While it is very nice to have a website available for all to see, it is really just a flashy brochure if it doesn’t take advantage of the internet’s ability to help people to interact, whether it is on a social level or a business level. In order to check on a business’ effectiveness in relation to its website, it is necessary to look at its conversion rate. This is the rate at which visitors to the website buy that company’s products as a result of its visit.
This is a very important benchmark when it comes to e-commerce websites. If a company has an e-commerce website and it finds out that not very many visitors to the website actually purchase anything, it will allow that company to analyze what needs to be done to increase it’s site’s or product’s effectiveness.
When doing this analysis, it is probably a smart move to see where the traffic to the website is coming from. Perhaps the traffic is coming from a reciprocal link which is at a site with no relation to the company or its products, in which case, that link probably needs to be removed, or perhaps the company can take advantage and target products towards the unique visitors who visit the original link site.
This type of analysis can be beneficial in improving sales, and can be coupled with marketing research to try to find out exactly what types of people visit the site, and what they are looking for, all without the need to pay for expensive marketing consultants. This keeps costs down for all companies, and provides ready to use data at their virtual fingertips. With this data, any company can then plan to target specific groups of people using their website, or even, multiple websites, to better control who they sell to and how much they sell.
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