Opinions expressed by Entrepreneur contributors are their own.
There’s no question that conversion rates are important to the success of any business. After all, a company can’t make money if its potential customers aren’t converting into actual paying customers. But what many business owners don’t realize is just how big of an impact hitting your conversion goals can have on your business’s bottom line.
Consider this: If your company has a 1% conversion rate and you’re bringing in $1 million in revenue each month, increasing your conversion rate by just two percentage points — to 3% — means you’ll be bringing in an additional $2 million each month. That’s an extra $24 million per year!
Of course, increasing your conversion rate is easier said than done. But it’s certainly not impossible. Here are a few tips to help you boost those numbers and reach your full revenue potential:
Related: 5 Key Tips to Improve Conversion Rates
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). At any stage in the process, your funnel either loses people or moves them forward to the next stage.
If you’re not regularly performing a funnel analysis, usually called an audit, you could be missing out on revenue that could be a game-changer for your business. Let’s look at a simple evergreen webinar funnel with a “buy now” option for a $1,500 offer as an example. We’re going to keep it super simple and assume you’re sending just one email to your existing list to drive them to the webinar registration page. 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? Do the pages load quickly? Is the copy clear and concise? Is there a strong call to action on each page?
If you answered “no” to any of these questions, it’s time to do some 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.
Related: 5 Tactics to Supercharge Your Website Conversion Rate
3. Segment your email list
When it comes to email marketing, quality is more important than quantity. Sending out a generic message to your entire list is likely to result in few conversions because not every recipient will be interested in what you have to say. 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 list? Start by dividing it into smaller groups based on factors like geography, age, gender, interests, etc. 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 to advancements in technology, this is easier than ever before. There are now numerous tools available that allow you to collect data about each user and then use that information to display content that’s tailored specifically for them.
Related: Why a ‘Personal’ Customer Experience Is Critical to Your Business’ Success
Reaching — and exceeding — your desired conversion rate can have huge implications for your business revenue. If you’re not happy with your current numbers, take heart; there are plenty of things you can do to improve them. By following these four tips, you can start making progress toward reaching those all-important conversion goals.
Read the full article here