Which one is more important, conversion or traffic?

From a sales perspective, conversion is more important than traffic.

More and more conversions mean more and more transactions, but more and more traffic does not necessarily lead to an increase in transactions.

The picture below looks familiar, right?

This is why conversions are more important than traffic if you want to increase revenue.

More traffic does not always equal more transactions. If you bring in a lot of traffic, but it’s the wrong traffic, visitors will bounce and no sales will come from them. Here are some reasons why an increase in traffic can lead to a decrease in sales:

• The content of the webpage does not match the intent of the traffic brought by the search term.
• The subject of your website content is not directly related to the products or services you sell.
• The website content is directly related to what you are selling, but it belongs to the top of the funnel (TOFU) content in the initial research stage, not the final purchase stage.
• Website content presents a poor image of your company and does not convince potential customers to buy from you.
• The website content is confusing or difficult to understand.
• Your lead generation form is broken or not converting.

The condition for an increase in traffic to lead to an increase in conversions is that the traffic must include high-quality audiences (that is, user groups with strong purchasing intent), and these high-quality users are directed to high-conversion pages. For example, on the Profitworks website, one of the pages with the most traffic links to a free accounting software. We offer this for free because many of our customers are small businesses. But since this page wasn’t what we were selling ( SEO services), we never got any leads from it. It brought a lot of traffic to the site, but no conversions or transactions.

On the other hand, if we focus on improving the conversion rate on our homepage, we could potentially increase that from 10 leads per month or 1% conversion rate to 20 leads per month or 2% conversion rate, and I guarantee you’ll see an increase in sales.

In a simple A/B test, we have increased web page conversions by up to 600%, and typically there is an increase of more than 50%. Creating and running this test usually takes several weeks. On the other hand, getting the same increase in web traffic would typically take months, and the amount of work we put in to get these results would typically be three to four times the amount of work we put in for this A/B web test.

Here's a good example: suppose your website has 10,000 visitors per month, and this traffic brings in 100 transactions. For the sake of discussion, let's assume that each customer brings in $1,000 in transactions, so your website currently generates $10,000 in transactions.

Now if you want to double your sales, here is the probability and difficulty of achieving your goal by increasing conversions and increasing traffic:

Another important factor to look at here is that often when your traffic increases, your conversion rate will not remain stable and will actually decrease. Therefore, in this case, the chances of successfully increasing sales by $10,000 a month by doubling traffic instead of doubling conversions are low.

Usually when traffic increases significantly, conversions drop by 10-20%. Even if it only drops by 10%, the new traffic can only bring an increase in transaction volume of US$8,000 per month. To achieve your target sales increase, you need to bring in an additional 1,222 traffic sessions.

Realize that increasing conversions, rather than increasing traffic, will bring better returns.

Based on the reasons mentioned above, if traffic increases but the conversion rate is low, it will do little to increase your transaction volume. On the contrary, if you optimize the conversion rate first and then increase the traffic, it will bring very optimistic transaction volume. Please see the following figure:

Based on experience, the monthly transaction growth target is easily achievable within the first six months when we work to increase conversions or traffic.

An investment in a website can have a huge return. No matter what strategy you explore, investing in a website is definitely the best marketing decision that can bring you a great ROI. From our data, we can see that conversion rate growth programs can bring an average ROI of 275%, or an additional $2.75 in revenue for every dollar spent.

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