Overview of Technology Landscape
Review of Customer Acquisition Channels
Digital Marketing Planning Checklist/Components of a Digital Marketing Plan
Pricing Theory in Practice
Budgeting and Risk/Reward Checklist
Digital Campaign Metrics
Cost/Benefit Analysis of Email Acquisition
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Effective Digital Marketing for Wineries
1. 1The Seminar Group
Presented by:
Ron Scharman
Creating and Budgeting an
Effective Marketing Plan
March 9th, 2016
Direct to Consumer Wine Sales
The Seminar Group
2. 2The Seminar Group
⢠Currently Chief Operating Officer of Chatterbox Wine
Marketing Services and VinoVisit.com
⢠Instructor, SSU Wine Business Institute â 3 Years
⢠Previously 7 years as President of eWinery Solutions
⢠Previously 2 years as COO of New Vine Logistics
⢠Previously 4 years as CEO of Morrell Wine Group
⢠15 years as a specialty retailer
⢠MBA Cornell University Johnson School of Management
⢠Lover of all things food & wine
⢠Passionate about direct to consumer wine marketing
⢠More info on LinkedIn at http://linkd.in/1yfhRm5
Who am I and Why am I here?
4. 4The Seminar Group
Where are We Going Today?
⢠Overview of Technology Landscape
⢠Review of Customer Acquisition Channels
⢠Digital Marketing Planning Checklist/Components of a Digital
Marketing Plan
⢠Pricing Theory in Practice
⢠Budgeting and Risk/Reward Checklist
⢠Digital Campaign Metrics
⢠Cost/Benefit Analysis of Email Acquisition
9. 9The Seminar Group
â The notion of connecting a luxury
wine brand with its wider digital and
cultural ecosystem is now a matter
of survival.â
Ron Scharman
Wine Consumer Advocate
10. 10The Seminar Group
The evolution from early 2000âs to present day, âpersonal computingâ has changed 10 fold.
Whatâs changed? Bigger, More Complex Sites
2003 2015
20032003
2007
11. 11The Seminar Group
Looked at Another Way
The faithful gather in 2005 near St. Peter's to witness Pope John
Paul II's body being carried into the Basilica for public viewing.
St. Peter's Basilica at the Vatican, on March 13, 2013
14. 14The Seminar Group
MORE PCâS GATHER DUST
*Source: U.S. Commerce Dept., Internet Retailer
44%
11%
45%
Percentage of time on retail web sites
Smartphone
Tablet
PC
16. 16The Seminar Group
THINGS TO WATCH: MILLENNIALS
ďź The crowd is here
ďź Comfort level with mobile
transactions
ďź Ease of purchasing
ďź Millennials
ďź Growing FAST!
20. 20The Seminar Group
DTC Engagement: 360 Degree Customer View
eCommerce
Wine Club
Allocations
Tasting Room
Recipe Engine
Social Media
(Social Commerce)
Mobile
Telesales (inbound &
outbound)
SMS (Text)
Email Marketing
Visitor
Reservations
Newsletter
Mobile POS
Search Engine
Optimization (SEO)
Retail Locator
Winery
commerce
ecosystem
21. 21The Seminar Group
Customer Acquisition Channels
⢠Wine club signup
â Most traditional tasting room business model
⢠Digital and Social Marketing
⢠Email Campaigns
⢠Telesales
⢠Direct Mail, Catalog
â Can still be effective; can drive ecommerce conversions
⢠Social media, events, other
30. 30The Seminar Group
NOW WHAT.
LETâS TALK ABOUT THE ACTUAL
COMPONENTS OF A DIGITAL
MARKETING PLAN
31. 31The Seminar Group
WHAT MAKES UP A DIGITAL MARKETING PLAN
1. OBJECTIVE 2. STRATEGY 3. TACTICS 4. SCHEDULE
32. 32The Seminar Group
WHAT MAKES UP A DIGITAL MARKETING PLAN (4 CORE THINGS)
1. OBJECTIVE
2. STRATEGY
3. TACTICS
4. SCHEDULE
(*Why*) The over-arching business problem you
were tasked with solving
(*What*) Your approach, the layer between the
business problem, and how exactly you did it.
