I am currently writing an ecommerce business plan and it requires sales forecasts. I am using adwords to generate a traffic base and now I have come to the point where I need to convert my numbers into $$. So my question. In the past I have heard a good rule of thumb that for every 10 people who visit you store or do direct marketing to, one will buy. I am sure that things are different with ecommerce, but I cannot seem to find any references. Can anyone show me something?? Reference that is? I have been googleing the word "turnover" but have not had any luck. Would this be called a conversion?
Oh. I forgot to mention I am aware of CTR and have already calculated my average position. CTR is not what I am after, just a raw ratio of this turnover/conversion once a potential customer is already on your site.
CTR is not page rank or related to any ranking it's your click through rate..Click-through rate (CTR) is a way of measuring the success of an online advertising campaign for a particular website. CTR= number of clicks on an ad divided by the number of times the ad is shown (impressions), expressed as a percentage
Well, that's pretty much depends on how well your traffic is targeted, on your keywords and what niche you are working in. For some niches 1:80 is a very good ratio and for some it's a disaster
This is very hard to say. I would suggest you to use a real world stat. Make a small site, do PPC with a small budget - and see how well it converts. Then use that small data to make a better assumption... that will make your presentation stronger.
Just wanted to let you know that I found the answer. I should have just taken my own advice and used the word "conversion" instead of "turnover". There is information everywhere and it seems to be a consistent 3%, less than my speculative 10%, but that's life I guess. This is in relation to ecommerce for those later on who find this thread in their search results.