4 Tips to Increase Your Conversion Rates and Reach Your Full Revenue Potential
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There is no doubt that conversion rates are crucial to any business’ success. A company can’t make any money if its potential customers don’t convert into paying customers. Many business owners don’t realize how important it is to reach your conversion goals.
Consider this: If you have a 1% conversion ratio and your monthly revenue is $1 million, increasing your conversion rate to 3% will bring in $2 million more each month. That’s an extra $24 million per year! Obviously, it’s not easy to increase your conversion rate. It’s not impossible, but it’s possible. Here are a few tips to help you boost those numbers and reach your full revenue potential:
1. Perform regular funnel analysis
Funnels can be really simple (ad, sales page, delivery email) or incredibly complex (several ads leading to segmented landing pages leading to a sales call leading to … well, you get the picture). your funnel can either lose people or move them to the next stage. If you don’t perform a funnel analysis (also known as an audit), you could be missing revenue that could make a big difference in your business. Let’s look at a simple evergreen webinar funnel with a “buy now” option for a $1,500 offer as an example. Let’s keep it simple. Let’s assume that you are sending one email to your existing subscribers to drive them to the webinar registration site. Your funnel looks like this:
Email: converting at 50%
Registration page: 15%
Webinar: 20% watch rate
Order conversions: 0. 67%
With the conversion rates above, you’ll bring in $1,500 or one sale.
Your email is converting really well, so we don’t need to do anything with that, but the registration page? Not doing so hot. We want that number to be 25% or higher, so we’re going to optimize the registration page.
This might mean changing up the copy, design, images — even the offer itself — until we hit our goal of a 25% conversion rate on the registration page. With all other things being equal, that increase in conversion rate on the registration page alone nets you another sale, bringing your revenue for this funnel up to $3,000.
By working through each step in your funnel this way, you could go from bringing in $1,500 to $28,500 — just by hitting the minimum conversion rate at 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 up to snuff. Is your site easy to navigate? Are the pages loading quickly? Is the copy clear? Is there a clear call to action on each page.
If you answered “no” or more of these questions, then it’s time for a website soul-searching. Making even small changes — like adding testimonials or enhancing your calls to action — can make a big difference in terms of conversion rates.
3. Segment your email list
When it comes to email marketing, quality is more important than quantity. A generic message sent to all your recipients is likely to result only in a few conversions. Not every recipient will be interested. Segmenting your list enables you to send more targeted, relevant messages that are more likely to lead to conversions. Not sure how to segment your email list? You can start by breaking it down based on factors such as geography, gender, interests, and so forth. Then craft different messages for each group.
4. Personalize the user experience
In today’s competitive market, simply having a website isn’t enough — you need to go above and beyond to stand out from the crowd. One way to do that is by personalizing the user experience for each visitor to your site.
Thanks for technological advances, this is now possible. Many tools are available to help you collect data about users and display content that is tailored to them.
Reaching — and exceeding — your desired conversion rate can have huge implications for your business revenue. There are many things you can do to improve your current numbers. By following these four tips, you can start making progress toward reaching those all-important conversion goals.
The author of 5 books, 3 of which are New York Times bestsellers. I’ve been published in more than 100 newspapers and magazines and am a frequent commentator on NPR.