(*How*) The means you took to satisfy your
strategy, the actual details of how you executed
(*How Much*) Which partners, for how much, and
how long.
33. 33The Seminar Group
WHAT MAKES UP A DIGITAL MARKETING PLAN
1. OBJECTIVE 2. STRATEGY 3. TACTICS 4. SCHEDULE
34. 34The Seminar Group
WHAT MAKES UP A DIGITAL MARKETING PLAN
⢠Your objective should come from:
⢠A company-wide KPI (drive new customers or more visitors)
⢠Ownership/Senior marketing lead/DTC manager (CMO)
⢠The closest senior member of your team
1. OBJECTIVE
(*Why*) The over-arching business problem
you were tasked with solving
⢠Your objective should be:
⢠Clear
⢠Actionable
⢠Map directly to a company-wide KPI
35. 35The Seminar Group
WHAT MAKES UP A DIGITAL MARKETING PLAN
EXAMPLES OF OBJECTIVES:
1. OBJECTIVE
(*Why*) The over-arching business problem
you were tasked with solving
Increase the number of website visitors and/or conversions
Increase the # of email addresses we have in our database
Increase visitor traffic/wine club signups at the winery
tasting room
36. 36The Seminar Group
WHAT MAKES UP A DIGITAL MARKETING PLAN
⢠Your strategies should come from:
⢠You.
⢠Should always answer how you plan to take action before you know
anything about executing
2. STRATEGY
⢠Your strategies should be:
⢠Clear
⢠Actionable
⢠Map directly to your objective (how are they solving your biz problem?)
⢠The hardest part of a digital media plan.
(*What*) Your approach, the layer between the
business problem, and how exactly you did it.
37. 37The Seminar Group
LETS MARRY THEM TOGETHER
Target your demographic audience on the
social networks they visit most with best
selling wines, or other special offers
Encourage new site visitors to redeem an
introductory offer in exchange for their
email address
Drive traffic by promoting off-site tasting
events and community-oriented events,
focusing on Bay Area residents
1. OBJECTIVE 2. STRATEGY
Increase the number of website
visitors/conversions
Increase the # of email addresses
we have in our database
Increase visitor traffic/wine club
signups at the winery tasting
room
38. 38The Seminar Group
5. PRICING 6. COSTING
7. PARTNER
SELECTION
WHAT MAKES UP A DIGITAL MARKETING PLAN
1. OBJECTIVE 2. STRATEGY 3. TACTICS 4. SCHEDULE
40. 40The Seminar Group
BUDGETING FOR YOUR TACTICS ANSWERS 2 QUESTIONS:
If I had one dollar, where
would I spend it.
If I had a 2nd dollar, where
would I spend it.
