Chapter 1: A Novel Concept
This chapter begins with some intriguing stats:
- 43% of retail sales are to either be influenced by or made on the Internet by 2012
- 83% of business use the Internet to research and find potential vendors
- 75% of users admit to making judgments about the a company's credibility based on their website's design
The book delves into brick and mortar stores that did a little bit of optimization to improve the shopping experience and increase conversions. Simple yet effective changes like widening aisles, keeping store entrances clear, product placement, and other tweaks were made and proved to have a positive effect. Why not do the same with your online storefront, then? Too often a company's website is grossly overlooked because it's not deemed as important as tangible, physical locations. This mindset is erroneous and problematic, especially as the shift to online shopping continues to grow.
You have to think of your website as an investment, plain and simple. The book provides simple formulas and a nice chart that highlights how you can determine the ROI of your investment. It goes something like this:
Return - investment = net gain.
Net gain / investment = ROI
An efficient website typically yields an incredibly positive ROI compared to costs for other resources. No matter who you blame for a poorly structured or even nonexistent website (yourself, management, IT, designers, the design process, an outsourced agency, etc), it's time to stop playing the blame game and start working together to create actual, lasting results. The book cites a great chart showing that it's taken the Internet only 5 years to reach 50 million users, compared to cable (10), TV (13), and radio (38). The internet's incredibly quick adoption rate should be a wake up call to all businesses--lest you want to be left in the dust, you better jump on board sooner rather than later, because the longer you wait, the harder it'll be to compete in the sphere.
Chapter 2: Business Case
This chapter uses a funnel as an analogy. Which would you rather do, increase the number of prospects entering the funnel, or widen the the bottom of the funnel so more prospects are able to get through? Any salesman would rather convert more of the leads he has vs. making a bunch more sales calls. The book then provides a hypothetic scenario where a business has $100k to invest in either acquiring more traffic or improving their conversion rate. Investing in an improved conversion rate yielded a higher ROI over a longer period of time than would investing in a traffic increase. A no brainer, right? Yet I can't tell you how many clients have approached us with the task of "We need more traffic." Well, yes...and no. More traffic is always great, but if it's not the right type of traffic or if it's traffic that's hitting a wall because your site's conversion process sucks, well, that doesn't do you much good, does it?
I'll stop for now because I've only read the first couple chapters, but I'll post new chapters each week until I've finished the book. So far it's a simple read (a little too simple at times; the book actually defines terms like "easy money" and "rational person" in the sidebar) and briskly paced. I do enjoy all of the charts and graphs the authors have incorporated. I know that the first couple of chapters have been introductory, but I'm looking forward to getting deeper into the "meat" of the book, so to speak. Upcoming chapters will focus on the following:
Net gain / investment = ROI
An efficient website typically yields an incredibly positive ROI compared to costs for other resources. No matter who you blame for a poorly structured or even nonexistent website (yourself, management, IT, designers, the design process, an outsourced agency, etc), it's time to stop playing the blame game and start working together to create actual, lasting results. The book cites a great chart showing that it's taken the Internet only 5 years to reach 50 million users, compared to cable (10), TV (13), and radio (38). The internet's incredibly quick adoption rate should be a wake up call to all businesses--lest you want to be left in the dust, you better jump on board sooner rather than later, because the longer you wait, the harder it'll be to compete in the sphere.
Chapter 2: Business Case
This chapter uses a funnel as an analogy. Which would you rather do, increase the number of prospects entering the funnel, or widen the the bottom of the funnel so more prospects are able to get through? Any salesman would rather convert more of the leads he has vs. making a bunch more sales calls. The book then provides a hypothetic scenario where a business has $100k to invest in either acquiring more traffic or improving their conversion rate. Investing in an improved conversion rate yielded a higher ROI over a longer period of time than would investing in a traffic increase. A no brainer, right? Yet I can't tell you how many clients have approached us with the task of "We need more traffic." Well, yes...and no. More traffic is always great, but if it's not the right type of traffic or if it's traffic that's hitting a wall because your site's conversion process sucks, well, that doesn't do you much good, does it?
I'll stop for now because I've only read the first couple chapters, but I'll post new chapters each week until I've finished the book. So far it's a simple read (a little too simple at times; the book actually defines terms like "easy money" and "rational person" in the sidebar) and briskly paced. I do enjoy all of the charts and graphs the authors have incorporated. I know that the first couple of chapters have been introductory, but I'm looking forward to getting deeper into the "meat" of the book, so to speak. Upcoming chapters will focus on the following:
- Managing for ROI
- Landing Pages
- Home Pages
- Category Pages
- Detail Pages
- Forms
- Checkout Process
Hi Rebecca - Thanks for reviewing the book. We're anxious to hear what you think. The first two chapters are definitely on the basic side, but we wanted to appeal to the broader business audience that isn't always as Web-savvy as those of us in the trenches. And we were just trying to have some fun with those definitions. So lighten up already. ;-)
Swami - The 43% stat was derived from Forrester: "The Web's Impact on In-Store Sales: US Cross-Channel Sales Forecast, 2006-2012" and the US Dept of Commerce. We probably should have softened that up and said "estimated at over 40%" instead. Thanks for the feedback.
