Our view: Web traffic is King
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