The cost per conversion refers to the cost for the website owner of converting traffic into the desired action. The desired action is also referred to as a successful conversion. Depending on the nature of the website, the desired action or successful conversion can involve a newsletter subscription, a membership registration, a software download, the purchase of a product, or some other action. The cost per conversion is the actual cost that the website has incurred over the viewing time of visitors divided by the number of successful conversions that occurred due to the clicks that were made.

The cost per conversion is used as a barometer of the successfulness of the website including its marketing techniques and advertising practices. This data can be used to troubleshoot poor performance and improve the performance of the website. Analyzing conversion statistics such as the rate of conversion is essential to the determination of the website’s return on its investment.

• Google Adwords Learning Centre with information on ROI

The acronym ROI stands for return on investment. This business term refers to the measurement of revenue or profit that a company generates from a specific investment or several investments that have been grouped together. Website owners can calculate the ROI on their investments using marketing programs to promote their websites.

Calculating the ROI involves determining the gain from the investment and the cost of the investment. The gain or benefit from the investment less the cost of the investment is divided by the total cost of the investment, resulting in a number that is expressed as a ratio or percentage. This is the ROI (ROI= financial benefit from the investment - cost of the investment/ cost of the investment.) A positive answer or number indicates that the investment has been profitable for the company or business. On the other hand, a negative ROI indicates that the venture has not been profitable.

• wikipedia explanation of ROI
• Investopedia definition of ROI
• SearchCIO.com Definitions
• wikipedia explanation of ROI

Two cost-effective marketing tools that are widely used are emails and newsletters, often referred to as eShots. Both allow you to stay in contact with potential or actual customers, maintaining communication that is essential to the success of your business. It is important to note that you must have permission to contact each individual before sending any emails. Both forms of eShots, emails and newsletters, should be kept simple in design. One or two calls to action should be included and the eShot should work well even if any included images do not load.

Newsletters can be used to update customers on new products and services as well as any relevant changes. Software applications are available that not only set up your eShot campaign, but also, they track the outcome of the campaign for you by gathering statistics on soft bounces, hard bounces, and how many emails have been forwarded, deleted, and read.

• eshots — The Leader in Interactive Event Marketing
• Kaweb Email marketing is a good way of keeping in touch with existing clients as well as attracting new ones
• Leadline definition of eshots