41. 41The Seminar Group
HOWEVER YOU ANSWERED THE LAST QUESTION:
AD DOLLARS GENERALLY ARE RESPONSIBLE
FOR DOING 1 THINGâŚ
(BESIDES INCREASING AWARENESS OF YOUR
BRAND)
42. 42The Seminar Group
WHAT DOES $1 DO FOR THE DIGITAL MARKETER
TRAFFIC
WEBSITE
TASTING
ROOM
APP 3-Tier PRINT/WEB
43. 43The Seminar Group
ONCE TRAFFIC IS IN THE DOOR IT CAN DO MANY THINGS (DIGITALLY-FOCUSED)
BOOK A TASTING
BUY WINE
JOIN A WINE CLUB
POST A REVIEW
DOWNLOAD RECIPES
RE-ENGAGEMENT
SHARES
BROWSE - TIME ON
SITE
VIDEO PLAYS
ENTRIES/VOTES
44. 44The Seminar Group
5. PRICING 6. COSTING
7. PARTNER
SELECTION
WHAT MAKES UP A DIGITAL MARKETING PLAN
1. OBJECTIVE 2. STRATEGY 3. TACTICS 4. SCHEDULE
46. 46The Seminar Group
BACKGROUND ON HOW AD PRICING WORKS
CPM
(cost per
thousand)
CPC
(cost per click)
Publisher charges you every time:
CPL
(cost per lead)
MOST COMMON
(EARLIEST FORM OF PRICING,
LEAST RISKY FOR PUBLISHER)
INCREASINGLY COMMON
(MORE RISK TAKEN ON BY PUBLISHER)
RAREST
(MOST RISKY FOR PUBLISHER, GENERALLY
WILL OWN THE SIGNUP EXPERIENCE)
Display/Websites
Paid Search
Paid Social
Lead Gen
companies
(Lead Genius)
47. 47The Seminar Group
DIGITAL AD PRICING FORMULAS
CPM
COST PER THOUSAND
(COST/IMPRESSIONS) *
1000
CPC
COST PER CLICK
COST/CLICK
Ad Buying Pricing Units
(how all online ads are bought and sold)
PRO TIPS:
CPM: Better for brand advertisers.
CPC: best for Direct-response advertisers; most of you should be buying on a CPC.
CPL: Best for B2B
CPL
COST PER LEAD
COST/LEADS
48. 48The Seminar Group
WHAT DOES THE AD PRICING MARKET LOOK LIKE
Inexpensive
Average
Expensive
CPM
$1.25 $3.50 $5-$15+
CPC
$0.25 $0.50-$0.75 $1.50+
CPL
$25 $50 $100+
All these prices completely
depend on your site, pricing, and
business
49. 49The Seminar Group
AVERAGE CPC GUIDELINES (ACTUAL MAY DIFFER)
Base Additions (each is an incremental cost)
Avg. Untargeted
CPC Gender Age Interest Occupation Education Geo
$0.35 +$0.25 +$0.25 +$0.30 +$0.25 +$0.15 +$0.45
But a fully loaded CPC would be $2.00
50. 50The Seminar Group
AVERAGE CPC GUIDELINES + OBJECTIVES
Base Additions (each is an incremental cost)
Avg. Untargeted
CPC Gender Age Interest Occupation Education Geo
$0.35 +$0.25 +$0.25 +$0.30 +$0.25 +$0.15 +$0.45
In other words, a fully loaded CPC would be $2.00
51. 51The Seminar Group
5. PRICING 6. COSTING
7. PARTNER
SELECTION
WHAT MAKES UP A DIGITAL MARKETING PLAN
1. OBJECTIVE 2. STRATEGY 3. TACTICS 4. SCHEDULE
55. 55The Seminar Group
CHECK YOUR SPEEDOMETER:
AGGRESSIVE OR CONSERVATIVE DRIVER?
IDENTIFYING YOUR APPETITE FOR RISK
56. 56The Seminar Group
AGGRESSIVE
WHEN AN AGGRESSIVE STRATEGY IS RIGHT FOR YOU
ROI
VOLUME
⢠You are looking to acquire as many new
customers as possible in an effort to
gain traction and grow wine brand
awareness.
⢠Or you are have fewer metric constraints
(spending our budget is more important
than measuring it!)
⢠This strategy means being comfortable
with a higher cost per acquisition in
exchange.
57. 57The Seminar Group
AGGRESSIVE OR CONSERVATIVE?
CONSERVATIVE
ROI
VOLUME
⢠Looking to maintain the best profit
margin possible,
⢠You are much more metrics-driven, or
potentially cash-strapped.
⢠This strategy comfortable with simply
acquiring less new customers.
58. 58The Seminar Group
ďąAre you comfortable acquiring new users at a loss? (spend $10, make $5)
ďąAre comfortable acquiring new users & breaking even? (spend $10, make $10)
ďąIf we break even or lose money now, can we monetize these users in 3,
6, 12 months?
ďąHow good were we this month at getting our existing customers to come
back and spend time on our site?
ďąHow many new users do you want to acquire, and in what time frame?
HINT: âAs many as possible ASAPâ is not good enough. Be specific.
YOUR CHECKLIST FOR RISK & COSTING
59. 59The Seminar Group
5. PRICING 6. COSTING
7. PARTNER
SELECTION
WHAT MAKES UP A DIGITAL MARKETING PLAN
1. OBJECTIVE 2. STRATEGY 3. TACTICS 4. SCHEDULE
60. 60The Seminar Group
BEFORE COMPLETING A DIGITAL
MARKETING PLAN YOU HAVE
TO PROJECT WHAT YOUR
EFFORTS WILL DELIVER
61. 61The Seminar Group
LETâS SAY YOU RUN A WINERY THAT HAS THE
FOLLOWING CRITERIA:
EXAMPLE
WORLDâS GREATEST WINES
Price $100
Goal ROI 200%
Goal New Customers 1,000
Average Conversion
Rate
2.00%
Expected Cost Per Click $1.00
62. 62The Seminar Group
IF WE WANT 1,000 NEW CUSTOMERS
AND OUR SITE HAS A 2.0% CONVERSION RATEâŚ
HOW MUCH TRAFFIC DO WE NEED TO DRIVE?*
EXAMPLE
*Yes, weâre assuming this new traffic would convert at the same rate as our current traffic, which may or
may not happen. This is modeling, though â itâs not perfect, but itâs useful for our purposes here.
VISITS = NEW USERS/CONVERSION RATE
63. 63The Seminar Group
WE NEED 50,000 VISITS FOR 1,000 NEW CUSTOMERS.
SO HOW MUCH COULD 50K VISITS COST US?
>> TRAFFIC COST: 50,000 VISITS * $1.00/CLICK = $50,000 AD
SPEND
EXAMPLE
64. 64The Seminar Group
HOW MUCH WOULD I NEED TO SPEND TO HIT MY
TARGET ROI OF 200%?
>> TRAFFIC COST: 50,000 VISITS * $1.00/CLICK = $50,000 AD SPEND
>> CONVERSION: 50,000 VISITS * 2.00% CR = 1,000 CUSTOMERS
>> REVENUE: 1,000 CUSTOMERS * $100 PRICE = $100,000 REVENUE
>> $100,000 REVENUE/$50,000 SPEND = 200% ROI
EXAMPLE
So under these circumstances, we could hit our ROI Goal & New Customer Goal, with a
$50,000 marketing budget.
Donât have $50k? Adjust goals accordingly, this is important!
67. 67The Seminar Group
If You Do Not Pay to Advertise on
Facebook, It Is Estimated That You Only
Reach 3-5% of Your Fan Base
Forbes.com
68. 68The Seminar Group
LAST BUT NOT LEAST,
BEFORE DOING ANY ADVERTISING
THINK:
HOW GOOD ARE WE DOING THINGS
NOW BEFORE WE PAY FOR TRAFFIC?
69. 69The Seminar Group
ďąWhat is the Conversion Rate, Average Order Value, and Time Spent for:
ďąOur best traffic source
ďąOur worst traffic source (with the most visits)
ďąOur highest traffic source
ďąDo we have appropriate landing pages to make our desired action as simple &
easy as possible
ďąAre we confident that paid traffic is going to help us do more of the desired action
we want
ďąAre we maximizing what we are getting out of our organic/free traffic (existing
partnerships, search, etc.)
