- What Is Conversion Marketing?
- What Is a Lead?
- Valuing a Lead
- Benefits of Knowing a Lead Value
- Leveraging Lead Value to Your Advantage
- What Is a Conversion
- Defining Conversion Rate
- The Importance of Conversion Rates
- Ways to Increase Conversion Rates
- Tracking Your Conversion Rates
- 10 Tools to Boost Your Conversion Rates
You have set up your marketing strategy to drive more traffic to your website and get the leads you need to improve sales. All you need is to get those leads converted into paying customers, increasing your revenue and profits. This is called conversion, and the goal of most marketing plans is to end up with a high conversion rate for your marketing efforts. To help reach the conversion rates you desire, you will need to understand what conversions are and how you can promote greater conversion success.
What Is Conversion Marketing?
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Conversion marketing is marketing designed to increase conversions to a site. Different tactics can be used in a conversion marketing strategy, such as providing offers for customers with an abandoned cart or prompting visitors to signup for specials and sales. Ultimately, all of the tools in a conversion marketing strategy will have the same end goal, to turn a visitor into a customer. However, the manner of conversion may differ depending on the particulars of your marketing plan.
What is a Lead?
To understand the sales conversion rate, you must first understand the process of customer conversion. You will always start with a lead, a business, or a person who shows an interest in purchasing your products or services. Leads can encompass a wide range of visitors to your site, so it is crucial to know who to identify and separate as your leads to focus your marketing efforts better.
If a lead is hot, it is often referred to as a sales-qualified lead, which means they are ready to buy. A hot lead is likely passed on to the sales force team so they can close it. Cold leads are at the beginning of the buyer’s journey and they may be performing research or deciding if your product or service is right for them. These are the leads that will need significantly more nurturing before the conversion process can happen.
Valuing a Lead
It can be beneficial to attach value to each of your leads. If you use a sale as your conversion metric, you can easily value the lead using your average sale cost. If your product costs $99, one lead that turns into a sale would be worth $99 to you. Every lead will not result in conversion, but let’s say that out of every five leads, at least one places an order.
Using this information, you can easily calculate your conversion rate. So your conversion rate formula would be (1/5 * 100). This would result in an overall conversion rate of 20 percent. If one conversion provides you with $99, you can predict that you will make $99 off every five leads.
To determine the lead’s value, you will need to take the value of a sale and divide it by the number of leads. So for the above example, it would be $99/5 = $19.80. Each lead to you would be worth $19.80.
Benefits of Knowing a Lead Value
There are benefits to knowing the value of a lead. When you know your lead’s value, you can determine how many leads you will need to procure monthly and quarterly to meet your sales goals. This will also help you budget better when it comes to advertising costs.
Calculating the number of conversions needed will be as simple as dividing your desired revenue by your lead value. For the above example with a lead value of $99, say your company wants to make at least $2,000 in revenue each month. $2,000/$19.80 = 101 conversions per month.
You can also calculate the needed leads to achieve the desired profit. Let’s say you make a profit of $50 for every $99 product you sell. One sale will equal $50, and each lead will have a value of $10 profit. This means to earn $2,000 of profit, you will need at least 200 leads.
By performing these calculations and tracking these metrics, you can make better-informed decisions, not only about what type of marketing to use, but what your marketing budget should be.
Leveraging Lead Value to Your Advantage
It is important to note that not all sales nor all leads will be equal. Different items will take more leads to get conversions, and various traffic sources may also report differing conversion numbers. For example, traffic targeting local leads is more likely to produce more qualified leads than other forms of traffic for the more generalized public.
Don’t worry if your conversion rates vary from campaign to campaign and traffic source to traffic source. These differences can be beneficial when developing a marketing strategy, preparing a content campaign, or determining where to put more of the budget into it.
What is a Conversion?
Conversions can be measured in different ways. They are a defined action that you set, which marks the transition from a lead to a customer. Popular conversion measures include:
- A completed purchase
- A follow-up call for more information
- Signing up for more information or correspondence
- Completing a contact form
- Sharing on social media
- Downloading a video
- Or even visiting certain pages for a specified length of time.
Understanding the sales conversion rate is vital for any business to know where their customers are coming from. This will allow them to fine-tune their marketing plan and identify what is working and what isn’t.
