INMA_A01.QXD

This model is instructive for improving Internet marketing within an organisation

since these different types of conversion efficiency are key to understanding how effec-

tive online and offline marketing communications are in achieving marketing

outcomes. Figure 2.13 is an adaptation of the original model of Berthon et al. (1998)

from Chaffey (2001), which highlights the key conversion metrics of attraction effi-

ciency and conversion efficiency. It shows key traffic or audience measures (Q 0 to Q 4 )

and key conversion efficiency ratios. The model has been revised to reflect current

nomenclature. Also, the original work was focused on conversion to purchase – the

model is more widely applicable since it applies to any marketing outcome achieved on

site, whether this be a new lead from a potential customer, an e-mail registration from a

competition entrant or a sale. Additionally, it has been modified to distinguish between

first-time visitors (Q 2 ) and repeat visitors (Q2R). E-marketers need to know how conver-

sion effectiveness differs between first-time users and repeat users. An additional

important aspect of online buyer behaviour not shown in the figure is the site path or

clickstreamfor different audience types or segments.

Figure 2.14 shows an example of how measuring conversion rates can be used to

improve web marketing. Numbers are across a fixed time period of one month. If for a

particular market there is a potential audience (market) of 250 000 (Q 1 ), then if online

and offline promotion techniques (Chapter 8) achieve 100 000 visitors to the site (Q 2 ),

marketers have achieved an impressive conversion rate of 50%. The online marketers are

then looking to convert these visitors to action. Before this is achieved, the visitors must

be engaged. Data from log files show that many visitors leave when they first visit the

home page of a site if they do not find the site acceptable or they are not happy with the

experience. The number of visitors engaged (Q 3 ) is 50 000, which is half of all visitors.

For the visitors that are engaged, the next step is to convert them to action. This is

achieved for 500 visitors (Q 4 ), giving a conversion rate (Q 4 /Q 3 ) of 1%. If what is calcu-

lated (as is most common) is (Q 4 /Q 2 ), this gives a conversion rate of 0.5%.

CUSTOMERS

Clickstream
The sequence of clicks
made by a visitor to the
site to make a
purchase.

Figure 2.13A model of the Internet marketing conversion process

Repeat

visitors Q2R

Internet

universe Q 0

Unique

visitors Q 2

Target

audience Q 1

Active

visitors Q3R

Active

visitors Q 3

Key

outcomes Q4R

Key

outcomes Q 4

Awareness

efficiency

Performance

drivers

Q 1 /Q 0

Attraction

efficiency

Q 2 /Q 1

Engagement

efficiency

Q 3 /Q 2

Conversion

efficiency

Q 4 /Q 3

Q 2 /Q2R

Q 3 /Q3R

Q 4 /Q4R

Audience

measures