Launched by President Regan in 1986, April has become the month dedicated to the awareness of the importance of math and education. Math has many applications in other fields such as business, medicine, and teaching. The application of math has many possibilities including creating robots and smart investments. But before we can get there, schools get kids engaged with a couple of Spirit Day Activities that create a fun spin on Math.
- Pajama Day (Math is Dreamy)
- Twin Day (Seeing Double)
- Nerd Day (Who doesn’t want to be a Math nerd?!)
But we do not need those special dress-down days to celebrate a student’s forced interest in math and stats.
We do this every time when they jump on a computer. Learning the flow of web traffic now will allow our future business owners to understand the behavior of their audience on their web pages. Getting your child to understand the basics of conversion numbers rates will be a long but beneficial investment as you look to start an e-commerce site and hire your children for free. But before you can do that, let’s focus on the basics to understand what your children will need to prioritize when that time comes.
Web Traffic Bounce Rate
How long do people stay on your website? Is it engaging? If not you will see an increase in your bounce rate. Bounce rate is the rate at which the consumer jumps onto your website and essentially leaves after only visiting one page (entrance page). It is as if a customer were to walk into your physical store, take one look into your eyes, and immediately walkout. You are offended but what did you do to convince the audience to stay?
Things to consider: confusing designs, lack of architectural flow, and lack of engagement will see this a trend if things are not addressed appropriately. An average bounce rate lies between 20% and 45%. If you are averaging 100 visitors a day, between 20 and 45 of those visitors will bounce right off your entrance page.
You are set to make your metrics follow and do not need to attempt to maintain a low bounce rate. But consider how user-friendly your website is, make the proper adjustments and give the time for the customers to hop on the platform and traverse the changes.
Converting Web Traffic
If you get the audience to stay on your page, now you must get them to execute the desired action. Action such as subscription rates, purchases, and/or clicking on certain links are considered part of the Conversion Rate. But conversion rates are about what the goals are for your website. Are you selling, are you informing, or are you just gaining an audience?
These factors matter when you are deciding what your success metric is. The average conversion rate for e-commerce lies at 1.84%. Any large corporation will boast about achieving 10%+ conversion rates so do not feel underwhelmed by the average 1.84%. Many things to consider are the efforts outside of your e-commerce page that is taking place.
Are you performing any social marketing to draw attention to your webpage? Do you currently have a newsletter sent out to your audience to keep them up to date with the latest in your e-commerce growth? Does my Call to Action (CTA) engage the consumer to click through and end up making a purchase or subscription? If the CTA calls for the audience to “click for more info”, let’s invite them to “learn about our offers”.
And be sure to test this regularly. One big part of math is testing and comparing the stats. Math never changes but you can always increase your odds.
Cost of Converting Web Traffic
After we do testing, it’s time to figure out if this is a good investment and we do that by determining the Customer Acquired Cost (CAC). CAC is the amount of money spent in acquiring a new client. This is essentially your Return on Investment (R.O.I.).
Many factors play into the CAC from your paid marketing efforts, maintenance fees, and actual sales. Without getting too specific about numbers and conversions, any number that is deemed profitable is a good CAC. An important factor to consider when evaluating profitability is the Customer Lifetime Value (CLV).
This is the business metric that estimates the total predictable repeat purchase rate of a customer over the lifetime of their time with your brand. It is great to get new customers, you also want your repeat customers to be a part of your branding and increase that lifetime value.
Your CAC should be 3 times the cost it takes to acquire them. So if you are spending 10 dollars to attract that one customer then they should spend 30 dollars for you to take in your profit and be able to reinvest for your next customer. It is not as easy as it sounds but with the right implementation of UX and engaging content, you can create the next e-commerce giant.
And if at the end of the day, your child is not suited to run your business for free, education in math and stats will promote them to a healthy salaried career.
Data Scientists earn an average of 120k annually. Data scientists review figures and statistics in search of insights and conclusions, ultimately seeking solutions that present the largest potential opportunities to their organizations. Data Scientists are problem solvers and when the problem involves money, math and statistics are the only tools to help solve.
Not bad for a math nerd.