Comments on: Conversion rate vs Traffic: which should you work on first? http://www.lunametrics.com/blog/2009/02/10/conversion-rate-traffic-work/ Traffic, Analysis, Action Sat, 11 Feb 2012 00:06:52 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Abhi http://www.lunametrics.com/blog/2009/02/10/conversion-rate-traffic-work/comment-page-1/#comment-1503 Abhi Fri, 06 Nov 2009 07:53:44 +0000 http://www.lunametrics.com/blog/?p=865#comment-1503 Thank you Robbin. Thank you Robbin.

]]> By: Robbin http://www.lunametrics.com/blog/2009/02/10/conversion-rate-traffic-work/comment-page-1/#comment-1502 Robbin Fri, 23 Oct 2009 13:47:51 +0000 http://www.lunametrics.com/blog/?p=865#comment-1502 Hi Abhi, try this calculator for Google Website Optimizer, http://adwords.google.com/support/aw/bin/answer.py?answer=61688 Robbin Hi Abhi, try this calculator for Google Website Optimizer, http://adwords.google.com/support/aw/bin/answer.py?answer=61688

Robbin

]]> By: Abhi http://www.lunametrics.com/blog/2009/02/10/conversion-rate-traffic-work/comment-page-1/#comment-1501 Abhi Fri, 23 Oct 2009 08:24:58 +0000 http://www.lunametrics.com/blog/?p=865#comment-1501 Anybody can help me how much percentage traffic should we consider in the A/B test for A version and B version and how long (time) we need to test initally. Is there any statistical significant test? Anybody can help me how much percentage traffic should we consider in the A/B test for A version and B version
and how long (time) we need to test initally. Is there any statistical significant test?

]]> By: Robbin http://www.lunametrics.com/blog/2009/02/10/conversion-rate-traffic-work/comment-page-1/#comment-1500 Robbin Wed, 25 Feb 2009 20:13:09 +0000 http://www.lunametrics.com/blog/?p=865#comment-1500 Jesse, we can talk about p and q any day you like. Here is an article I wrote about this topic a long time ago: http://www.lunametrics.com/blog/2007/09/16/testing-how-does-the-website-optimizer-calculator-work/ It is nice to know that people such as yourself read our blog. Jesse, we can talk about p and q any day you like. Here is an article I wrote about this topic a long time ago:
http://www.lunametrics.com/blog/2007/09/16/testing-how-does-the-website-optimizer-calculator-work/

It is nice to know that people such as yourself read our blog.

]]> By: Anil Batra http://www.lunametrics.com/blog/2009/02/10/conversion-rate-traffic-work/comment-page-1/#comment-1499 Anil Batra Wed, 25 Feb 2009 19:54:42 +0000 http://www.lunametrics.com/blog/?p=865#comment-1499 I don't think it is the answer to this question is so black and white. I agree with Avinash, Jeremy and Ben. Where you focus first on depends on where you suck the most. if you conversions suck the most and you are getting decent traffic then conversion becomes your priority. However, if you have low traffic which means you are just starting out (the site/businesses new) and than getting traffic is your priority. However running simple A/B test is not that cost prohibitive or time intensive so you can do testing as well as driving traffic at the same time. I don’t think it is the answer to this question is so black and white. I agree with Avinash, Jeremy and Ben.
Where you focus first on depends on where you suck the most. if you conversions suck the most and you are getting decent traffic then conversion becomes your priority. However, if you have low traffic which means you are just starting out (the site/businesses new) and than getting traffic is your priority. However running simple A/B test is not that cost prohibitive or time intensive so you can do testing as well as driving traffic at the same time.

]]> By: Jesse Farmer http://www.lunametrics.com/blog/2009/02/10/conversion-rate-traffic-work/comment-page-1/#comment-1498 Jesse Farmer Wed, 25 Feb 2009 19:48:42 +0000 http://www.lunametrics.com/blog/?p=865#comment-1498 Also, the question isn't so much "should traffic come first?" but rather "where should my traffic come from?" The only acquisition strategy compatible with your advice, IMO, is SEO. If your traffic is paid, a low conversion rate is just throwing money down the drain. If your traffic is viral, you need to be optimizing your viral loop, which puts you back at square one. With SEO, sure, you can work on getting placed higher for some set of keywords and get organic traffic that way. From there you can iterate more quickly. Also, the question isn’t so much “should traffic come first?” but rather “where should my traffic come from?”

The only acquisition strategy compatible with your advice, IMO, is SEO. If your traffic is paid, a low conversion rate is just throwing money down the drain. If your traffic is viral, you need to be optimizing your viral loop, which puts you back at square one.

With SEO, sure, you can work on getting placed higher for some set of keywords and get organic traffic that way. From there you can iterate more quickly.

