At Fifth Dimension we regularly talk about “conversion ratios” – almost to the point of being boring. But we think it’s for good reason, and here’s why.
Firstly, it's hard work generating new customers in most sectors and this is especially true for prepaid card and electronic money programmes. With budgets being continually scrutinised then the level at which you can convert prospects to customers has never been more important.
So how we do measure it?
Conversion ratio % =
number of new customers
|number of website visitors|
The graph below shows the number of new customers generated from 20k monthly visits, according to different on-site conversion ratios.
So a programme with 3% conversion will generate 600 new customers per month, whereas a programme with a 6% conversion will generate 1,200 new customers.
We think that’s quite a sizeable difference given what appears to be only a small change in conversion %. But to highlight this further, let’s look at the impact of not improving the performance? The chart below shows that if we wish to still deliver the 1,200 new customers per month at a conversion ratio of 3%, then a programme will also need to double its traffic to 40,000 visitors!
Regardless of how you generate it, that is a lot of new traffic to deliver and is considerably more expensive than optimising your current performance.
We think it's a no-brainer. If you do to, and would like help in measuring and improving the conversion for your current programme, then get in touch with Phil Campbell via email@example.com