What is Landing Page or Website Optimization? The Basics. And why it’s important, nay, CRITICAL!

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Website optimization (or Landing Page Optimization) is the process of testing different variations of your web page to find the best converting website. In figure 1, you see an example site as the starting test page, then with many different types of tests, conversions are tracked, statistics are analyzed, and a winning page is selected.

What is Landing Page or Website Optimization? The Basics. And why its important, nay, CRITICAL!
fig 1. Process of Landing Page Optimization

Although there are many types of testing, the two basic testing processes are A/B Testing (or split testing) and multivariate testing.

See our post on the difference between A/B testing and multivariate testing.

The whole goal of landing page optimization, is increasing the action or value of actions from your site’s visitors.

What is Landing Page or Website Optimization? The Basics. And why its important, nay, CRITICAL!

fig 2. Before Landing Page Optimization

In fig. 2 you have your current site producing a number of sales or leads per site visitor, your conversion rate. Whether you are trying to get your visitors to purchase a product or fill out a lead form, your goal is to get as many qualified visitors to complete an action as possible.

What is Landing Page or Website Optimization? The Basics. And why its important, nay, CRITICAL!

fig 3. Increased Sales After Optimization

Of course it stands, in fig. 3, that if you can increase the number of visitors that complete that action, without having increase that actual number of visitors coming to your site, then you have increased the value of each visitor. That increases your profits. BAM! Now we’re talking. Now you’ve got more people taking action on your page, making you more profits! Ah, the sweet life…

Here’s an example without your pages being optimized:

For example, you spend $1,000 per day through PPC (pay per click advertising) for 4,000 visitors and sell 100 widgets at a advertising CPS (cost per sale) of $10/widget. You make a profit of $3 per widget so your daily profit is $300. 30% ROI on your marketing dollar.

  • Cost Per Click: $0.25
  • Total Visitors: 120,000 visitors a month
  • # of Widgets Sold : 3,000 widgets a month
  • Profit: $9,000 a month

Now, with landing page optimization, let’s say you increase your sites performance by 20%:

Assume you start testing and making changes to your pages, and produce a result of 20% increase in conversions. (That is a modest increase, 21% is the lowest increase we’ve achieved after 4 months with new clients.)

Before, you made 100 sales per day at a cost of $10 per sale and a profit of $3 per sale, but after:

  • Additional “Optimized Sales”: 20 widgets a day (20% times 100)
  • Total Visitors: Still same 120,000 visitors a month
  • # of “Optimized” Widgets Sold : 600 widgets a month
  • Additional Profit: $7,800 a month (600 times $13, you aren’t paying for extra traffic)
  • Increase in Profits: 86% increase

Ok, just in case you missed that, a 20% Increase in conversion yields 86% Increase in Profits! That’s $93,600 per Year Increase for this example.

Holy Shenanigans Batman, that is incredible! Seriously, why are you still reading this, when you can be making your site more money by doing testing?!?!??

I understand it’s difficult to get started, and unfortunately, sometimes it ain’t as easy as it seems. That’s why Conversion Voodoo offers landing page optimization services. We get the ROI faster, and we help stop the lost revenue that is bleeding from your website right now. Whether you use a company like Conversion Voodoo, or do it yourself, bottom line get started today!

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