Our view: Web traffic is King

Many prospective web-shop owners or B2B online project teams love to get straight in and build the web-site. There is nothing more fun than seeing that cool new front page and popping items into the cart. We believe this is the wrong starting point, question number one should be - Where is the traffic to our site going to come from, its a harder question than what-will-the-site-look-like but is just, if not more, important

Its all about simple maths:

Traffic/Visitors    (multiplied by)    visitor sales conversion rate    (multiplied by)    $ average shopping basket size    
=     $ revenue.

So if you get 10,000 visitors to your website in month and 1% buy something and the average spend is $200, your revenue will be 10,000 x 0.01 x 200 = $20,000

Lets think how the following high level project factors impact the maths:

1 Website Automation/Integration has a small impact on conversion-rate but does reduce ongoing operational costs
2 Site design and ease-of-use has low/medium impact on conversion-rate as most web-shop packages already follow tried and proven buying approaches.
3 Site speed is essential, consumers expect google speed everywhere, large impact on conversion
4 Digital marketing plan & firsy year promotions plan have high impact on conversion-rate, basket-size and traffic
5 Time to go-live & customer acquisition strategy have a huge impact on traffic and conversion-rate

Where will we invest our resources and effort to maximise revenue? Here are a few tips that we believe in based on the 5 factors above:
- More than half your budget and resources should be focused on items 3-5
- Go-live should be as soon as possible to build customer base, keep it very simple, unless you are a $3million turnover site day one you don't need back-office integration day one
- Use traffic analytics to drive release 2, 3 and 4. Plan to release a updated site 6-10 times per year. If you let the site evolve by opinion you will waste budget and delay the improvement in the simple maths equation that leads to revenue

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