Defining Conversion Rate
To understand your sales funnels’ true performance, you will need to understand your sales pipeline conversion rates. These rates will help you to optimize your marketing plan and also track your return on investment. Your conversion rate will be tied to your defined method of confirming conversion. Once a visitor on your site completes your desired goal, they will count as a conversion and add to your overall conversion rate.
To create a more streamlined campaign and gauge ROI between marketing channels, most marketers will look at their traffic sources. Common forms of traffic include:
- Organic Search: Visitors who have come to a site through a search engine.
- Direct: Visitors who went to the website directly through your web address.
- Social: Visitors who arrived at your site by clicking through on social media.
- Email: Visitors who accessed your site through an email link.
- Referral: Visitors who connected with your site from another website.
- Paid: Visitors who have landed on your site via a paid promotion.
Knowing how visitors arrived at your site can give you insight into which marketing channel performs best. This can help you focus more on those methods or find ways to strengthen other methods and get them up to similar rates of the better-performing ones.
The Importance of Conversion Rates
Conversion rates provide you with a picture as to how your marketing strategy and various channels are performing. These rates also help to provide you with insight on how to improve your profit. No matter how strong your conversion rates are, there is always the chance that they will go higher, and when you improve your conversion rates, you will improve your profit.
For example, say you spend $2,000 on advertising to draw in 2,000 leads. Your conversion rate is 10 percent, which means you can expect 200 customers from those advertising dollars. If you find a way to increase your conversion to even 11 percent, you will have 20 more customers without spending any more of the budget. Even the increasing conversion by one percent has improved your profit.
Ways to Increase Conversion Rates
Knowing the importance of maximizing your conversion rates is the first step. Next, you will need to find ways to increase those conversion rates to drive profits higher. The strategies you use will depend on whether you are looking to increase online marketing or offline marketing conversion rates. Let’s start with online marketing. The main way to increase your conversions online is by developing and promoting a strong brand, which can be done through:
- Testimonials and Reviews: Case studies, client testimonials, and favorable reviews can build trust with clients and drive the conversion process.
- Marks of Credibility: Since trust is an important part of the conversion process, any way you can mark your website to appear credible will promote better customer interaction. This could be having clear contact information, Better Business Bureau seals, or other security features.
- Compelling Headlines: The first thing that visitors read, and sometimes the only thing they will read if they don’t draw you in, are headlines. Engaging headlines can draw in customers to interact more with your website.
Offline conversion tactics are similar to online ones because they are designed to build trust and draw customers in to learn more about a product or service. Some specific ways to improve offline conversion rates include:
- Publishing Testimonials: Showing pictures of happy customers on your printed marketing material will lend credibility to your products and services.
- Engaging the Customer: A sales representative should not simply call when it is time to close a deal. For larger purchases, the decision-making process can be more difficult, involve more people, and require consistent nurturing through the decision process.
- Closing Questions: Before you ask a customer to make that final purchase, feel them out for what may be holding them back from making the decision. If it’s the price, ask them if a discounted price would be something they could work into their budget.
Tracking Your Conversion Rates
One part of the marketing and planning process is determining which metrics you will track, linked to conversion. The metrics you use may differ depending on the product or service you are selling, but some primary metrics are vital to the conversion process.
- Bounce Rate: Bounce rate indicates the number of people that view only one page on your site. This metric is important as a high rate could indicate several things, such as poor content, a difficult interface, or even a problem with the page loading times. If you have a high rate, you will need to find ways to improve your site and make it more user-friendly and engaging.
- Pages Per Visit: This metric will give you insight into how leads are interacting with your site, such as how many pages they visit, the amount of time they spend on each, and if they interact through commenting. This will help you find what content and information are working well, promoting interactions, and which ones need additional work.
- Source of Traffic: A key metric to determining if a marketing plan is working and how your conversions occur is the sources that are driving traffic to your site. By Knowing where your visitors are coming from, you know where to strengthen your plan and what type of channels are worth capitalizing on.
- Form Abandonment Rate: If you realize that your form is being abandoned more than it is filled out, then it is likely time to revamp it. Forms are a great way to convert leads to customers, so having a user-friendly one is vital.
- New Visitor: Metrics about new users will provide key insights into the first impression and first-time visitor behavior on your site. You will see if the content drives them to engage more, if the usability allows them to navigate to more pages, or if you need to make changes to give a better first impression.