Glad you stopped by Lance. Quick question, since you already made reference to something I had on my mind -
The 40% or so of "influence traffic", cuts a pretty wide swath. I'd be curious to know the % of actual retail purchases & $$$ made online today vs. 2012. Did Forrester break that out in the report?
Hi Sean - Going from memory here... and I can only remember the %. Something like 3% of all retail sales were online in 2007, projected to grow to ~6% in 2012. Which might sound smallish, but it's billions and billions (with attribution to Carl Sagan) of dollars. The much larger number is the Web-influenced sales that happen offline. I don't think most businesses appreciate how strong an influence their web site has on influencing consumer - and business - buying decisions. If you really want the hard #'s on the e-comm stat, shoot me a message through my site and I'll send you a preso that has that stat.
Haha, okay, now that I know that definitions are a bit tongue-in-cheek, I'll ease up on you a bit. Thanks for stopping by to comment!
Thanks Lance.
Since I had obviously not read your book, I was primarily questioning the study more than the use you made of it.
And yes I do feel more comfortable with the 'above 40%' statement. I will use these stats in the future.
Thanks for the review and summary, Rebecca! Looking forward to the next installments, and glad Lance tipped off our unique sense of humor... (at one point we advise readers to 'whack yourself in the head' with the book for using 'hits' to measure site success).
Besides being a decent head-whacker and ROI guide, I like to add (since I art-directed) that the book's layout and design is part of its message: design has the power to clarify, prioritize, and motivate. Nearly every element received careful (read: crazy-obsessive) attention J .
mexseofan - glad to hear it's already helping you out! I'd be very interested to hear how those changes turn out for you.
we advise readers to 'whack yourself in the head' with the book for using 'hits' to measure site success
Can we not whack clients heads instead? No seriously. not a joke. Please?
There are always clients that deserve a good head whacking!
Jacques and rishil,
sorry, we just can't officially endorse whacking clients on the head ;)
Visualisation of a good whacking proves to be quite satisfying though....we also got some wicked designers that sometimes play out some spoofs, ripping off some of the more more difficult individuals we deal with....the office is always reaqdy for a good laugh, even when clients are being unreasonable....hahahaha
Thats a lovely post Rebecca. I agree with you whole heartedly that a company's credibility depends heavily on it's outfit - website, merchandise etc. No matter how good a website may sound, most of the people (including me) feel scared to make a purchase on a cheesy looking websites and don't instantly trust the information they get from an ugly looking website (no matter how big shot the auther is).
Apart form this a good design gives a big boost to the link buiding campaign as well.
Not only website, if you are wearing a wrinkled dirty outfit and ask then 10 strangers for 100$ credit, they won't even listen to you (no matter how good you may sound); but if you are dressed cleanly in some professional outfit and ask 10 strangers for the same, chances are you will get atleast a 100$.So converting good looking things into sale is easir then ugly ones.
BTW, I find SEOMOZ homepage to be one of the best designs (it looks cool and has highly convertable). But Rebecca, I want to listen it from you - how much do you rate seomoz design out of 10? :)
Matt Inman, our former CTO, designed our site. I'm a big fan of his designs. Check out his portfolio to see what else he's done. :)
Thanks Rebecca, I just love it !
Good subject Rebecca.
I did a review of Web Deign For ROI last week and sum it up like this:
I really would love to see some more design oriented content.
Thanks for the link!
I want there :)
I've had very negative experience with web developers/designers in the past - they usually know how to programme but not how to make a prodact easy to use and appealing... This brought me to conclusion that I have to hire in-house web developers and not to outsource this...
The least frustrating way to do things is to keep everything in-house as far as possible. Things work sooo much better when one can cover everything from design, development and content writing through to SEO. Am blessed to be employed in this scenario and urge you to get there as anh utmost priority. You'll be able to do so much more, so much better and more efficient.
Hey, Rebecca:
My entire company operates because of the lack of knowledge that business owners have about converting traffic.
Most of the companies who hired us (one of them is even a Fortune 500 firm) have absolutely no idea why they have a website other than...
"Well, of course I have to have a site!"
It's a bit frustrating to me when I have to break things down in such an elemntary way, but it certainly pays the bills.
Thanks for the book recomendation... I think I'll pick that one up.
'43% by 2012'. It would be more honest to just say '35 to 45% by 2012'. Nobody can be that precise, especially for such a vague metric.
Good post anyway. I'm wondering what the source of the stats in the book is.
Argh, the "Of course we have to have a website!" claim is just foolhardy. Yes, you do, but it's not the end all, be all. Some companies are just so aloof that you want to give them a wedgie. Yes, I wish I could give an entire company a wedgie (starting with you, Google, just to knock you down a peg or two).
I only hope these clients don't read seomoz (or ask someone else to do that for them). Many peoples businesses are based on skill or knowledge that others have, but emphasizing on that would make them feel stupid ;-)
More traffic is always great, but if it's not the right type of traffic or if it's traffic that's hitting a wall because your site's conversion process sucks, well, that doesn't do you much good, does it?
