Today, we’re going to share our thoughts on conversion rates.
Let’s start by looking at what a conversion rate is…
In its most basic form, it is the percentage of leads that are converted to paying customers.
However, the term is also used for measuring when potential customers take certain actions like sign up for something like a newsletter or free download, or take specific actions on a website.
Why is it important?
Because it is a good way of measuring whether your marketing is successful.
The more you are able to attract the right kind of customers – the ones you want to work with, and for whom you can offer most value – the higher your conversion rate is likely to be. In other words, many of the enquiries you get are likely to turn into paying customers.
Now there are a number of factors to consider here…
The higher the cost of the product or service you are providing, the longer the decision making process can take. And, as a result, the more times you may have to reach out before the decision to buy is made.
Sometimes, this can result in a lower conversion rate, but don’t always assume that’s the case. If you have made a compelling argument for what you offer, or more to the point, how the customer will benefit they will be keen to buy.
If you sell to large companies, there are very often a number of people involved in the buying process, this can impact on your conversion rate, as you may be unable to influence everyone who is involved in the decision.
You cannot expect to convert everyone from the very first contact they have with you. It is said that it takes between 7 and 21 “touches” to convert someone into a paying customer. Of course, that is an average, it can be shorter, but indeed it can be longer too.
We’ve known people who have had subscribers to their newsletter or blog for over two years, before they have decided the time is right and they are ready to become customer. Sometimes, these people don’t even reach out, they just quietly read and absorb what you have to say.
Which brings us neatly on to the last point for today, the quality of your marketing…
If you are struggling to convert many of your enquiries, it points back to your messages, and how you are delivering them. You are either attracting the wrong kind of enquiries, or you are not demonstrating the value of working with you.
If you would like an audit of your current marketing,
please get in touch with us on 01256 83 11 10.
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