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Atricle Dump - Uncovering the Web Profitability Equation to Surge Your Website's Performance
Sometimes in business we are so involved in the little things that we forget to refer back to the top of the pyramid. At the top of this pyramid is your company’s brand. This is a reminder as to how important your brand is and how properly executing it illustrates its true essence.The Umbrella Over Your BrandYour brand is how you want to be perceived and what your consumers expect. It is the umbrella over your entire company. Some may think logos, commercials, and glossy photos make up a brand. This is not true - those are marketing plans that only present the brand.A businesses brand is the overall character and quality of the business. Big businesses have sub brands for other products and services, yet they all relate back to the overall brand, never shying away
Focus on Conversion EXAMPLE C.
Focus on Both Sides
Advertising Cost $5,000.00 $5,000.00 $5,000.00
Cost per Visitor $0.50 $1.00 $0.50
Number of Visitors 10,000 5,000 10,000
Website Conversion 0.5% 3.0% 3.0%
Number of Sales 50 150 300
Average Sale Price $50 $50 $50
Revenue $2,500.00 $7,500.00 $15,000
Profit - $2,500.00 $2,500.00 $10,000.00
Cost per Sale $100.00 $33.34 $16.67
The combination of quality traffic and website conversion equals higher profits. This is a basic concept yet has powerful strategic value. For example, paid search using Yahoo! Search Marketing or Google Adwords provides superior advantages to marketers. However, most marketers focus on increasing their click-through rates and expanding their keyword lists versus re-designing their websites (or using landing pages) to convert greater numbers of paid search visitors. Some Ideas For A Fundraising Event That May Be A Little Different
For many people organizing a fundraising event can be quite tricky. But below we provide a number of different ideas that you may want to try for your next fundraising event. However in order to maximize your fundraising event idea to achieve maximum success it is important that you create public awareness of it within the community where you live. It is vital that you tell these people they reason as to why the fundraising event is taking place and where it will be held.Now let us look at some different fundraising event ideas which you may want to consider.1. Rubber Duck DerbyThis is not only easy to organize but it can be a great fun fundraising event as well. Plus you can scale it down to fit the size of your group's supporter base. However, what you will need is a local
Today more than ever, stakeholders ranging from Wall Street, to Boards, to private investors demand higher and quicker returns on their investments. The question though is how?
The “Web Profitability Equation” provides the structure to answer “how” for your website. The Web Profitability Equation is simply calculated as:
Advertising Traffic (quality) x Website (conversion rate) = Profitability
All online marketing strategies flow through this equation. Unfortunately a majority of marketers spend their time on the lefts-side of the equation and pursue strategies to generate more and more advertising traffic to their websites.
Certainly this approach generates a level of results just as a business closing more sales generates greater revenue. However, just like a business, more sales don’t equal more profits if the operational costs consume all of the sales proceeds. Likewise, more advertising traffic to your website may generate incremental sales but if your website doesn’t “convert” the traffic, a greater number of your visitors abandon your website as an operational expense.
In his national bestseller, “Why We Buy – The Science of Shopping”, author Paco Underhill pinpoints the essence of the Web Profitability Equation while discussing his findings in a traditional retail setting. He states,
Marketing, advertising, promotion and location can bring shoppers in, but then it’s the job of merchandise, the employees and the store itself to turn them into buyers.
Your website or custom-developed “landing pages” is an essential strategic element to your website’s success. It is as important as the type of advertising you perform and deserves an equal level of attention and commitment. Your website’s ability to “turn” visitors into prospects and customers (a process called “conversion”) enables you to achieve results. As Paco Underhill continues to explain,
Conversion rate measures what you make of what you have – it shows how well (or how poorly) the entire enterprise is functioning where it counts most: in the store.
By focusing your attention on converting greater numbers of visitors, your website becomes more “operationally efficient”. And as with a traditional business, a $1 gain in sales only delivers a percentage increase to your bottom line profits while a $1 gain in operational efficiency delivers a full $1 addition to your bottom line profits.
However, as the Web Profitability Equation shows, a balance has to exist between quality advertising traffic and website conversion. Too much attention especially advertising hinders the other. Ideally, by optimizing both sides of the equation, you reach the highest levels of profitability.
