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26/02/15
© Peter O’Connor, Essec, 2015 1
The Challenge of Conversion
Dr. Peter O’Connor Essec Business School
Ques?on 1 How will people find your site(s)?
26/02/15
© Peter O’Connor, Essec, 2015 2
Ques?on 2 Why should customers book
on your site (rather than elsewhere)?
Conversion No point in geLng them to your site unless you
can sell to them
26/02/15
© Peter O’Connor, Essec, 2015 3
The Customer Acquisi?on Equa?on
Cost Per Click Luxury Hotel Paris
€ 0.50
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© Peter O’Connor, Essec, 2015 5
European Average Conversion Rate From Paid Search
3%
So…. CPC = € 0.50 Conversion rate = 3% 0.50 * 100 / 3 Customer Acquisi?on Cost = €16.78
26/02/15
© Peter O’Connor, Essec, 2015 6
So…. CPC = € 0.50 Conversion rate = 3% 0.50 * 100 / 3 Customer Acquisi?on Cost = € 16.78 Shopping cart value? €100 Distribu?on cost = 17%
26/02/15
© Peter O’Connor, Essec, 2015 7
Cost Per Click Luxury Roman?c Weekend Break Paris
€ 27.50
So…. CPC = € 27.50 Conversion rate = 9% 27.50 * 100 / 9 Customer Acquisi?on Cost = € 300.00 Shopping cart value? €3000 Distribu?on cost = 10%
26/02/15
© Peter O’Connor, Essec, 2015 8
What can you play with? CPC = € 27.50 Conversion rate = 9% 27.50 * 100 / 9 Customer Acquisi?on Cost = € 300.00 Shopping cart value? €3000 Distribu?on cost = 10%