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If you are involved in online marketing and employ an agency to design your campaigns or landing page, the most important statistic you should pay attention to is your conversion rate. Simply put, a conversion rate tells you how many of your online visitors can be turned into subscribers and enter your sales funnel.
There are different things you can measure when you calculate your conversion rate: opt-in rates, sales, and returning customers. No matter what your focus is, you can never have a conversion rate that is too high. Below you will find out why increasing your conversion rates is the best way to improve your business profitability.
Engage With Customers
Once you have managed to increase your conversion rates by targeting the right people, you can engage with them on different levels. You will be able to connect with them through social media and reduce the cost of your advertising. This means that you don’t have to spend too much on finding more customers; instead, you can find out as much as possible about your target market by building positive relationships with your buyers and perhaps have fewer, more targeted advertisements.
A higher conversion rate will make it easier for you or the marketing agency to measure the results of different media channels. Once you find out where your customers are coming from and which social media sites, blog posts, and videos result in the best conversion rates, you can allocate a larger proportion of your marketing budget to focus on the best performing medium. You will not only learn about your customers but also your brand’s unique strengths that you can cash in on.
The Benefits of Loyal Customers
Once you have higher conversion rates, you can focus on the buyers, which means your campaigns will be tailored to their needs. It is always cheaper to keep your existing customers happier than it is to get new ones. This is the main reason why quality should matter more than quantity in your content management and online promotion campaigns.
With higher conversion rates, you will be able to spend more money on connecting with your existing customers on an individual level and be able to ask them to support your brand. It is found that businesses with more repeat customers generally achieve higher profits. From requesting reviews and feedback to asking them to share your social media posts or sign up for your app, you can focus on what really helps you maximize the benefits of your online marketing campaigns and get your business to the next level.
Higher Brand Value Equals More Profits
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When you have a higher brand value, you can gradually increase your prices. Once you have the reputation and some loyal fans, you can increase your company’s profitability. When you are on the map and your customers know the value you are offering, you don’t have to engage in a price war with your competition. A better conversion rate and a pool of loyal customers will help you achieve more, with less effort and investment.
Improving your conversion rates can be a game changer for your business. You can increase your reputation by being able to connect with potential and current customers and provide them with the content and information they are looking for. Once you’ve turned them into fans, they will want to share their new find with their friends and share your business. The more people who mention your brand, the higher its value and search engine rankings will be, so you can spend less on paid ads.
Improved Customer Value
One of the ways business owners can work smarter and not harder is to maximize customer value. If you are able to take advantage of every opportunity to market to your customers, you will be able to get more profits with less investment. Once they are on your buyers list, you can keep them engaged by offering exclusive discounts and turn them into repeat customers, maximizing their spending and making additional sales for increased profits.
With a well-designed marketing campaign, you’ll have the opportunity to get featured in local groups and even social media pages by your loyal customers. You will not have to spend any money on acquiring the new customers — your loyal fans will do the job for free. Another great benefit of engaging with your audience through online forums and communities, such as local groups where people are searching for recommendations, is that you can find out more about your target market without spending big bucks on market research.
As you will get a higher conversion rate through engaging content and marketing, you will have to spend less of your budget on paid ads. The cost of obtaining a new customer will be reduced, and this means that you can carry on perfecting your campaign, testing your landing pages, and further improving your promotional strategy. When you lower your spending on paid advertisement, you can make magic happen when it comes to developing positive brand relationships. You can spend more on customer management systems, improving your business infrastructure, and improving customer satisfaction. Happy customers are likely to spend more online or in your physical store.
Know Your Target Audience
Image via Flickr by theogeo
As most analytics software will give you a detailed graph or chart of where your visitors are coming from and which posts get the most engagement and the best conversion rates, you can learn a lot about your ideal customer, or buyer persona. You can focus on the type of visitor who is more likely to become a customer and use your budget more efficiently.
Improving your website, social media campaign, or content marketing strategy can deliver several benefits for your brand. You can get a better return on investment and more customers for your dollars. Use your marketing budget smarter so you can improve your profits every day. The above tips will help you focus on what really matters: the quality of customer relationships.