What is the Golden Formula?
When it is all said & done, the formula to a successful digital marketing strategy is quite simple:
Traffic x Conversion Rate = Leads
Traffic: Total number of visitors that come to your website on an ongoing basis
Conversion Rate: The percentage of visitors who take action on your website and reach out to via a conversion point on your website.
Leads: This one’s pretty self explanatory but a lead would be considered as anyone that reaches out for your services via your website.
How Can It Be Applied?
Let’s use a law firm as an example. If over the span of a month, Bob Loblaw’s Law Firm currently has 1,000 visitors to his site and has a website has a conversion rate of 5% than he would have brought in 50 new leads throughout that month.
1,000 Visitors / Month x 5% Conversion Rate = 50 New Leads
Naturally, boosting ONE of the variables is ideal; but when you are able increase BOTH at the same time, this is where you can create the largest ROI possible from your digital marketing campaigns. Having the perfect website with no traffic has nearly the same amount of value as having a unprofessional website with tons of traffic.
Nearly all of our efforts revolve around increasing either the amount of traffic your receive or the conversion rate of your website and in some cases, both at the same time!
Where WebMarketers differs from the average digital marketing company is in our numbers-focused approach. Our analysis doesn’t stop at leads. Once we have determined your average number of new leads each month, the next step is to determine HOW this relates back to your bottom line.
New Monthly Leads: 50
Close Rate: 50%
New Monthly Clients: 25
Average Lifetime Value of a client: $1,000
Profit Margin: 40%
Therefore, the net profit on a new client is $400.
How Does This Effect My Bottom Line?
Circling back to determine your ROI, lets assume that your monthly marketing budget is $1,500 for Google Ads, Facebook Ads & SEO. If that budget brought in 50 new leads – and of that, 25 become new clientele – your cost to acquire a new patient is $60.
ROI = (Net Profit / Marketing Budget) x 100
ROI = 1,000%
At the end of the day, regardless of what your digital marketing strategy entails, it will always circle back to this one formula and was a team WebMarketers are always striving to get you the most value out of your website and online presence.