Let me demonstrate this further through examples. Let’s assume that you have $5,000 to spend on advertising. In Example A. you focus on your advertising strategies and reduce your costs to $0.50 per visitor through shrewd management of your paid search campaigns. In example B. you spend the same amount on advertising but pay attention to only increasing your website’s conversion rate. It achieves solid financial results but at a greater expense than Example C. where you focus on shrewd paid search management AND increasing your website’s conversion rate.
Which one would you choose?
EXAMPLE A.
Focus on Advertising EXAMPLE B.
Focus on Conversion EXAMPLE C.
Focus on Both Sides
Advertising Cost $5,000.00 $5,000.00 $5,000.00
Cost per Visitor $0.50 $1.00 $0.50
Number of Visitors 10,000 5,000 10,000
Website Conversion 0.5% 3.0% 3.0%
Number of Sales 50 150 300
Average Sale Price $50 $50 $50
Revenue $2,500.00 $7,500.00 $15,000
Profit - $2,500.00 $2,500.00 $10,000.00
Cost per Sale $100.00 $33.34 $16.67
The combination of quality traffic and website conversion equals higher profits. This is a basic concept yet has powerful strategic value. For example, paid search using Yahoo! Search Marketing or Google Adwords provides superior advantages to marketers. However, most marketers focus on increasing their click-through rates and expanding their keyword lists versus re-designing their websites (or using landing pages) to convert greater numbers of paid search visitors. Raise Your Income!
How often do you sit around and wonder how to make more money and get more people to buy more from your company? It’s one of the most basic problems every company faces.The answer is astonishingly simple. Too simple maybe. But I’ve seen it work over and over again with our customers in every line of business you can imagine.You have to promote. Your income is governed by the size of your customer base and how often and effectively you communicate with those customers.So raising your income is simply a matter of keeping in touch with your existing customer base, reminding them you are there, offering them goods or services they might be interested in, in such a way that they want to buy more and more often from you. And increasing the size of your customer base by finding and contacic to their websites.
Certainly this approach generates a level of results just as a business closing more sales generates greater revenue. However, just like a business, more sales don’t equal more profits if the operational costs consume all of the sales proceeds. Likewise, more advertising traffic to your website may generate incremental sales but if your website doesn’t “convert” the traffic, a greater number of your visitors abandon your website as an operational expense.
In his national bestseller, “Why We Buy – The Science of Shopping”, author Paco Underhill pinpoints the essence of the Web Profitability Equation while discussing his findings in a traditional retail setting. He states,
Marketing, advertising, promotion and location can bring shoppers in, but then it’s the job of merchandise, the employees and the store itself to turn them into buyers.
Your website or custom-developed “landing pages” is an essential strategic element to your website’s success. It is as important as the type of advertising you perform and deserves an equal level of attention and commitment. Your website’s ability to “turn” visitors into prospects and customers (a process called “conversion”) enables you to achieve results. As Paco Underhill continues to explain,
Conversion rate measures what you make of what you have – it shows how well (or how poorly) the entire enterprise is functioning where it counts most: in the store.
By focusing your attention on converting greater numbers of visitors, your website becomes more “operationally efficient”. And as with a traditional business, a $1 gain in sales only delivers a percentage increase to your bottom line profits while a $1 gain in operational efficiency delivers a full $1 addition to your bottom line profits.
However, as the Web Profitability Equation shows, a balance has to exist between quality advertising traffic and website conversion. Too much attention especially advertising hinders the other. Ideally, by optimizing both sides of the equation, you reach the highest levels of profitability.
Let me demonstrate this further through examples. Let’s assume that you have $5,000 to spend on advertising. In Example A. you focus on your advertising strategies and reduce your costs to $0.50 per visitor through shrewd management of your paid search campaigns. In example B. you spend the same amount on advertising but pay attention to only increasing your website’s conversion rate. It achieves solid financial results but at a greater expense than Example C. where you focus on shrewd paid search management AND increasing your website’s conversion rate.
Which one would you choose?
EXAMPLE A.
Focus on Advertising EXAMPLE B.
Focus on Conversion EXAMPLE C.
