Calculating Sales or Conversion Targets

Calculating Sales or Conversion Targets

Is your website providing your company with enough sales or sales leads?

This calculator can be used to estimate how many visitors your site needs to meet your sales targets.

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.

Setting targets is similar to the budgeting process used to determine the monthly sales targets:

  1. Set the primary goal, e.g. the website should generate $300,000 in revenue per annum
  2. Define the conversion points for your site – If you don’t know what these are, you should talk to us
  3. 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
  4. 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.
  5. Estimate your current total monthly revenue from the website: 200 × $100 = $20,000 per month
  6. 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 achieved.

Interested in knowing more about calculating sales targets for your website?

Panalysis are experts in assisting business managers to determine and apply key performance indicators such as sales target forecasts to their website.

Please contact us for an initial free consultation to discuss your requirements. If you need increase monthly visitors, download our best practice campaign tracking guide to determine what’s working best for you.