Click Through & Conversion - the Importance of the Digital Pipeline

Posted by Matt on 21st July 2016

Click Through & Conversion - the Importance of the Digital Pipeline

The Digital Marketing world can be a confusing place. Maybe you've heard a Marketing Executive talk about conversion rates and switched off; boring, right? Well, these are key concepts, and are crtitical to succes in the digital sphere. Particularly the world of Pay Per Click (PPC) Advertising. 

The Pipeline 

A neat way of thinking about the whole process of digital marketing is to imagine a pipeline. In fact, if you've worked in Sales, you may already be familiar with this concept. 

In digital, essentialy, you pour traffic down your 'pipe'  toward your website and you hope as much as possible makes it to the end, in the form of sales! The problems is, periodically, holes drain the flow.

Every stage a user must pass through, you will lose large percentages of traffic - this is a given. So, it is vital that you minimize the amount of leaks, and optimize the rate at which people drop.

Let's imagine you are a home insurance company, and your digital ad campaign receives 100,000 viewers. With an un-optimised pipeline, you get the following results:

Un-Optimised Pipeline

100,000 campaign viewers.

You have un-optimised and general advertising text. So: 

2% - This many click through to your site (CTR).

100,000 X 0.02 = 2,000

2,000 - You now have this many users looking at your site. 

You have many links, images and lots of writing on your pages. The actual sign up is buried one page deeper. So:

4% - This many convert to the next page of your sign up. 

2,000 x 0.04 = 80

80 -  You have this many on your final page.

This page has similar design sensibilities as above. So:

6%- This many convert to final sales (Conversion Rate). 

80 x 0.06 = 5

5 From 100,000 viewers, you end up with 5 Sales. 

Un-Optimised/Excessive Stages Costs a Huge Amount of Traffic  

Look how quickly that initial number dwindled! Each stage we lost a large percentage of traffic, and the unnecessary stage at the end divided up remaining traffic by an order of magnitude.  From having 100,000 initial viewers we ended up with a paltry 5 sales.

By increasing those click through percentages, and removing stages, can we make that final number larger? 

What's Good for Your User is Good For You 

How would we achieve this? Essentialy, what's good for your users is good for you. People want quick/easy access to what they came for. Each page should be minimal and clear, with the entire page revolving around a single action.

The action your visitor came to make. 

Let's take a look again with an optimised campaign:

Optimised Pipeline

100,000 campaign viewers.

You have experimented with and improved your text ads. So: 

15% - This many click through to your site (CTR).

100,000 X 0.15 = 15,000

15,000 - you now have this many users looking at your site. You have one minimal and clean page, with an obvious and isolated action. So:

45% - This many convert to final sales (Conversion Rate).

15,000 x 0.45 = 6,750 

6,750 From 100,000 viewers, you end up with 6,750 Sales. 

Improvements Make a Big Difference

Wow, what a difference! Just by removing a stage, and improving two numbers by realistic amounts - click through and conversion rates, we made a huge improvement to the number of final sales. Clearly those two numbers are very important. 

You Can Tap These Results Yourself

We've had a lot of success with these techniques at Geeksy. Improving the end sales of our clients, but also, critically, the ease which users find what they've come for. 

If you'd like some of these results yourself. Get in touch, and we'll have a chat about what we might be able to do for you! 

By Matt

I'm Matt. I work on all things Marketing at Geeksy. Copy editing, website optimisation, strategy and much more.

Get in touch if you want to know anything else. Happy to chat. 

By Abraham on 1st July 2018 at 10:22

  Digital pipelines have been very important for the holding high standards for the homes. All the issues of the p pipelines and college essay writers have been shared for the happiness of the residents of the h homes.