Do you get enough visitors to your website? If you’re like most businesses, you can always use more. Numbers of website visitors are important marketing metrics to track. After all, increasing these should ultimately lead to more customers, right?
Traditional marketing and advertising play an important role in driving traffic, but consumers have virtually unlimited access to the Internet on a broad range of devices, to do their own product research, searching, surfing, socializing, and shopping online, with less reliance on your company sales reps for information.
Therefore, a core component of any manufacturing company’s marketing strategy is a company website built for lead generation. There are many online marketing tactics available to get your website found, including search engine optimization (SEO), digital advertising, social media marketing, local directories and review sites, and more. The bottom line: online marketing drives more visitors to your website.
But visits, likes, and shares alone don’t pay the bills. Ultimately, you’re in business to make money. So, how many website visitors will it take to get to your company revenue goal (am I the only one who hears a Tootsie Roll Pop commercial)?
Fortunately, with a few common data inputs (revenue goal, sales close rate, website visit to lead conversion rate) it’s simple to calculate how many website visitors you’ll need each month to achieve your business growth goals using the formula below. To make it even easier, we’ve created this Google Sheets calculator.
Show Me the Money
Start with your revenue goals. Maybe you want to increase profits by a certain percentage this year over last, or maybe you want to hit a specific dollar figure. Either way, start with how much money you want to make this year.
Next, determine the value of a typical customer or deal. This can be difficult to articulate. An industrial manufacturer may sell a $50 part to one customer, a $100,000 assembly to another, and have a recurring customer for $25,000 each month. For the purposes of these calculations, decide what is a typical case and use that number to create your estimate. You can input different numbers into the calculator to see the effects.
Divide your revenue goal by the typical value of a customer or deal to determine how many new customers or deals you’ll need to close this year to achieve your revenue goal.
Number of Customers or Deals Needed = Revenue Goal / Value of a Customer or Deal
For example, let’s say we want to add $1.5M to the bottom line this year. If the value of a typical deal is $10k, then we would need 150 new deals to reach our revenue goal.
You likely get contacts from many sources: word of mouth, customer referrals, tradeshows, industry publications, and more. Some become customers, some don’t. What percent of all your leads (from all sources) become customers? This is your close rate. A good benchmark is between 2% and 10%.
Divide your Number of Customers or Deals Needed (above) by your Close Rate to calculate how many leads you’ll need to close that many customers.
Number of Leads Needed = New Customers / Close Rate
Using our example from above, if you closed 5% of all leads, you would need to generate 3,000 leads from all sources.
Leads from Your Website ONLY
Your website is just one piece your overall marketing strategy and is only one of several marketing tactics you use for lead generation. Next, determine what percentage of all leads you expect to be generated from your website only.
If your website will augment your existing successful lead generation efforts, maybe it should generate an additional 10-20%. If you expect your website redesign to be responsible for most of your new leads, then that percentage will be higher.
Multiply your Number of Leads Needed (from above) by the percentage of expected website leads.
Leads from Website = Number of Leads Needed x Percentage of Expected Website Leads
Based on our example, if you expect your website to be responsible for 20% of all your new lead generation, then it will need to produce 600 leads.
Visit to Lead Conversion Rate
It would be great if every website visitor became a lead. The fact is, most do not. Great quality, high value content is what influences a visitor to fill out a web form with more than their name and email address. According to MIT, that amounts to only about 1-3% of website visitors.
To calculate how much web traffic you need, divide your Leads from Website (above) by your Visit to Lead Conversion Rate, then divide by 12 to see how many visits you’ll need each month.
Monthly Traffic = (Leads from Website / Visit to Lead Conversion Rate) / 12
So, if your website needs to generate 600 leads this year and your Visit to Lead Conversion Rate is 1.5%, then you’ll need 40,000 website visitors this year, or about 3,333 each month to achieve your revenue goal.
While this is not a crystal ball for guaranteed success, working through these simple steps provides some foresight into how much work you’ll need to do to drive enough traffic to your website to reach your revenue goal.