Focus on Both Sides
Advertising Cost $5,000.00 $5,000.00 $5,000.00
Cost per Visitor $0.50 $1.00 $0.50
Number of Visitors 10,000 5,000 10,000
Website Conversion 0.5% 3.0% 3.0%
Number of Sales 50 150 300
Average Sale Price $50 $50 $50
Revenue $2,500.00 $7,500.00 $15,000
Profit - $2,500.00 $2,500.00 $10,000.00
Cost per Sale $100.00 $33.34 $16.67
The combination of quality traffic and website conversion equals higher profits. This is a basic concept yet has powerful strategic value. For example, paid search using Yahoo! Search Marketing or Google Adwords provides superior advantages to marketers. However, most marketers focus on increasing their click-through rates and expanding their keyword lists versus re-designing their websites (or using landing pages) to convert greater numbers of paid search visitors. Online Business Ethics
Very simple: Be a source of integrity. Don't be phony, people will know and not come to visit your site again. Even worse, they will post a bad review somewhere on the web and others will not even come to see for themselves. If you don't know about something, don't pretend that you do. Respect your customers, or prospective customers, and offer them something of value. Give good information that will draw your customers' attention and this will help to build trust. It also gives them a reason to stay or come back again for more. Follow-up with your customers, but don't be a pest. Basically, don't spam, don't steal, and don't lie.Just as in an offline business, there are ethics and standards that should be followed. If you are starting an online business, you've probably spent some time online alveloped “landing pages” is an essential strategic element to your website’s success. It is as important as the type of advertising you perform and deserves an equal level of attention and commitment. Your website’s ability to “turn” visitors into prospects and customers (a process called “conversion”) enables you to achieve results. As Paco Underhill continues to explain,
Conversion rate measures what you make of what you have – it shows how well (or how poorly) the entire enterprise is functioning where it counts most: in the store.
By focusing your attention on converting greater numbers of visitors, your website becomes more “operationally efficient”. And as with a traditional business, a $1 gain in sales only delivers a percentage increase to your bottom line profits while a $1 gain in operational efficiency delivers a full $1 addition to your bottom line profits.
However, as the Web Profitability Equation shows, a balance has to exist between quality advertising traffic and website conversion. Too much attention especially advertising hinders the other. Ideally, by optimizing both sides of the equation, you reach the highest levels of profitability.
Let me demonstrate this further through examples. Let’s assume that you have $5,000 to spend on advertising. In Example A. you focus on your advertising strategies and reduce your costs to $0.50 per visitor through shrewd management of your paid search campaigns. In example B. you spend the same amount on advertising but pay attention to only increasing your website’s conversion rate. It achieves solid financial results but at a greater expense than Example C. where you focus on shrewd paid search management AND increasing your website’s conversion rate.
Which one would you choose?
EXAMPLE A.
Focus on Advertising EXAMPLE B.
Focus on Conversion EXAMPLE C.
Focus on Both Sides
Advertising Cost $5,000.00 $5,000.00 $5,000.00
Cost per Visitor $0.50 $1.00 $0.50
Number of Visitors 10,000 5,000 10,000
Website Conversion 0.5% 3.0% 3.0%
Number of Sales 50 150 300
Average Sale Price $50 $50 $50
Revenue $2,500.00 $7,500.00 $15,000
Profit - $2,500.00 $2,500.00 $10,000.00
Cost per Sale $100.00 $33.34 $16.67
The combination of quality traffic and website conversion equals higher profits. This is a basic concept yet has powerful strategic value. For example, paid search using Yahoo! Search Marketing or Google Adwords provides superior advantages to marketers. However, most marketers focus on increasing their click-through rates and expanding their keyword lists versus re-designing their websites (or using landing pages) to convert greater numbers of paid search visitors. Extra Profits At Your Craft Show Booth
I would say the best way to do this is to have a few extras in your craft show booth that aren't full crafts. What do I mean by this? Well, below are a couple of ideas that you can use to improve the overall bottom line in your craft show booth:Pieces for your craft – You make and sell your craft and it might be a popular craft at that. This means that there could be others out there that take part in your craft as well. For example: if you had a booth that had crocheted items, why not have a few needles, some yarn samples and maybe a few other odds and ends that you can purchase inexpensively, and then sell at a little bit of a profit. People who enjoy the same craft as you might not only buy your crafts, but they might be inspired by your work and want to do their own – so give them the chanceProfitability Equation shows, a balance has to exist between quality advertising traffic and website conversion. Too much attention especially advertising hinders the other. Ideally, by optimizing both sides of the equation, you reach the highest levels of profitability.
