Question: How can you double the sales from your website without spending a single dollar more on advertising or marketing?
Answer: Improving your conversion rate with a few simple changes to your landing pages.
We should start with a basic explanation and understanding of conversion rates. Your website’s “conversion rate” is the percentage of your total visitors that end up buying from you. Conversion rate will depend on a number of different factors, such as what kind of product you are selling, how competitive the industry is, your price point and a variety of other variables. In general, products or services that have lower price points require less “involvement” from the consumer and don’t require much in the way of research or supporting information when people buy them. These items have considerably less risk associated with their purchase, and consequently will have higher conversion rates. Products or services that have higher price points require more “involvement” or research and information gathering from the consumer, have considerably more risk associated with their purchase, and consequently, have much lower conversion rates.
Given that rule of thumb for conversion rates, it’s not hard to see the conversion rate for a song on iTunes at $1.49 being considerably higher than the conversion rate for the purchase of an S-550 Mercedes Benz online.
For most websites, a 1-2% conversion rate is considered just about the industry average for most products and services. For others, a 25% conversion rate is perfectly reasonable because of the type of service or product being offered. Instead of improving conversion rates, most novice website owners focus initially on driving up their total visitor count. The logic goes something like this: If I double my visitor count I could double my sales so that should be the first logical step, right, by getting more visitors? Many new site owners struggle mightily with increasing their overall traffic, especially early in their website’s lifecycle. Building traffic for most site owners takes time and patience to achieve.
What if, instead of focusing on building more traffic, you could double your sales from the traffic of your existing customers? If your conversion rate is now 2%, what if you could lift your conversion rate to 4% and what effect would that have on your total profits? Doubling your conversion rate from 2% to 4% will double your profits. Sound interesting now?
If you think that a conversion rate of 4% is too high, take a look at some of the top online conversion rates from December 2008. The best conversion rate was for ProFlowers.com at 31.1% of sales.
Instead of focusing on generating more traffic, improving the conversion rate on a website from its existing traffic is the surest way to increase sales and profits in the shortest amount of time. There are exceptions to this rule but for sake of our discussion, we’ll assume that your site is not yet attracting a flood of traffic and you’d like to improve your conversion rate. The good news is that there are a few fairly simple ways to easily improve your conversion rate and overall profits with minimal expense.
Let’s take a look at a few quick and easy ways to improve your conversion rates that you can start on immediately: