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Most business websites are developed for a specific purpose. They are focused on achieving a desired outcome from a particular audience. A website conversion happens when a visitor to your site takes the desired action, and likely represents a measurable value to your business.
Calculating the value of a conversion can go a long way in justifying an ongoing landing page optimization strategy. While most online marketers would agree that increasing conversion rates is critical, determining the actual financial impact of increased conversion rates can help you make the case to others in your organization.
One simple formula that can be used to measure the impact of conversion improvement is:
R x CIP x (1-VCP) = Profit increase
Read on to learn how to apply this formula to your website