In the realm of marketing, marketers are faced with the task of increasing both website traffic and conversions. Yet, does one hold more weight than the other? By determining which aspect of marketing results in greater revenue generation, you can optimize your resource allocation to support the most critical aspects of your campaign. Here is everything you need to know about traffic and conversions and the impact they have on your marketing.
What Is the Difference Between Traffic and Conversions?
Traffic refers to the number of visitors you have to your website every day, whereas conversions refer to the number of visitors who actually take action by investing in your products or services. Your conversion rate can be calculated by dividing your conversions by the number of visitors you have to your website. For instance, if you receive approximately 5,000 visitors a month and convert 10 of those visitors, you have an average conversion rate of 0.2 percent.
Which Has Greater Impact on Profits?
Both traffic and conversions play a role in revenue generation. After all, without receiving any visitors, you'll have no chance at conversions, but if none of your visitors convert, you'll receive no revenue from your traffic. The fact of the matter is, your website and marketing strategy need to be optimized to fuel both traffic and conversions. There is a pervasive myth that an increase in traffic is a positive thing and will ultimately result in more sales. However, if your website isn't optimized for conversions, then an increase in traffic could result in stagnating conversions and a declining conversion rate.
Quality Over Quantity
When it comes to website traffic, quantity should be of little concern. Instead, you need to focus your strategy on ensuring only the highest quality of visitors land on your site, which will support higher conversion rates and increased revenue. The traffic you capture depends largely on your marketing campaign. By creating a targeted and personalized ad campaign, you can increase engagement among your audience and improve the quality of leads, resulting in higher conversions as a result.
Conversions are the drivers of revenue and should be the core focus of marketing.
Finding the Balance Between Traffic and Conversions
Both traffic and conversions are critical to a marketing strategy, but in terms of revenue, finding ways to increase conversions should be a bigger priority. You need to ensure that the traffic you receive is of the highest quality, so conversions increase along with traffic and you can steadily improve your conversion rates. With a data management platform, like marketing automation, you'll be able to improve data quality and lead scoring to determine which website visitors are most likely to convert.
Marketing automation makes it easy to segment your customer data based on behavior, habits, and other relevant indicators. You can then create personalized advertisements that appeal directly to your audience, enabling you to capture the right type of traffic from the start. With a lead scoring system, you'll be able to assess the traffic that's most relevant to your website and most likely to lead to conversions, thus enabling you to allocate funds in a way that supports your most promising leads.
ReachForce SmartForms helps marketers increase revenue contribution by solving some of their toughest data collection and management problems. We understand the challenges of results-driven marketers and provide solutions to make initiatives like landing pages better. Whether you have an acute pain to solve today or prefer to grow your capabilities over time, ReachForce SmartForms can help you improve your lead generation efforts at your own pace.