Small Business Insights in an Online World

It should be becoming clear that to achieve its goals, your web site needs to do only
two things:
1. It needs to get the right number of the right kind of people to visit it.
2. It then needs to get as many of those people as possible to take action.
If a web site does not address the right needs in the right markets, it will not get the
visitors it needs to succeed. If it fails to appeal to its visitors, and to lead them powerfully
along the path to get what they want, the traffic will not be converted into business

Success = Traffic × Conversion
If your web site sells marbles, the number of marbles you sell is exactly the number of
visitors that visit your site multiplied by the site’s conversion rate. Clearly, if you have
no visitors to your site, you can’t sell any marbles.
If you have a bricks-and-mortar peanut store, it doesn’t matter how great your product
is, how pleasant your service, and attractive your prices, if your store is hidden in
a back street where nobody knows about it.

Zero Traffic × Any Conversion Rate = Zero Success

Likewise, if your conversion rate stinks, any traffic you get will only generate poor
results. This would be like establishing your peanut store in a great location on a busy
street, putting up great signs and never opening the doors, then wondering why you
didn’t sell any peanuts.
Any Traffic × Zero Conversion Rate = Zero Success
This means that both traffic and conversion rate are critical for success. It is unwise
to neglect either your traffic or your conversion rate. You can prove this pretty easily.
A number that’s the result of multiplying two other numbers can be represented by
a rectangle. The optimal result (greatest area) is achieved when the factors are more
balanced, as shown in Figure 1-1. So you need to invest effort both in methods that
increase your targeted traffic and methods that optimize your conversion rate.


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