Let me demonstrate this further through examples. Let’s assume that you have $5,000 to spend on advertising. In Example A. you focus on your advertising strategies and reduce your costs to $0.50 per visitor through shrewd management of your paid search campaigns. In example B. you spend the same amount on advertising but pay attention to only increasing your website’s conversion rate. It achieves solid financial results but at a greater expense than Example C. where you focus on shrewd paid search management AND increasing your website’s conversion rate.
Which one would you choose?
EXAMPLE A.
Focus on Advertising EXAMPLE B.
Focus on Conversion EXAMPLE C.
Focus on Both Sides
Advertising Cost $5,000.00 $5,000.00 $5,000.00
Cost per Visitor $0.50 $1.00 $0.50
Number of Visitors 10,000 5,000 10,000
Website Conversion 0.5% 3.0% 3.0%
Number of Sales 50 150 300
Average Sale Price $50 $50 $50
Revenue $2,500.00 $7,500.00 $15,000
Profit - $2,500.00 $2,500.00 $10,000.00
Cost per Sale $100.00 $33.34 $16.67
The combination of quality traffic and website conversion equals higher profits. This is a basic concept yet has powerful strategic value. For example, paid search using Yahoo! Search Marketing or Google Adwords provides superior advantages to marketers. However, most marketers focus on increasing their click-through rates and expanding their keyword lists versus re-designing their websites (or using landing pages) to convert greater numbers of paid search visitors. Energy Savings by Use of the Correct Spray Nozzle
Rising production costs and fierce competition is resulting in manufacturing companies looking at all aspects of savings, especially energy savings.Spray nozzles of the right specification can lead to significant savings in both energy and raw materials.One of the overlooked areas is the use of the correct spray nozzle. Whilst frequently ignored in the manufacturing process, it is often this item of equipment that is the most important. Header tanks, pumps sophisticated controls, pipe work are all immaterial if the spray nozzle “at the sharp end” is not delivering the right amount of fluid (flow rate) at the correct spray angle and with the right spray pattern. This can lead to excessive wear on the pumps and ancillary equipment resulting in higher energy consumption and related costs.AMPLE B.
Focus on Conversion EXAMPLE C.
Focus on Both Sides
Advertising Cost $5,000.00 $5,000.00 $5,000.00
Cost per Visitor $0.50 $1.00 $0.50
Number of Visitors 10,000 5,000 10,000
Website Conversion 0.5% 3.0% 3.0%
Number of Sales 50 150 300
Average Sale Price $50 $50 $50
Revenue $2,500.00 $7,500.00 $15,000
Profit - $2,500.00 $2,500.00 $10,000.00
Cost per Sale $100.00 $33.34 $16.67
The combination of quality traffic and website conversion equals higher profits. This is a basic concept yet has powerful strategic value. For example, paid search using Yahoo! Search Marketing or Google Adwords provides superior advantages to marketers. However, most marketers focus on increasing their click-through rates and expanding their keyword lists versus re-designing their websites (or using landing pages) to convert greater numbers of paid search visitors.
By balancing your efforts you can also compete in a competitive search market and afford more expensive media placements. The Web Profitability Equation shows that by increasing the quality of your advertising traffic and increasing the conversion rate of your website’s offer - you will generate more sales at a lower cost. Why? Because you are wringing out the waste from your online sales process - visitors not relevant to your offer.
The essence of the Web Profitability Equation is a continual process of thoroughly understanding your customer. As Paco Underhill states,
“Where shoppers go, what they see, and how they respond determine the very nature of their shopping experience. And all of these psychological and anatomical factors come into play simultaneously, forming a complex matrix of behaviors which must be understood of the retail environment is to adapt itself successfully to the animal that shops.”
By attracting your perfect customer through the right advertising and serving them your offer from the right angle on your website, you will increase your profitability. The better you understand your customer, the greater your business success. As “Why We Buy – The Science of Shopping” concludes,
The overarching lesson that we’ve learned from the science of shopping is this: Amenability and Profitability are totally and inextricably linked. Take care of the former, in all its guises, and the latter is assured. Build and operate a retail environment that fits that highly particular needs of shoppers and you’ve created a successful store.
Address both sides of the Web Profitability Equation to serve the demands of your customers. By doing so, you are guaranteed a surge in profits and the sustainability of your web business.
Paco Underhill, Why We Buy: The Science of Shopping, (Simon & Schuster, 1999): 36, 44.
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