Calculating Sales or Conversion Targets
Is your website providing your company with enough sales or sales leads?
If not, then use this calculator or
talk to us, we can help.
(BTW, your first 30 minutes are free if you mention this advertisement).
This calculator can be used to estimate how many visitors your site needs to meet your sales targets.
In much the same way that your company almost certainly has monthly sales targets that are determined through
the budgeting process, your website should also have defined targets that can be tracked each month. The process
of setting targets is similar to the budgeting process used to determine the monthly sales targets:
- Set the primary goal, e.g. the website should generate $300,000 in revenue per annum
- Define the conversion points for your site - If you don't know what these are, you should talk to us
- Determine your current conversion rates for the site, e.g. 200 sales from the website per month divided by
10,000 visitor sessions per month equals a 2% conversion rate
- Determine the current average value of each sale from the website., e.g. $100.
Please note that whilst your site may not sell products or services directly you should be able to link it
to your sales process in some way. Panalysis can assist you in tracking sales arising from your website.
- Estimate your current total monthly revenue from the website: 200 × $100 = $20,000 per month
- Estimate current trends in growth in the number of visitors, e.g. 2% per month
To calculate your cost you need to know:
Annual Target
This is the target that you have decided that you need to meet in order for the website to be considered
successful. If your website sells products then this is likely to be based on the sales forecasts made when
implementing the website. If your site is based on branding or is an informational site, then this figure may
be based on the number of conversions.
A conversion being the point where a casual site visitor makes use of a section of the site, downloads a form,
or completes an action that your company deems important on its website. If you would like help in determining
what your conversion points are on your website, contact us for further information.
Average Monthly Site Visitors
On average how many visitors per month are visiting your website from your target markets. It is important to
determine the number of visitors to your site for each geographic region for your target market. I.e. If you
only sell in Australia, then your monthly number of visitors should be for those visitors from Australia.
Conversion Rate
This is the rate at which your website converts casual visitors to customers, sales leads or website users.
Most web sites exist for a commercial reason, which could be to generate sales of product via the web site or to
generate sales leads. It is therefore important to track the conversion of visitors to persons enquiring or
purchasing goods from your organization i.e. converted customers. This is achieved by selecting one or more key
pages or resources, such as enquiry forms, and measuring the number of visitors who access these pages/resources
each month and complete the required activity.
Since it has a direct effect on the business success of your website, the number of conversions (e.g the number of
downloaded application forms) is one of the most important performance indicators that you should monitor.
Average Value Per Sale
This is the average value of each sale made via the website or arising from the website. If you are not selling
products then this is the estimated value of each conversion to your company.
Monthly Growth
Assuming that you are seeking to improve your current position. What is the monthly growth you expect from your
website. This should be a realistic figure that can be acheived.
