What conversion rates do you need to be profitable?
A critical and regularly overlooked aspect of web design are performance requirements. These are also known as KPI’s, or key performance indicators.
This is often one of the most important and challenging questions to answer. You need to consider your whole marketing and sales process when mapping out your KPI’s. Your conversion rates will differ depending on whether or not you are looking for a one-off sale, or the lifetime value of a customer.
KPI’s work when they are set based on clear goals before any campaigns start. It is very difficult to achieve goals without knowing what they are. You need to know what conversion rates are necessary to break-even and profit from your promotional investments.
These financial decisions are fundamental to your website design and your ability to successfully invest in sales and marketing.
For example: Given the cost for an average click, what conversion rate will you need to earn a profit?
If you know what conversion rates you need, you look at web design from an entirely different perspective. It shifts the narrative from simply looking good to getting results.