Focussing on increasing your conversion rates is more important than ever with increased competition, ever increasing ad costs and the constant need to make the business more profitable.
Here are 10 reasons why focussing on increasing your conversion rate should be your number one priority…
1. More customers for FREE – If you make an improvement that is successful you will generate more customers than you did yesterday meaning that you got a whole bunch more customers without spending a penny on advertising to get them – I don’t know about you but I like that (a lot)
2. More advertising options available – Optimising conversions generates a positive feedback loop – not only do you get more profit & more customers but because you are paying less to acquire a customer you can look at advertising that before has been out of reach such as TV advertising which is notoriously expensive.
This will push you further ahead of the competition.
3. You can pay more for traffic – Buying traffic and turning it into customers at a reasonable return is key to having a successful online business, by increasing your conversions you can drive down the Cost Per Acquisition meaning that you can now pay more to acquire a customer.
4. The early bird catches the worm – Other wise known as the First mover advantage, the fact is not many of your competition are focussing on conversion optimisation at the moment so you have the advantage to really get in there first and dominate the market before they do, over the coming years CRO is going to be huge – it’s most neglected but most important part of online marketing.
5. Your Customers will like you more – Focussing on improving your customers experience of doing business with you not only will you get more of them to become customers but you will turn more of them into evangelists of your company – this is know as the Net promoter effect.
6. The slight edge – Often it doesn’t take a huge amount of effort over and above what everyone else is doing to be the best. Small incremental increases can compound over time to give you a huge advantage.
This is most obvious in sports, the best sportsmen the ones that take home 95% of the royalties and get paid massively more than everyone else often just train a bit harder, focus on their fitness a bit more, drink less, sleep better than the rest.
7. Best way to incrementally increase profit – Many costs are fixed in a business and there isn’t a lot you can do to reduce them, your inventory or cost to deliver your service is pretty constant.
Often your spend on advertising is the same if you spend more on advertising you often don’t make that much more profit due to the cost of delivering your product or service.
But if you focus on incrementally increasing conversion rates you see the result directly in your profit, this to me is as good a reason as any to obsess over optimising.
8. Your business can cope with problems better – If you are more profitable the next time there is an economic meltdown your business will be in a better position to deal with it (unlike your competition that aren’t focussing on improvements – yet)
9. Reduce stress on support staff – With a higher percentage of your sales coming from online due to higher conversions this will lead to reduced phone calls and emails to your support staff, giving you the option of deploying them into other areas or recruiting less (again giving more profit).
10. Happier business owner and or investors – Effective conversion optimisation can be a pressure relief valve removing the stress out of the business, no longer will you lay in bed staring at the ceiling wondering what is going to hit you next.
Hopefully you are now chomping at the bit to start optimising your business, if you do this right you will develop what Warren Buffet calls a “moat” around the business’s he invests in – an insurmountable obstacle between you and the competition.
What should you do next?
Contact us for a free conversion analysis of your website please contact us.