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There is no doubt that conversion rates are important to the success of any business. After all, a company cannot make money if its potential customers are not converted into actual paying customers. But what many business owners don’t realize is just how big an impact meeting your conversion goals can have on your company’s bottom line.
Consider this: If your business has a 1% conversion rate and you’re bringing in $1 million in revenue each month, increasing your conversion rate by just two percentage points — to 3% — means you’re bringing in an additional $2 million each month. That’s an extra $24 million a year!
Of course, increasing your conversion rate is easier said than done. But it is certainly not impossible. Here are a few tips to help you boost those numbers and reach your full income potential:
Related: 5 key tips to improve conversion rates
1. Perform funnel analysis on a regular basis
Funnels can be very simple (ad, sales page, delivery email) or incredibly complex (multiple ads lead to segmented landing pages leading to a sales pitch that leads to… well, you get the idea). At each stage of the process, your funnel loses people or moves them to the next stage.
If you don’t regularly perform a funnel analysis, commonly referred to as an audit, you may be missing out on revenue that could be a game-changer for your business. Let’s look at a simple evergreen webinar funnel with a “buy it now” option for a $1,500 offer as an example. We’re going to keep it super simple and assume you just send one email to your existing list to direct them to the webinar registration page. Your funnel will look like this:
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E-mail: convert at 50%
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Registration page: 15%
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webinar: 20% viewing rate
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Order conversions: 0.67%
With the conversion rates above, you’ll make $1,500 or one sale.
Your email converts very well, so we don’t have to deal with that, but the registration page? Doesn’t get that hot. We want that number to be 25% or higher, so we’re going to optimize the registration page.
This may mean tweaking the text, design, images – even the offer itself – until we reach our goal of a 25% registration page conversion rate. All other things being equal, that increase in conversion rate on the registration page alone will generate a new sale, bringing your revenue for this funnel to $3,000.
Going through each step in your funnel like this can take you from $1,500 to $28,500 – just by hitting the minimum conversion rate in each funnel stage!
2. Make sure your website is optimized for conversions
Your website is often the first point of contact between you and a potential customer, so it’s important to make sure it’s right. Is your site easy to navigate? Do the pages load quickly? Is the copy clear and concise? Is there a strong call-to-action on every page?
If you answered “no” to any of these questions, it’s time to do some website soul searching. Making even small changes like adding testimonials or improving your calls to action can make a big difference in terms of conversion rates.
Related: 5 tactics to boost your website’s conversion rate
3. Segment your email list
In email marketing, quality is more important than quantity. Sending a generic message to your entire list is likely to yield few conversions because not every recipient will be interested in what you have to say. Segmenting your list allows you to send more targeted, relevant messages that are more likely to lead to conversions.
Not sure how to segment your list? Start by dividing it into smaller groups based on factors such as geography, age, gender, interests, etc. Then create different posts for each group.
4. Personalize the user experience
In today’s competitive market, just having a website is not enough – you need to do everything you can to stand out from the crowd. One way to do that is to personalize the user experience for each visitor to your site.
Thanks to advancements in technology, this is easier than ever before. There are now plenty of tools available that allow you to collect data about each user and then use that information to display content tailored specifically to them.
Related: Why a “Personalised” Customer Experience Is Critical to Your Business Success
Reaching – and exceeding – your desired conversion rate can have a huge impact on your business revenue. If you’re not happy with your current numbers, take heart; there are plenty of things you can do to improve them. By following these four tips, you can start hitting those all-important conversion goals.