YOUR CHECKLIST FOR HOW GOOD WE ARE
70. 70The Seminar Group
Customer Acquisition
⢠Wine club signup
â Most traditional tasting room business model
⢠Digital and Social Marketing
⢠Email Campaigns
⢠Telesales
⢠Direct Mail, Catalog
â Can still be effective; can drive ecommerce conversions
⢠Social media, events, other
71. 71BUS-800-101-16-SU
Wine eCommerce
Email Still Rules
EMAIL MARKETING ROI
According to Exact Target and HubSpot:
⢠Companies view email marketing as a better return on investment
than PPC, content marketing, social media, offline direct
marketing, affiliate marketing, online display advertising, and
mobile marketing.
⢠Email Marketing has an ROI of 4,300% (Based on marginal cost).
⢠66% of in-house marketers rate email as having âexcellentâ or
âgoodâ ROI
75. 75The Seminar Group
Letâs Do the Math
So letâs do the math:
⢠Letâs say you sent 12 marketing emails in the past year to your subscriber list of an average
5,000 members during the year.
⢠Thatâs 60,000 emails sent, and you had an opening rate of 30%, or 18,000 emails opened.
⢠Your CTO calculated out to be 20% of 18,000 emails, or 3,600 unique clicks.
⢠You ended up with a 5% conversion rate, which resulted in 180 orders totaling $54,000, or an
average order size of $300 (exclusive of shipping & tax).
⢠Your net revenue for the year equals $54,000/5,000 emails, or $10.80 per email subscriber.
⢠Assuming an average 3 year tenure for an email subscriber (LTV), net revenue jumps to $32.40.
⢠Discount LTV by weighted average of Loyalty Coefficient.
76. 76The Seminar Group
Final Thoughts
Things to consider in your DTC marketing strategy:
⢠What makes you different or your story compelling?
⢠How do you deliver the message to visitors in person or digital?
⢠Why should they care?
⢠What is your plan for building and maintaining customer loyalty?
78. 78The Seminar Group
Contact Info
Ron Scharman
Chatterbox/VinoVisit
ron@chatterboxwinemarketing.com
707-556-2322
Find Me on LinkedIn at http://bit.ly/1WyFHpA
Hinweis der Redaktion
Prospects want content that relates to their interests. Think beyond your wine, and connect with a broader lifestyle.
What we find, and why this relates to site design, is that so many ecommerce companies say to themselves, âI need to increase revenue! I need to increase visits!â Well, yes, this is true, but itâs not the whole picture.
Conversion rate is actually a pretty good high-level indicator of the performance of your site design. That may be a new way to describe site design for many of you. It might look absolutely stunningly gorgeous, but if your redesign drives half the conversion rate of your previous site, then itâs performing poorly.
As an industry benchmark - and this does vary depending on a number of factors - a conversion rate between 1% and 2% is what weâd call healthy. Really we love to see 1.5% and higher, but for some sites 1% is okay too. If youâre less than 1%, things become very difficult for you. Hereâs why:
Letâs go back to our friend who wants to increase revenue by increasing visits. Obviously, any significant increases will result from successful marketing and/or advertising campaigns, which typically cost money. If your site has a poor conversion rate, then itâll still leak many potential customers no matter how many visitors you pour into the top.
All of this is to say that for many ecommerce business owners, when they look to grow their business, their first ideas are typically marketing related. It pays to examine your site first, though. Because if youâre able to design and build a well-oiled machine of a site, it will pay itself back many many times over through higher conversions on your brilliant marketing ideas.
What we find, and why this relates to site design, is that so many ecommerce companies say to themselves, âI need to increase revenue! I need to increase visits!â Well, yes, this is true, but itâs not the whole picture.
Conversion rate is actually a pretty good high-level indicator of the performance of your site design. That may be a new way to describe site design for many of you. It might look absolutely stunningly gorgeous, but if your redesign drives half the conversion rate of your previous site, then itâs performing poorly.
As an industry benchmark - and this does vary depending on a number of factors - a conversion rate between 1% and 2% is what weâd call healthy. Really we love to see 1.5% and higher, but for some sites 1% is okay too. If youâre less than 1%, things become very difficult for you. Hereâs why:
Letâs go back to our friend who wants to increase revenue by increasing visits. Obviously, any significant increases will result from successful marketing and/or advertising campaigns, which typically cost money. If your site has a poor conversion rate, then itâll still leak many potential customers no matter how many visitors you pour into the top.
