Marketing Experiments discusses how small improvements to pages compound to deliver dramatic results.

We are all familiar with the concept of compound interest as it applies to the investment world. The same principal can be applied to making small improvements to your web pages.

Here's an example of how it works...

Making just nine improvements, and using a conservative estimate of just a five percent increase in each area, we can see the true potential of compounded incremental gains.

The following table was generated for an imaginary business with these parameters:

• $100,000 in initial monthly revenue. 
• $85,000 in expenses, and therefore $15,000 in initial monthly profit. 
• 50,000 PPC clicks per month at $0.20 starting cost per click.

Imagine implementing nine improvements, one per month, over nine consecutive months.

Here is the effect of those small improvements:

What you need to understand: These nine micro-gains produced an additional $48,312 in monthly profit.

Key Point: The "Change in Net Profit" column shows which of these five percent micro-gains actually had the most impact on profit. Therefore, you may want to implement those changes first. (Compounding has the biggest effect when you leverage the impact of the biggest improvements early on.)

You'll find the full set of research results in the Compounding Effect of Micro-Gains Test Brief.

The Marketing Experiments Journal publishes primary test results from work with our research partners once every two weeks. Subscription to the Journal is free and gives you full access to both our archives and teleconference calls. Subscribe here.