- Repeat Visitor: While it is important to understand how new visitors interact with your site, it is also essential to see how to repeat visitors. The repeat users are the most likely to convert, so you will want to see where they are engaging and where the site may be losing them before the conversion process.
These and other conversion metrics should be tracked regularly, whether that is daily, weekly, or even monthly. The more vigilant you remain about monitoring the metrics, the more effectively you can correct possible problems. Since conversion is so vital to sales and profits, it is crucial that you address any issues as promptly as possible.
10 Tools to Boost Your Conversion Rates
There are various tools you can implement on your site, in conjunction with your site, or as a supplement to your online presence to help give your conversion rates a boost. Some of the most effective tools to bump up your conversion rates include:
Website surveys are a great way to get qualitative feedback from your visitors so they can provide you with insights on what is and is not working for them. The key to an effective survey is making sure that the questions are blunt and direct, but provide the feedback you need and that the survey is delivered at the right time. Once obtained, the information from these surveys can help you to optimize your conversion efforts to be more efficient.
Customer Calls and Support
Another tool that can help you better understand who your customer is and how your website helps them through their journey, is by their calls and support requests. First, by better identifying your target customer, you can refine your buyer persona. You can also discover some of the pain points your customers may be experiencing and develop solutions to address those issues as promptly as possible.
Session recordings can also provide you with qualitative data about how a visitor behaves once they are on your website. These recordings will track a user’s journey through your website. By following a customer through the process, you will be able to identify friction points and bumps in their experience affecting conversion rates.
Since forms are a vital component for any company’s conversion measurements, these analytics will show you how long it takes your customers to fill out the form, parts they ignore or refill, or sections that seem to take them longer. This will help you identify any possible problems that make the form more difficult to fill out or information that customers may be more hesitant to give.
Creating a visual example of your visitor’s interaction can better show you areas where their attention is being drawn and areas that they are avoiding. One of the most effective visual aids for this purpose is heat maps. By combing multiple users’ data into heat maps, you can see the areas that visitors are focusing on and engaging with and areas that may need more work.
If your metrics and visitor feedback show that your site may be more difficult to navigate, then focusing on improving the flow and ease of navigation is essential. Customers perform their research and purchase on the internet because of the ease and convenience that ir provides them. If it becomes difficult to find what they are looking for to complete an easy online purchase, they will likely abandon the site and search elsewhere for a platform that is more user-friendly.
Content and information on your website’s pages should be clear, engaging, and provide value to the visitor. Everything should quickly grab the visitor’s attention and provide them with solutions or information that sets them apart from their competitors. If your target market is highly specified, the content and information should be tailored to their possible pain points and solutions to alleviate them. After reviewing the metrics, revamp underperforming content to promote longer engagement and more page views.
If it can fit in with your website content, videos are a great way to engage an audience. They can provide visitors with a lot of information in a short amount of time while providing them with a first-hand view of how the product or service works. Videos not only have a higher engagement level than other forms of content, but they also have a higher chance of being shared through social media channels and networking platforms that receive high traffic.
Optimize Your Landing Pages
Landing pages, by design, are there to receive and convert segments of your target audience. How effectively they perform these tasks directly depends on how well they are optimized. Successfully optimizing these pages can have a significant impact on your overall conversion rates. First, test your landing pages to make sure they are pushing the visitor toward a call to action and make sure to get rid of anything on the page that might be distracting. Look at everything from the color scheme, to the headlines, to the navigation to make sure that everything works together.
Look at Page Load Times
All your effort will be wasted if your visitor becomes frustrated with a slow website. The ability of the internet to deliver information fast is both a blessing and a curse. Since everything is now so easily accessible, their attention span when scrolling online is minimal. If they find themselves waiting for a page to load or running into constant errors, they are likely to abandon the website altogether and move on, even if they are interested. Improve the page load times on your website by optimizing images, using external hosting for larger files, and enabling caching.
By focusing on conversion marketing, you will not only be drawing the leads you need to your site to make sales, you will also be finding out what you need to do to assist those leads in the conversion process. Conversion rates can help you focus your marketing efforts and budget and allow you to understand the correlation between leads and profit. Through a series of metrics, you can better understand your visitor’s conversion process and ways that you can improve their experience moving the conversion process forward.