Quality of traffic vs. quantity of traffic- Cheers to that! It is amazing to me (as you also state) that businesses tend to think in volume and not conversion potential. I feel like I bring this up a lot, but I cannot help thinking of my poor friends in the homebuilding industry. Always interested in getting physical traffic through the model homes, they never focused on driving actual interested buyers to the homes. Nevermind the complete and utter lack of effort on the Internet side. They definitely fall into the "we have a website because everyone has a website crowd."
I am looking forward to subsequent posts :o) Thanks!
thank god someone else is going to be doing the reading! now if only you could do the comprehension part of it for me too. ;) you're making my life as a lazy bastard easy, but not as easy as it could be . . . .
that bit about internet sales in 2012, it'd be interesting to put this in a time capsule and see how that actually pans out to being more or less than estimated.
I can also stop by your place, chew your food for you, then regurgitate it into your mouth, baby bird style.
Okay, that was gross.
Can you just do my seo for me? :D
Sure, just send a check to the following address... ;)
can also stop by your place, chew your food for you, then regurgitate it into your mouth, baby bird style
ummm too graphic !!!!?!!!
Thanks for the review Rebecca, looks a must add to my reading list. It's good to see people promoting the increase conversions not just traffic angle you'd think it was a no brainer but it's surprising how many don't think this way.
Looking forward to your next installment.
> rational person
Looks like I miss out then. ;)
Good stuff.
We regard SEM, SEO and conversion as our three key 'channels'. Clearly, conversion is not a channel but we regard it as more important than, say, affilaite marketing and social media (though those are important too). We call those three our "hard marketing" - if we don't get them right, we're doomed. Very close behind that is retention marketing (which partly fits with average conversion rates and traffic anyway). The other softer internet marketing and offline (eg PR) comes second.
Keep it coming.
Thanks, Rebecca.
You have made me even lazier by offering to read your chapter reviews. It reminds me good ol' Cliff Notes.
I may send you a list of books I intend to read and wait for your review of those as well. ;-)
Haha, watch, I'll get War and Peace, Moby Dick, and other huge tomes in the mail now.
Good review and a Very Good Book too.
I wished they had a Downloadable eBook also. Its pretty expensive to get the book shipped to India (nearly 75% the price of book) and also the taxes amount to 1/3 the book on receiving.
Ask and ye shall receive! The book is newly available for download here:
https://www.peachpit.com/store/product.aspx?isbn=0321515420
Wow, such quick response. Thanks for the link.
Added it into my Buy list. Will check it out this Weekend.
Rebecca,
Great approach - Rebecca Notes! Make sure to give us enough detail to pass the tests!
So have you signed up to be an Amazon affiliate? You could make some money off your recommendations if we purchase.
I recently ordered Tim Ashes' Landing Page Optimization book, and Web Design for ROI was the recommended additional purchase. I should have purchased it then and saved on shipping!
I'll have to get in in case I run into Lance on the bike. It looks like he is a cyclist, too.
Check out their company bios and alternate photos. Love the sunglasses!
https://closed-loop-marketing.com/clm-management.php
We tried doing that about a year ago and made very little coinage when we promoted Steve Krug's Don't Make Me Think.
I have read this book, and I think that it is mostly suited to people who have no or minumum experience with web design for ROI. Other than that, it is a very readable book with good tips, and a good starter for anyone -whether web designer, marketer, entrepreneur- interested in how to design business-wise websites.
@Rebecca - It´s great to see that SeoMoz is covering more topics on Convertion Optimization. Finally, once you get pretty decent traffic to your site after doing some SEO. The next thing to do is try to convert most of that traffic.
I bought "Web Design for ROI" by Lance Loveday, and "Landing Page Optimization" by Tim Ash, just two weeks ago from Amazon, and had them shipped down here to Mexico. But, after reading the Index of both Books quickly I decided to read in full "Web Design ROI" first, and I just couldn´t read it fully without stopping at the end of every chapter to change my sites pages. I really recommend this book, it´s really easy to understand and it really does the job of "converting you " into make the appropiate changes to your site.
@Lance Loveday - Great job on this Book. You are keeping me busy on making changes to my site after reading your Book.
Saludos.
Great read, informative and finger-on-the-pulse savvy, hopefully this post will get the attention it deserves - lots of traffic :)
This is even better than Cliff Notes. We get it spoon fed once a week.
Now, if you start serving beer, it's gonna be standing room only around here!
They actually have a nice little website strategy template (pdf download) over there as well.
Ta for the post, Rebecca. It is nice when somebody else can summarise the content of a publication in a concise form. Quality vs quantity is definitely what we strive for, as a high conversion rate is much more desirable than thousands of leads that don't convert.
The quick adoption rate of the internet is indeed exciting news for all of us and publications like this actually make our lives easier by making our work less arcane and more mainstream.
Will definitely recommend this publication to some of our more bull-headed clients!
Bought this some time ago, checking mail every day "_"
Thanks for the review and whetting my appetite for more.. Just what I need another book to add to the list...