100 buyers and 1,000 website visitors. In that scenario, 100/1,000 = 10% conversion rate.
Keep in mind, conversion rates tend to be fairly low. Many websites operate at a conversion rate under 3%. This is a mountain of missed opportunities. It means that the vast majority –as much as 97% simply visit and leave the website without making a purchase.
CONVERSION RATE IMPACT ON SALES
Here’s an example, let’s say your 50,000 people visit your website on a monthly basis. Your product sells for $50.00. At a 1% conversion rate (buyers/visitors %), your product sales are around $42,500.
What would happen if your conversion rate rose from 1% to 2%. At 2% conversion rate, your sales could jump to $85,000.
This leap in monthly revenue is achieved using existing website traffic resources, marketing assets, and existing tools. By improving your conversion rates, you are maximizing the potential of your existing marketing budget.