What is ROI?
By David Cradduck
ROI is the abbreviation for Return on Investment. When making investments whether in real estate, stocks, or other assets, a person should consider what the return on investment will be. A return on investment is the percentage of profit you receive, or expect to receive based on the money you put into the investment. Some investments have higher rates of return than others, but the rate of return is usually balanced out by risk. Higher rates of return often are riskier investments, while investments with a lower rate of return usually have lower risk.
Concept of Landing Page Conversion
Creating a web site and attracting visitors is an investment in time and money. For this investment in time and money a site owner would hope to get money in return. One can therefore think of landing page conversions as related to a web site’s ROI. A landing page that converts visitors into sales, which leads to profits is obviously a primary goal of site owners. In some cases though, the landing page is designed to convince users to give their name and contact information to the site owner via a form of some kind. Although this type of landing page element is not a sale in the traditional sense of the word, the names on the mailing list that has been gathered will be contacted and attempts at sales will be made. So generally speaking, regardless of whether or not a sale is to be made right away or somewhere down the line, a landing page that converts is of utmost importance. Low conversions equal a low ROI when considering the time and money that is often put into web site development. Conversely high conversion, can be thought of as a good or high ROI.
Landing page conversion rates are affected by a variety of factors. When starting a business or new on-line venture, these factors need to be thought about and implemented into any new site design. Web site visitor conversion optimization is the idea that visitor conversion rates can be tracked and studied, then modified to increase conversions.
Why spend time, money, and energy creating a web site that is supposed to generate sales, but not study what factors are affecting sales. Most successful sites are implementing some sort of conversion rate studies. The fact that they do this is a major contributor to their success. They are identifying what landing page factors are leading to conversion of customers into sales, and which factors can be changed in a positive way that will lead to more customers performing a desired action on their site. Owners of small sites or large sites really should consider conversion optimization as a way to improve the bottom line of a site, or business.
What Were The 7 Tweaks That Doubled Conversions?