All of this is to say that for many ecommerce business owners, when they look to grow their business, their first ideas are typically marketing related. It pays to examine your site first, though. Because if youâre able to design and build a well-oiled machine of a site, it will pay itself back many many times over through higher conversions on your brilliant marketing ideas.
What we find, and why this relates to site design, is that so many ecommerce companies say to themselves, âI need to increase revenue! I need to increase visits!â Well, yes, this is true, but itâs not the whole picture.
Conversion rate is actually a pretty good high-level indicator of the performance of your site design. That may be a new way to describe site design for many of you. It might look absolutely stunningly gorgeous, but if your redesign drives half the conversion rate of your previous site, then itâs performing poorly.
As an industry benchmark - and this does vary depending on a number of factors - a conversion rate between 1% and 2% is what weâd call healthy. Really we love to see 1.5% and higher, but for some sites 1% is okay too. If youâre less than 1%, things become very difficult for you. Hereâs why:
Letâs go back to our friend who wants to increase revenue by increasing visits. Obviously, any significant increases will result from successful marketing and/or advertising campaigns, which typically cost money. If your site has a poor conversion rate, then itâll still leak many potential customers no matter how many visitors you pour into the top.
All of this is to say that for many ecommerce business owners, when they look to grow their business, their first ideas are typically marketing related. It pays to examine your site first, though. Because if youâre able to design and build a well-oiled machine of a site, it will pay itself back many many times over through higher conversions on your brilliant marketing ideas.
What we find, and why this relates to site design, is that so many ecommerce companies say to themselves, âI need to increase revenue! I need to increase visits!â Well, yes, this is true, but itâs not the whole picture.
Conversion rate is actually a pretty good high-level indicator of the performance of your site design. That may be a new way to describe site design for many of you. It might look absolutely stunningly gorgeous, but if your redesign drives half the conversion rate of your previous site, then itâs performing poorly.
As an industry benchmark - and this does vary depending on a number of factors - a conversion rate between 1% and 2% is what weâd call healthy. Really we love to see 1.5% and higher, but for some sites 1% is okay too. If youâre less than 1%, things become very difficult for you. Hereâs why:
Letâs go back to our friend who wants to increase revenue by increasing visits. Obviously, any significant increases will result from successful marketing and/or advertising campaigns, which typically cost money. If your site has a poor conversion rate, then itâll still leak many potential customers no matter how many visitors you pour into the top.
All of this is to say that for many ecommerce business owners, when they look to grow their business, their first ideas are typically marketing related. It pays to examine your site first, though. Because if youâre able to design and build a well-oiled machine of a site, it will pay itself back many many times over through higher conversions on your brilliant marketing ideas.
What we find, and why this relates to site design, is that so many ecommerce companies say to themselves, âI need to increase revenue! I need to increase visits!â Well, yes, this is true, but itâs not the whole picture.
Conversion rate is actually a pretty good high-level indicator of the performance of your site design. That may be a new way to describe site design for many of you. It might look absolutely stunningly gorgeous, but if your redesign drives half the conversion rate of your previous site, then itâs performing poorly.
As an industry benchmark - and this does vary depending on a number of factors - a conversion rate between 1% and 2% is what weâd call healthy. Really we love to see 1.5% and higher, but for some sites 1% is okay too. If youâre less than 1%, things become very difficult for you. Hereâs why:
Letâs go back to our friend who wants to increase revenue by increasing visits. Obviously, any significant increases will result from successful marketing and/or advertising campaigns, which typically cost money. If your site has a poor conversion rate, then itâll still leak many potential customers no matter how many visitors you pour into the top.