]]> By: Jesse Farmer http://www.lunametrics.com/blog/2009/02/10/conversion-rate-traffic-work/comment-page-1/#comment-1497 Jesse Farmer Wed, 25 Feb 2009 19:36:02 +0000 http://www.lunametrics.com/blog/?p=865#comment-1497 "Statistical significance of testing is based on having enough data in both a numerator and a denominator: The number on top of the ratio (conversions) and the one on the bottom (views of the test page.) So you might have a fairly large site with a miniscule conversion rate, and still not have enough traffic to get a significant test quickly." This is not true. The conversation rate which has the highest standard error is 50%. The closer the conversion rate is to 100% or 0% the smaller your sample size needs to be to achieve a given confidence level. Why? Well, there's an argument from symmetry. If converting at 100% let you get results more quickly than converting at 0%, measure the "non-conversion rate" instead. A 1% conversion rate is a 99% non-conversion rate. But of course, one is statistically significant if and only if the other is. “Statistical significance of testing is based on having enough data in both a numerator and a denominator: The number on top of the ratio (conversions) and the one on the bottom (views of the test page.) So you might have a fairly large site with a miniscule conversion rate, and still not have enough traffic to get a significant test quickly.”

This is not true. The conversation rate which has the highest standard error is 50%. The closer the conversion rate is to 100% or 0% the smaller your sample size needs to be to achieve a given confidence level.

Why? Well, there’s an argument from symmetry. If converting at 100% let you get results more quickly than converting at 0%, measure the “non-conversion rate” instead. A 1% conversion rate is a 99% non-conversion rate. But of course, one is statistically significant if and only if the other is.

]]> By: Ben http://www.lunametrics.com/blog/2009/02/10/conversion-rate-traffic-work/comment-page-1/#comment-1496 Ben Sat, 14 Feb 2009 11:18:12 +0000 http://www.lunametrics.com/blog/?p=865#comment-1496 At times, I'm baffled by the willingness of SMB's to dump more money into advertising without first taking a critical look at their website's ability to convert. At the same time, rarely is there enough data to be statistically significant (I guess I'm just living in a small world). For this reason, I tend to act along the lines of what Avinash has suggested - use the suckometer to fix the obvious problems and then get more traffic. Ben At times, I’m baffled by the willingness of SMB’s to dump more money into advertising without first taking a critical look at their website’s ability to convert. At the same time, rarely is there enough data to be statistically significant (I guess I’m just living in a small world). For this reason, I tend to act along the lines of what Avinash has suggested – use the suckometer to fix the obvious problems and then get more traffic.

Ben

]]> By: Robbin http://www.lunametrics.com/blog/2009/02/10/conversion-rate-traffic-work/comment-page-1/#comment-1495 Robbin Thu, 12 Feb 2009 19:52:40 +0000 http://www.lunametrics.com/blog/?p=865#comment-1495 Oh, now I understand what Jeremy meant about the link. I kept wondering, what link? Oh, now I understand what Jeremy meant about the link. I kept wondering, what link?

]]> By: Jeremy Hutton http://www.lunametrics.com/blog/2009/02/10/conversion-rate-traffic-work/comment-page-1/#comment-1494 Jeremy Hutton Thu, 12 Feb 2009 19:25:28 +0000 http://www.lunametrics.com/blog/?p=865#comment-1494 AK, thanks for sending the link. I think in this case you need to step back and look at the big picture. (And I think that's what Avinash means by "suckometer" - there's got to be some bigger insight that drives what strategy a business is going to use. Just basing a decision on two dynamic variables - conversion or traffic - isn't enough.) If there's not enough traffic because the there are fundamental IA issues with the page in question (high "puke" rate, etc.) then get those in order so that you'll have a statistcally significant sample group to run a viable test otherwise - like you said - the test is worthless. But if the conversion rate isn't statistically significant becuase you can't get enough visitors to the site (no pipeline) then figure out how much this information is worth and get spending on paid search (or other ways of getting visitors) so you can get that pipeline big enough to provide value. Effeciency and profitabilty are the real keys here. Having said both of those options though, I'm curious to know what any businesses (or analysts) threshhold is for decision making because in my experience, this threshold will be different for different businesses in different industries because they all have different needs. IMHO, businesses need to be less concerned with "having their cake and eating it too" and instead focus on knowing "how to slice the biggest piece with best knife". (Didn't realize I had so much to say about this...:) AK, thanks for sending the link.

I think in this case you need to step back and look at the big picture. (And I think that’s what Avinash means by “suckometer” – there’s got to be some bigger insight that drives what strategy a business is going to use. Just basing a decision on two dynamic variables – conversion or traffic – isn’t enough.)

If there’s not enough traffic because the there are fundamental IA issues with the page in question (high “puke” rate, etc.) then get those in order so that you’ll have a statistcally significant sample group to run a viable test otherwise – like you said – the test is worthless.

But if the conversion rate isn’t statistically significant becuase you can’t get enough visitors to the site (no pipeline) then figure out how much this information is worth and get spending on paid search (or other ways of getting visitors) so you can get that pipeline big enough to provide value.

Effeciency and profitabilty are the real keys here.

Having said both of those options though, I’m curious to know what any businesses (or analysts) threshhold is for decision making because in my experience, this threshold will be different for different businesses in different industries because they all have different needs.

IMHO, businesses need to be less concerned with “having their cake and eating it too” and instead focus on knowing “how to slice the biggest piece with best knife”.

(Didn’t realize I had so much to say about this…:)

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