So you've worked up your grand product launch, built your landing pages using the best design software, and sent out word for the big day. After your startup has kicked off and your analytics programs start getting the numbers from your site’s landing page, how do you actually know that your landing page creation is a success?
To determine whether your landing page is hitting all the targets, check it against these three key metrics…
#1 Conversion Rate
Your landing page's conversion rate is one of your site's best touchstones for success. Conversion rate is the percentage of total visitors that convert to leads, sales, or other desired outcomes. Low sales numbers are in many ways a symptom of lagging conversion rate performance.
Here’s a simple equation to calculate your purchase conversion rate: Identify the number of unique visitors within a specific time period, and then divide the figure by the amount of sales transactions within the same time frame. High single digit percentage (1-9%) is considered good for a retail site. But for lead generation sites to be considered a success, conversion rates should be in high teens (13-19%). In your site’s case, what do the numbers say about your landing page’s conversion rate?
#2 Page Abandonment Rate
Check your landing page's abandonment and bounce rate for an important indication of landing page performance. A bounce occurs when a visitor leaves the page immediately after landing on it. High bounce rates are a red flag for irrelevant keywords and/or traffic sources. Statistics show that 10 percent of visitors leave a site after one click. 55% or over half of visitors leave a site after two clicks, and a whopping 88% percent drop off after the third click. If visitors do stay on the page, how long does it take for them to abandon your landing page?
Last but not the least is to know your site's cost-per-sale. “What is a customer worth to me by single transaction as well as their lifetime value?" Answer this question and you can start working the numbers. Divide your advertising costs by the number of sales to come up with your average cost per sale.
Consider whether a customer's lifetime value (the number of sales and anticipated revenue over time) is worth the loss at front needed to keep him or her. When you have successfully identified the upfront cost per sale, you can then work out the strategies needed to realize big returns over time.
If your landing page is underperforming in any of these 3 key metrics, take it as a wakeup call. Improving your landing page's performance with the right design tools is both practical and essential for your eCommerce site’s success.