All of this is to say that for many ecommerce business owners, when they look to grow their business, their first ideas are typically marketing related. It pays to examine your site first, though. Because if youâre able to design and build a well-oiled machine of a site, it will pay itself back many many times over through higher conversions on your brilliant marketing ideas.
What we find, and why this relates to site design, is that so many ecommerce companies say to themselves, âI need to increase revenue! I need to increase visits!â Well, yes, this is true, but itâs not the whole picture.
Conversion rate is actually a pretty good high-level indicator of the performance of your site design. That may be a new way to describe site design for many of you. It might look absolutely stunningly gorgeous, but if your redesign drives half the conversion rate of your previous site, then itâs performing poorly.
As an industry benchmark - and this does vary depending on a number of factors - a conversion rate between 1% and 2% is what weâd call healthy. Really we love to see 1.5% and higher, but for some sites 1% is okay too. If youâre less than 1%, things become very difficult for you. Hereâs why:
Letâs go back to our friend who wants to increase revenue by increasing visits. Obviously, any significant increases will result from successful marketing and/or advertising campaigns, which typically cost money. If your site has a poor conversion rate, then itâll still leak many potential customers no matter how many visitors you pour into the top.
All of this is to say that for many ecommerce business owners, when they look to grow their business, their first ideas are typically marketing related. It pays to examine your site first, though. Because if youâre able to design and build a well-oiled machine of a site, it will pay itself back many many times over through higher conversions on your brilliant marketing ideas.
What we find, and why this relates to site design, is that so many ecommerce companies say to themselves, âI need to increase revenue! I need to increase visits!â Well, yes, this is true, but itâs not the whole picture.
Conversion rate is actually a pretty good high-level indicator of the performance of your site design. That may be a new way to describe site design for many of you. It might look absolutely stunningly gorgeous, but if your redesign drives half the conversion rate of your previous site, then itâs performing poorly.
As an industry benchmark - and this does vary depending on a number of factors - a conversion rate between 1% and 2% is what weâd call healthy. Really we love to see 1.5% and higher, but for some sites 1% is okay too. If youâre less than 1%, things become very difficult for you. Hereâs why:
Letâs go back to our friend who wants to increase revenue by increasing visits. Obviously, any significant increases will result from successful marketing and/or advertising campaigns, which typically cost money. If your site has a poor conversion rate, then itâll still leak many potential customers no matter how many visitors you pour into the top.
All of this is to say that for many ecommerce business owners, when they look to grow their business, their first ideas are typically marketing related. It pays to examine your site first, though. Because if youâre able to design and build a well-oiled machine of a site, it will pay itself back many many times over through higher conversions on your brilliant marketing ideas.
What we find, and why this relates to site design, is that so many ecommerce companies say to themselves, âI need to increase revenue! I need to increase visits!â Well, yes, this is true, but itâs not the whole picture.
Conversion rate is actually a pretty good high-level indicator of the performance of your site design. That may be a new way to describe site design for many of you. It might look absolutely stunningly gorgeous, but if your redesign drives half the conversion rate of your previous site, then itâs performing poorly.
As an industry benchmark - and this does vary depending on a number of factors - a conversion rate between 1% and 2% is what weâd call healthy. Really we love to see 1.5% and higher, but for some sites 1% is okay too. If youâre less than 1%, things become very difficult for you. Hereâs why:
Letâs go back to our friend who wants to increase revenue by increasing visits. Obviously, any significant increases will result from successful marketing and/or advertising campaigns, which typically cost money. If your site has a poor conversion rate, then itâll still leak many potential customers no matter how many visitors you pour into the top.
All of this is to say that for many ecommerce business owners, when they look to grow their business, their first ideas are typically marketing related. It pays to examine your site first, though. Because if youâre able to design and build a well-oiled machine of a site, it will pay itself back many many times over through higher conversions on your brilliant marketing ideas.
Prospects want content that relates to their interests. Think beyond your wine, and connect with a broader lifestyle.