Recently did an analysis of one our businesses – Starlit Citadel – and noticed that conversion rates had taken a drastic turn down. It went from 1.56% to 1.15%. That’s a horrid, horrid drop and even though we had a lot of competition show up recently, it seemed like a truly significant drop.
Now there’s a few things we could do. Drop our prices and kill our margins, which if it had allowed our conversion rates to stay the same would have resulted in overall higher sales and a marginal improvement in profits (before taking into account additional staffing costs, etc.).
On the other hand, perhaps we should look more closely first. So, here’s what we looked at to figure out the change:
- Compared it to previous year stats – nope, still a drop for sure
- Compared it against traffic sources – all over drop pretty much. Not good…
- Compared it across new and old visitors – hmmm… new visitors were the one who killed it most
- Compared it based on location – ah, this is more interesting. Traffic had gone up significantly in countries outside of Canada. This pushed down our conversion rates because people who aren’t Canadian just aren’t that interested in us.
As we said, details matter. If we had decided to take steps to decrease our prices and increase our conversion rate, it would have helped but only a bit. Instead, we’d have suffered more of a loss because the traffic from outside of Canada just don’t care about us. A price drop just wouldn’t help.
So, details matter. Dig, dig, dig to understand what happened and is happening.