I’m asked lots of questions about websites as well as other Digital platforms, one of which has been ‘How many visitors do I need to my website?’. The answer although relatively simple isn’t a straight forward number. It varies from business to business, from industry to industry. I will try to outline how you can calculate for yourself how many visitors to aim for.
Firstly we will qualify that you are best with quality visitors and increasing your conversion rates should always be factored into your marketing. Conversion rate is the percentage of visitors that turn into buyers. So if you get 100 visitors to your site this week and 10 of them buy stuff your conversion rate is 10%. If only 1 of them buys from you your conversion rate is 1%. Quality visitors lead to higher conversion rates, you want people visiting your website that are most likely to buy from you rather than just numbers!
Ok so let’s get cracking…I am keeping this as simple as possible (there are other ways).
1. You need to have a figure in mind that you want to generate in money. How much money do you want your website to generate for you in sales over the next 30 days (or any time period you choose)?
2. You need to know your average value of a sale. Take the total value of sales and divide by the number of sales to get an average value of a single sale. Stick to the same time frame you chose in point 1.
3. Divide figure 1 by figure 2. So you divide the total amount you want to make by the average value of a sale. This gives you the total number of sales you need to make.
4. Calculate your conversion rate. This is the total number of sales divided by the number of visitors multiplied by 100.
5. Now we calculate how many visitors we need to generate 1 sale. Number of visitors divided by number of sales.
6. Now multiply the number of visitors required for 1 sale by the total number of sales you need to make your target (3)
I want to generate £2,000 per month in sales (1). I made 4 sales last month totaling £100 giving me an average value of a sale of £25 (2). So I need 80 sales to get my £2,000 (3). We had 250 visitors last month so our conversion rate is 1.6% (4/250 x 100) (4). 250 visitors divided by 4 sales equals 62.5 visitors to achieve one sale (5). 80 multiplied by 62.5 equals 5,062.5 (6). So we need 5,063 visitors per month to achieve £2000 worth of sales if our conversion rate remains at 1.6% (5063 x 1.6% x 25 = 2025.20).
Of course increasing the conversion rate will mean that less visitors are required to achieve our sales target. But that’s a whole other blog!
I hope your head doesn’t ache as much as mine (I’m not a maths person) and that you found this a useful tool. If you want to understand more about finding and using the numbers for your website then you need to look at our Google Analytics workshop! Big thanks to my maths genius daughter for her help with the formula for this!