Conversion Ratios
Your conversion ratio is the percentage of visitors who take the action you would like them to take.
Example: Make one sale for every 100 site visitors and your conversion ratio would be 1%. Most Internet companies have a conversion ratios of between 1 and 2 percent. Increase your conversion ratio to 2% and you have doubled your success rate or income.
There are companies on the Internet with conversion ratios of more than 10%. The average "brick and mortar" retail conversion ratio is 48%. Study the big producers carefully, you can learn a lot.
Some elements to consider for improved conversion ratios are:
- Targeted Audience - Not everybody is an ideal prospect for your business. Many businesses attempt to attract large numbers of visitors without regard to whether they'll really buy. The problem in many cases is that the target audience has not been properly defined. In other cases, the business hasn't learned how to attract the right audience, even though they have identified their audience properly. The bottom line is - you'll get a higher conversion ratio if you target narrowly.
- Your Product or Service - Your product or service must offer benefits to your visitors? Is it priced fairly? If you don't have what they need and want, they will not buy. Your product's perceived value determines your conversion ratio.
- Copy/Content - prospects need to be convinced to buy. If you don't know how to communicate your product's benefits, it doesn't matter how good it is. The prospect won't know it, and thus will not purchase from you. The World Wide Web gives you plenty of flexibility to provide in-depth information (plus branding if you want). Use that flexibility to your advantage for a higher conversion ratio.
- Branding - Direct marketing programs will receive 1 % conversion ratios when mailed to new audiences and 7% or more when mailed to audiences that already know the company. This factor gives well-known companies an advantage. Smaller companies can achieve similar results by concentrating efforts on prospects who already know them. Branding substantially increases your conversion ratio.
We can help you improve your conversion ratios.