Conversion Tracking... do those numbers give the whole picture?
DECEMBER 2004
For those
of you not familiar with Conversion Tracking, it is the ability
to track which site visitors have completed an online form at
your site or made a purchase. Typically, these conversion tracking
codes are part of a Sponsored Ad Placement program such as Google's
AdWords, Yahoo Search Marketing, or some other Sponsored Ad
Placement program that charges by the click (you pay whenever
someone clicks on your ad to visit your Web site).
If your
site is an online eCommerce site, these numbers are exciting
and should directly correlate to an increase in your overall
sales. However, if you do not have an eCommerce site,
these numbers can be deceiving.
Let's
look at an example so that I can demonstrate why these numbers
may not be giving you the complete picture. Let's say that I
am searching for a factory automation system. This is clearly
an item that must be custom engineered to my facility and application,
so would I complete an online form if I'm anxious to get a quote?
I don't think so. I'm not going to wait for someone to open
their Email and get around to responding to my inquiry - I'm
going to pick up the phone so I can talk with someone about
my specific requirements.
At that
time I may only be gathering quotes to present to my management
team, but I'll have the quote in a timely fashion and be able
to ask questions only if I phone the potential vendor.
So, who
would complete that online form? Clearly someone who is
"window shopping." They think they may have a requirement
somewhere down the line and want to get more information to
put into their resource file. Does this mean that they will
not buy? Of course not, they just are not ready to buy right
now.
Let's
go one step further. Let's suppose that prospect 'A' completes
an online form to receive a catalog of your items or brochures
about your systems. He ferrets it away until he needs to specify
a system for his plant. So, perhaps six months later, he calls
and talks to someone about designing a system for his firm.
This is the result of ONE conversion - ONE person who completed
the form SIX MONTHS AGO, but is that the end of it? Nope. What
will happen if nine months later the same company decides to
expand their facility and needs to expand or add another factory
automation system? I'd say the chances are very good that you'll
get another sale out of this one inquiry (unless the customer
is dissatisfied with your system).
Many
sites are not eCommerce sites because they sell products
or services that require custom engineering or a one-on-one
consultation. Not everything can be sold over the Internet in
an automated fashion. For those sites that cannot sell their
goods online, conversion tracking can give useful information
about what people are looking for and which ads are producing
the most sales potential. Some site owners get a rude wake-up
call when they notice that their prized widget is not in demand,
but can take advantage of other goods that are more popular
and formulate a marketing strategy around those goods. Some
products simply "mature" and are no longer in high
demand - carbon paper, for example.
My point
is this: if you have a Sponsored Ad Placement Program and
you feel that the number of conversions are very low, consider
whether or not there has been an increase in phone calls. In
fact, you can buy a special toll-free number that is displayed
only on your Web site. This would give you a barometer to tell
you how many people are contacting your company as a direct
result of your Web site (be sure not to use that number anywhere
else in your off-line ad programs). If your off-line ads are
all sending the ad viewers to your Web site, consider a second
Web site just for your Sponsored Ad Placement Program so that
you can measure the effectiveness of the program, with this
second site sporting that special toll-free number.
When
evaluating effectiveness of Internet ad campaigns, be careful
not to throw out the baby with the bath water. Be sure to have
a clear ROI in sight based on more than just those visitors
who completed your online form - don't forget those that took
the time to place that important phone call.
