Which one is more important, conversion or traffic?

When a company develops to a certain level, investing limited resources in drainage or transformation is a problem that remains unchanged for thousands of years. The author of this article tells us his thoughts and experience through a few simple examples.

▌Why conversion is more important than traffic

From a sales perspective, conversion is more important than traffic.

More and more conversions mean more and more transaction volume, but more and more traffic may not necessarily lead to an increase in transaction volume.

The picture below looks familiar, right?

If you want to increase your revenue, this is why conversions are more important than traffic.

More traffic does not always equal more transaction volume. If you bring in a lot of traffic but it is the wrong traffic, the visitors will jump out and will not bring transactions. Here are some reasons why sales will decrease if traffic increases:

The content of the web page does not match the intention of the traffic brought by the search terms.

The topic of the website content is not directly related to the products or services you sell.

The content of the website is directly related to what you sell, but is the top of the funnel (TOFU, Top of Funnel Content) in the initial research phase, not the final purchase phase.

The company image displayed on the website is terrible and cannot convince potential customers to buy from you.

The content of the website is confusing or difficult to understand.

Your lead acquisition table is broken or converted and no longer works.

The condition for the increase in conversions to increase in traffic is that traffic must include a high-quality audience (i.e., a user group with strong purchasing intentions) and these high-quality users are imported into highly converted pages. For example, for Profitworks websites, the most traffic page links to a free accounting software. We offer this for free because many of our customers are small businesses. But since this page is not the page of our sales content (SEO services) at all, we have never got leads from this page. It brings a lot of traffic to the website, but it does not bring conversions or transactions.

On the other hand, if we are committed to improving the conversion rate of the homepage of our website, we are expected to increase the conversion rate of 10 leads per month or 1% to 20 leads per month or 2% conversion rate, and I can guarantee that you will definitely see sales increase.

▌Double conversions easier than adding traffic

In a simple A/B test, we once increased the conversion of web pages by up to 600%, and usually more than 50%. It usually takes several weeks to create and run this test. On the other hand, it usually takes several months to get the same increase in web traffic, and we usually put in three to four times the workload of this A/B web test.

Here is a good example: Suppose your website has 10,000 visitors per month, and these traffic brings 100 transactions. For the sake of discussion, let's assume that each customer brings 1,000 US dollars in transactions, then your website currently generates 10,000 US dollars in transactions.

Now if you want to double your transaction volume, here is a comparison of the probability and difficulty coefficients of success to achieve your goal by increasing conversions and increasing traffic:

Another important factor to look at here is that usually when your traffic increases, your conversion rate will not maintain a steady growth, and will actually decline. Therefore, in this case, the chance of achieving a monthly increase of 10,000 sales by doubled traffic rather than doubled conversion is relatively low.

通常流量显著提高的时候，转化会下降10-20%。就算只下降10%，新带来的流量每个月只能带来8000美金的交易额增长。要完成目标销售额增加的任务，你需要额外带来1222个流量会话。

▌The benefits of increasing conversion rate are greater than those of increasing traffic

Realizing that increasing conversion rates rather than increasing traffic will lead to better benefits.

Based on the reasons mentioned above, if the traffic increases but the conversion rate is very low, it will be of little benefit to the increase in your transaction volume. On the contrary, if you optimize the conversion rate first and then increase the traffic, it will lead to a very optimistic transaction volume. Please see the picture below:

In the first six months of our efforts to increase conversions or increase traffic, based on experience, the monthly transaction volume growth target is easily achieved.

Investing in a website can yield huge returns. No matter what strategy you are studying, investing in a website is definitely the best marketing decision that can bring beautiful ROI. From our data, we can see that the conversion rate growth plan can bring an average of 275% ROI, or an additional benefit of $2.75 per dollar spent.

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