This post is designed as a follow-up to my post, Calculate Micro-Conversions; Tie Them to Dollars about how to tie micro-conversion wins to actual revenue. While knowing how to calculate mirco-conversions is fine and dandy, I realize that before you can begin to measure them, it is essential to know what a micro-conversion IS.
To explain what a micro-conversion is, let’s first cover what a mirco-conversion isn’t: a macro-conversion. As readers of our blog, most of you probably know that macro-conversion is the overall conversion rate of your site (i.e. the percentage of visitors to your site who take the main action you want them to take, such as buying a product or filling out your lead form). You calculate the macro-conversion rate by dividing the number of visitors who took the desired action on your site by the total number of qualified visitors to your site. Your macro-conversion rate is an indicator of the overall effectiveness of your site.
Although sites usually have one overarching objective, there are smaller steps prospects take throughout the site on their way to a macro-conversion goal. Ideally, these smaller steps nurture prospects, persuade them to keep moving, and build momentum toward that final macro-conversion step. This is one of the main tenants of the Persuasion Architecture methodology we practice with our OnTarget subscription clients. Each of these steps in the process is what we call a micro-conversion. The best way to illustrate this is with an actual example of optimizing a micro-conversion for one of our clients.
Our client originally featured a call to action on their homepage for gifts starting at XX dollars. However, there was no clear way for prospects to move forward: the entire section of the homepage featuring this content was click-able, but this was not an intuitive action for prospects to take. Clicking on a call to action that navigates prospects further into the site is a great example of a micro-conversion, but it was clear that the version on our client’s site could use some optimization. Naturally, we ran a test using Google Website Optimizer (GWO) to try to improve it.
The variation we tested featured a click-able button within the section of the homepage containing the call to action copy. The micro-conversion goal for this test was defined as successful navigation to the following page. The variation yielded a 19.8% increase in the number of prospects that navigate to the following page, with an 87.7% confidence level. Click the image below to enlarge the screenshot of our results.
So what is the big deal about increasing the number of prospects that go from the homepage to another page of the site? Avinash Kaushik, one of the pioneers behind the idea that micro-conversions have value, said in his blog post, Excellent Analytics Tip #13: Measure Macro AND Micro-Conversions:
“…I have come to realize that we are not being the best we can be by focusing on just the overall website conversion rate. We are leaving money on the table. We are not getting enough credit. We are not getting a good enough understanding of the complete picture. We are being shortsighted.”
We couldn’t agree more with Kaushik’s statement. Running a test to increase the rate of prospects that navigate from one page to another may not have obvious implications for your site’s success, but it does play a factor in improving your site’s performance and increasing your bottom line. It just takes a little more digging to uncover the value of the change. By using the calculation from my recent post, we determined an estimated increase in yearly revenue of $21,685.86 for the micro-conversion improvement we highlighted above. Do you still think that mirco-conversions don’t matter or are you ready to get moving on a plan to improve the performance of your site one micro-conversion at a time? Contact us to find out how we’ve helped people like you do it.