That could easily be a case study for the Harvard Business School.
New York, NY (PRWEB) May 25, 2005
Did you know that a website is the only sales channel where you can compare how many people are looking at an item to how many are buying it?
A new book, "Call To Action" by Bryan and Jeffrey Eisenberg, describes this "look-to-book" ratio and outlines how this powerful...yet woefully underusedÂ measurement can dramatically improve the sales and profits of any website.
The "look-to-book" ratio is also known as the "browse-to-buy" ratio. Here's how it works. If 100 online visitors browse a product and only 1 person buys it, the "look-to-book" ratio is 100:1.
"You can't get that number with catalogs. You can't get it in a bricks-and-mortar storeÂ unless you want to look like a detective to your customers," explains Jeffrey Eisenberg. "But with a website, you can get near-perfect information about customer behavior 24 hours a day, 7 days a week."
Recently, a multi-million dollar specialty retailer performed a "look-to-book" ratio for their top 100 online products and found out something that surprised them. While many web visitors were browsing their items, not many were buying.
This led to extensive research to discover the cause of the problem. The specialty retailer found out that they were being dramatically under-priced by their online competition. So they executed a series of pricing tests, reducing their prices until they achieved their maximum gross margin.
The result? The online retailer raised their gross margin on their top 100 online products by 90%Â simply because they had been smart enough to perform the "look-to-book" ratio.
"A 90% increase driven straight to the bottom line!" exclaims Jeffrey Eisenberg. "That could easily be a case study for the Harvard Business School."
Bryan Eisenberg and Jeffrey Eisenberg are co-founders of Future Now, Inc., a marketing boutique focused on helping clients convert their website's traffic into leads, customers and sales by applying Persuasion Architecture, copywriting, usability and web analytics to design, redesign and optimize websites and other online marketing efforts. Future Now, Inc. has helped clients such as Dell, GE Volvo, Overstock & Disney.
Bryan Eisenberg or Jeffrey Eisenberg