Your “Conversion Rate” is the ratio or percentage of web site visitors you ‘convert’ from just viewers to buyers, compared to those just looking. So if 1 person out of 100 visitors to your web site buys something, you have a conversion rate of 1%. (If you make $500 profit per sale, you just made $500.) If you go from 1 person buying to 2, you have doubled your conversion rate (and profits) WITH NO EXTRA ADVERTISING COST.
Doubling Your Buyers & Budget…
You could increase your ad budget, keyword bids, or rankings to get more traffic so that instead of 100 visitors, you have 200. Thus, 2 buyers. But it usually costs you DOUBLE to do that (that is not bad strategy either, as long as you are getting a positive ROI). Based on the theoretical number used above, you made $1000 in profit, but it cost you DOUBLE to do that.
… or Double Your Customers AT NO EXTRA COST
A smarter move is to simply double the percentage of people converted to being a buyer. If you go from just 1% buying to 2%, you have doubled your conversion rate AT NO EXTRA ADVERTISING COST. You made $1000 for the same advertising cost as $500 profit.
How Do I Increase My Conversion Rate?
There are a number of ways to do that…
- Make your web site landing pages more enticing/compelling to buy.
- Landing pages are just the pages that visitors first hit when they click on an ad or organic listing from search engine.
- Make your landing page a one-stop page. They can see the info they need AND BUY right from that page without moving through your web site.
- The ‘new’ design style leans more toward minimal content and a few pictures. BUT, people can’t touch, feel, smell, hold, or taste anything on the web, so you need to provide as much information as they need to make a buying decision. The ‘new’ design style may be clean and pretty, but it doesn’t pay the rent.
- Reduce “shopping cart abandonment” by making your buying process simple and pain-free.
- Many shoppers just walk away from the sale if it is too cumbersome or painful (what if the check-out line at Target was 30 people long and you only had 3 non-critical items in your cart?)
- Make your landing pages very specific to what your ad was about.
- If your ad was about wedding cakes and you take them to your bakery web site home page and they have to look for wedding cakes, they will jump ship. Take them directly to the wedding cakes page.
- Make your ‘call to action’ very plain and easy. Show them what you want them to do. They are half way sold by simply coming to your site through an ad click.
- Make your Pay-Per-Click ads more specific. By writing your ads so that you are very specific about what you are advertising, when people click on that ad, and they get exactly what you are advertising, then there is an increased possibility they will buy it, since that is what they were looking for.
- Discourage Non-Qualified Clickers. If less people who are not actually qualified to buy your products (say you sell only in Charlotte, you don’t want people in Iowa expensively clicking on your ads). By writing your ads in a way that discourages bad clicks, you are getting a higher number of qualified clicks, thus a higher percentage of sales per the number of clicks you get.
- The Art of Ad Writing – you may have noticed you need to creatively write ads that inspire and compel qualified buyers and discourage non-qualified people from clicking on your expensive ads.
Maybe It’s An Incorrect Perception
- Track your off-line sales. Maybe someone clicked on your ad, saw your landing page and CALLED you. That is still a sale driven from your ad. Track it. If you have ONE additional sale from your 100 visitors, you have DOUBLED your conversion rate.
- Most clients we talk to are not accurately tracking where their customers/prospects come from.
- Track every email and phone call that comes into your company and ask WHERE they heard of you. Many sites are just informational and not e-commerce. That information is marketing GOLD.
- Track later sales from repeat customers. The ‘lifetime’ value of a customer from that ad applies to the cost of that ad or ranking. A sale now and one in 6 months with out additional expenditure still affects your conversion rate.
Contact Our Marketing Group about how they can assist you monthly as a part-time marketing department without the full time cost, or Metheney Consulting on developing your online marketing, social media marketing, SEO, PPC, email campaigns, pay-per-click advertising strategies, web site maintenance and development, web site design, blog development, and traditional marketing consulting on a project-by-project basis. Our Marketing Group provides digital marketing services for a fraction of the cost via monthly retainers and sliding scale hourly contracts. Call or email us at .
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