Understanding Why Conversion Rate Is So Important

Graham Waite

Oct '23 in General Discussion ✅

Wasn't sure if this is classed as value bomb or just regular information

@Mariah Coz

but hopefully you approve.

Ever wondered what business metrics could reveal to help you sell more of your services to clients?

Decipher the maths behind your monthly leads and visitors. It's not as complex as it looks. For instance, let's take a hypothetical scenario:

You get a monthly footfall of 5,000 visitors. Your product's market value is $1000. (Just for easy calculations) The average website conversion rate usually hinges around 1.5-2%.

Now, if your website follows this trend, the monthly data should look something like this:

Visitor conversion at 2%: 100 visits Sales tallying up to $100,000 Assuming a profit of 20% after costs, before tax, you rake in $20,000

This simple analysis shows that you can spend up to your gross profit margin to acquire a client and not incur any losses.

But, let's imagine if you could double your conversion rate.

Most of us are savvy marketers and know the importance of landing pages, CTA's, and all that stuff but the odd tweak here and there can easily double our conversion rate in most cases.

Let's consider we boost it to just a 4% conversion rate: Visitor conversion jumps to 4%: 200 visits Sales spike up to $200,000 Profit, post-costs, swells to $40,000 Simple equation, right?

Throw is a good CRM and follow-up system and doubling your conversion rate shouldn't be beyond any of us, should it?

One thing I will say is don't get too hung up on the tech once you figure out the changes you can always hire someone to do all the geeky stuff for you.

Remember once you capture a client once provided you continue to deliver value you can keep them for life.

If it's cool with you guys I have a couple of more things that explain why this can work for you if it is OK to post them here?

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