The Business Value of Landing Pages

The Business Value
of Landing Pages

© i-on interactive, inc. All rights reserved • www.ioninteractive.com
1. 3 Big Benefits Of Landing Pages
2. 6 Marketing Metrics You Need To Know
3. The Math For Calculating ROI
4. Building A Business Case For Landing Pages
What’s inside...

Why do we need
landing pages?
our new website
is so great!

More effort
More Resources
More content
More to manage
Cons:
Landing
pages
More to integrate

So, Why The Heck Would You
Want To Use Landing Pages?

So, Why The Heck Would You
Want To Use Landing Pages?
Because they work.

3 BIGBenefits of Landing Pages

1. Better User Experiences
2. Perfect For Lean Experimentation
3. Higher Leads, Sales & Revenue
3

Better
first impressions

An impression
is formed in
1/20th
of a second.
Make yours
count.

A website is like a crowded room.

A landing page is a personal introduction.

Are you making the
right ﬁrst impression?
• No focus
• Lost “scent”
• No call-to-action
• Crowded room

• Delivers on promise
• Visual continuity
• Highly specific
• Handshake

Are dropping your visitors off in
a crowded room?

Or making a personal
introduction?

vs
c a m p a i g n
l a n d i n g
e x p e r i e n c e
d e e p l i n k s i n t o w e b s i t e
Personal introduction
Crowded room

Easy
experimentation

Most effective method for testing
value proposition…

Low risk method to learn
• Agile experiences
• Reusable, disposable
• Test & learn capability
• Low investment
• Low risk

Social network
sign on option
increases
traditional form
sign ups for
iContact!

Radical
innovation
test waves
results in
264% lift for
Marian
University!

Increased
leads, sales & revenue

3000% increase
in lead volume

July 2011 Dec 2012
350% increase
in digitally-driven revenue

H i g h e r c a m p a i g n c o n v e r s i o n r a t e s m e a n
h i g h e r l e a d v o l u m e w i t h s a m e m e d i a s p e n d

6 Marketing Metrics That
Lading Pages Can Impact

ﬁnancial
operational
strategic
tactical
CTR
Conversion Rate
CAC
ROI
CPL

Customer Acquisition Cost
noun
(ABBREVIATION CAC)
The total Sales and Marketing cost — includes
advertising spend, salaries, commissions and bonuses,
overhead — in a time period, divided by the number of
new customers in that time period.

CAC
Total cost
Number of customers acquired
To calculate CAC, the number of customers acquired is divided by the
total S&M cost over a given time period (month, quarter, year); the
result is expressed as a dollar amount.

CAC
$100,000
10 customers
= $10,000
To calculate CAC, the number of customers acquired is divided by the
total S&M cost over a given time period (month, quarter, year); the
result is expressed as a dollar amount.

Return on Investment
noun
(ABBREVIATION ROI)
A performance measure used to evaluate the
efﬁciency of an investment or to compare the
efﬁciency of a number of different investments.

ROI = (Gain from investment - Cost of investment)
Cost of investment
To calculate ROI, the beneﬁt (return) of an investment is divided by the
cost of the investment; the result is expressed as a percentage or a ratio.

ROI
$25,000 - $10,000
$10,000
= 150%
To calculate ROI, the beneﬁt (return) of an investment is divided by the
cost of the investment; the result is expressed as a percentage or a ratio.

High ROI is dependent
on increased revenue

Cost Per Lead
noun
(ABBREVIATION CPL)
Total cost of online advertisement campaign divided by
the number of leads generated. Includes all campaign
costs, including advertising spend, design/creative,
production and hosting fees.

CPL
Total cost
(spend + creative + production + hosting)
Number of leads
To calculate CPL, the total cost is divided by the number of leads
generated; the result is expressed as a dollar amount.

CPL
$5,000 cost
100 leads
= $50
To calculate CPL, the total cost is divided by the number of leads
generated; the result is expressed as a dollar amount.

Higher lead-gen efficiency
lowers CPL

Lower CPL means
the same spend is
generating more leads

Lower CPL trickles up to
lower CAC & higher ROI

The surest path to lower
CPL is higher conversions

Conversion Rate
noun
(ABBREVIATION CVR)
The percentage of visitors who take a desired
action — submit a lead form, purchase a product,
opt into a subscription, etc.

CVR Converted visitors
Total Visitors
X 100
To calculate conversion rate, converted visitors are divided by total
visitors and multiplied by 100; the result is expressed as a percentage or
a ratio.

CVR 1,000 Converted visitors
10,000 Total Visitors
To calculate conversion rate, converted visitors are divided by total
visitors and multiplied by 100; the result is expressed as a percentage or
a ratio.
X 100 10%

Conversion rate
is a tiny,
non-financial metric

Why? Because conversion
rate doesn’t directly
translate into dollars.
And landing pages cost
money.

But higher conversion rates
impact critical marketing
metrics.

higher conversion rates=
lower cost per lead
lower cost per customer
higher ROI

a landing page can eat a
website for lunch when it
comes to conversion.

We help brands create effective landing pages.
90% of our customers report positive ROI.
Find out more:
http://www.ioninteractive.com

Thank you!
@ioninteractive
info@ioninteractive.com

The Business Value of Landing Pages

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