Gold digging from your Website with Traffic Truffle and CRO

Calculating Value of ‘Conversion Rate Optimisation’ (CRO)

As an example, let’s look at a hypothetical Commercial Legal Services business that has a website, has some PPC, SEO and Social Advertising activity but has NOT invested yet in CRO.

It’s website achieves 1000 unique visitors per/month.  It receives approximately 10 email and/or telephone enquiries from visitors to the website. It turns 5 of these 10 enquiries into a sale. The annual value of an average customer is $20k.

Therefore:

Visitor to Enquiry Conversion rate = 1000/10 = 1%

Enquiry to Customer Conversion rate = 10/5 = 50%

Visitor to Customer Conversion rate = 1000/5 = 0.5%

Therefore, the ‘annual new revenue’ value of new customers from digital marketing could be described as:

12-months x 5 new customers x $20k average per year = $1,200,000

Note:

The Lifetime Value (LTV) of a client should also be factored into the calculation, which, depending on the business could raise the figure of ‘annual value added’ by circa 3x the figure above.

 

The Results of the Application of a CRO Project

The same legal services business hires a digital agency to improve the website design with the aim of increasing the visitor to customer conversion rate, plugs in the Traffic Truffle Lead Nurturing automation tool and trains it’s sales staff to proactively engage with those business leads that Traffic Truffle identifies as visitor’s to the company website.

The results of this work are;

The business now has 1000 unique visitors per/month. With its increased conversion rate it now receives approximately 20 email and/or telephone enquiries from visitors to the website. It continues to turn half of these enquiries into sales at the same average annual value.

Having pulled it’s ‘positioning’ and ‘lead nurturing’ levers effectively, 1 year later the same business now shows the following results:

12-months x 20 new customers x $20k average per year = $2,400,000

As you can see, a doubling of effectiveness of Conversion results in a 2x increase in annual sales (derived from digital marketing activity) of the business.

Not a bad return for a website refresh, low cost marketing automation tool and an updated sales process!