Recent research has revealed that UK businesses waste £2 billion* a year by not investing in the proven benefits of conversion optimization (*A figure that will rise exponentially)
Businesses are still prioritising website aesthetics over relevancy, a strategy which is costing them £2billion a year. Nearly 65% of marketers admitted that to increase sales revenue they would alter the creative design of their websites, with only 37% choosing conversion optimization. Although conversion rates average at 2% in the UK, only 13% of online budgets are spent on improving this figure, but nearly 40% of budget is spent instead on driving even more traffic.
Massive changes in the industry mean that today’s marketers need to think and act as technologists, behaviourists and scientists which mean that ‘old school marketers’ are becoming business liabilities. Over 65% admitted that sales generation was the way they measured a campaign’s success, with only 34% measuring campaign conversion rates.
What is success? Although nearly 40% measured success by the number of visitors who arrive on the website, 32% were happy to abandon them on the home page instead of driving them to the most relevant webpage. Only 30% of those surveyed considered the number of visitors who converted to customers as significant, and only 9% addressed bounce rates, yet bounce rate it the first measure of online marketing effectiveness.
Ivan Imhoff MD at House of Kaizen, the agency who commissioned the survey, says;
‘Marketers seem comfortable dealing with the beginning and the end of a user journey but are out of their zone regarding the middle bit. The average bounce rate is 50%, which is in effect wasting 50% of your marketing budget. This should be unacceptable. Over a quarter of marketers are unaware of what a bounce rate is. Quite simply; you drive traffic to a website; the visitor arrives to the website from a marketing ad and immediately leaves the site, generally never to return. This is also what we term as the “Media Wastage Index”. Businesses should donate this money to worthier causes”.
Our clients are those that realise how site optimization generates incremental revenue. He added, ‘The top 10 sites in the UK are recording conversion rates of 14%, offering a 48% ROI, I do not understand why businesses accept less than this. Conversion rate is something a business should be constantly optimizing’.
Calculating the benefits…
House of Kaizen has developed a range of easy to use on-line tools that aim to educate businesses on the benefits of conversion optimization. These calculators will quickly rate a website’s landing page effectiveness and its propensity to ‘bounce’ visitors away. Other calculators include media ROI potential and the length split test, which should run before acquiring statistical accuracy. To find out more, visit; www.houseofkaizen.com/resources/calculators
Contact: Michelle Baker on:07989 551046 or email:firstname.lastname@example.org
Notes to Editors:
i. Survey was undertaken by Clarity UK on March 8th 2011. A total of 207 managing directors, marketing directors and managers with budget responsibility in UK companies that trade online with a turnover in excess of £250,000 were questioned. Full results available on request.
ii. Ivan Imhoff will act as an expert industry spokesman and will happily undertake interviews to discuss and debate the views expressed in this release. (Professional profile available on request).
iii. House of Kaizen clients average the following results following website optimization:
• 82% increase in conversion rates
• 23% increase in website revenue
• 28% decrease in clicks to booking ratio
• 61% increase in ROI
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