Conversions – Measuring Success!
The most important KPI (Key Performance Indicator) is likely the conversion rate because it allows us to measure the success of our efforts.
But what are conversions? Conversions are predefined goals set by us. The most well-known conversion on our website is a room booking through the booking engine. However, we can also define other goals as conversions, such as a table reservation, newsletter sign-up, or watching a video on our website.
To obtain more meaningful numbers, it’s important to not only look at the number of conversions but also the conversion rate. This rate compares the number of achieved goals to the number of users who visited our website.
Conversion Rate = (100 / Number of Users) * Number of Conversions
When measuring the conversion rate, it’s important to do so on the website level rather than the booking engine level. This way, we obtain the actual numbers at the website level, and we have more optimization possibilities on the website compared to the booking engine, which is often licensed from a third-party provider.
Optimize Conversion Rate and afterwards generate Traffic
For successful website development, we always recommend first increasing the conversion rate through optimizations on the website before taking measures to generate more traffic (number of users accessing our website). It doesn’t help us to have more users on the website if they struggle to complete the purchasing process.
ATOK – Analyze / Test / Optimize / Control
To optimize the conversion rate, there are various possibilities that differ from website to website. However, the approach is crucial for optimization. In the first step, analyze your existing website and try to identify areas with potential. Then, test an optimization, such as changing the color of the “Book Now” button. If it turns out that more users have booked a room since the test, we optimize the page and adjust the color based on our test. To ensure the optimization works in the long term, we recommend conducting a follow-up check after 2-3 months.
“Step by Step” for Understandable Measures!
To accurately determine the impact of a measure on the optimization of our website, it’s important to make only one optimization at a time. If we make 5 adjustments simultaneously, we cannot definitively say which of the 5 measures had which impact. Even if the conversion rate generally increases, it could be that only 3 adjustments contributed positively while the other two had a negative effect.