Bill Gurley’s article on the importance of conversion rates is a must-read for automotive dealers who want to make more money (i.e. every automotive dealer on the planet). Spending lots of money on advertising and SEO plays a very important role for your business, sure, but as Bill says, there’s no leverage to be found in it.
“Think about customer acquisition as buying fuel, and customer optimization as measuring the fuel efficiency of your engine. Ironically, many more companies focus on buying fuel in volume than they do improving fuel efficiency.” Bill Gurley
In order to grow your business by relying solely on these methods, you’d have to increase your ad spend year after year.
You can, however, find an enormous amount of leverage in fine-tuning your site for conversion. Work smarter, not harder, by getting the most out of the visitors who are already landing on your site. If the first article doesn’t do it for you, here are five more reasons why you should be paying close attention to conversion rates.
Besides conversion rate, two important metrics to look at are a site’s bounce rate and exit rate. What exactly is bounce rate? It’s the percentage of visitors who leave your domain after only viewing one page relative to the total number of visitors. Exit rate takes a look at which step in your conversion funnel the user reached before leaving.
Bounce rate alone doesn’t paint a complete picture of how your site is performing, but it can be quite telling when you examine it along with other data, like your site’s conversion rate. Check out this great infographic from Quicksprout with tips to help decrease your bounce rate.