Wouldn’t it be nice if you could predict your business’s financial success?
Well one simple rule to follow is to always know your keys numbers and one of them is a ‘magic number’.
Increase sales by up to 16% and save marketing dollars
That’s possible simply by tracking a ‘magic number’ – your conversion rate. It’s ‘magic’ because it can help determine your whole sales and marketing strategy specifically, your sales and forecasts no matter what your business.
The conversion rate is the number of conversions divided by the total number of visitors. For example, if your Shopify Store receives 200 visitors in a month and has 50 sales, the conversion rate would be 50 divided by 200, or 25%. A conversion can refer to any desired action that you want the user to take but an area you should be tracking your conversion rates is in marketing, particularly whenever a new marketing campaign is launched!
The amount of success you get from a marketing campaign must be measured otherwise you face the risk of wasting money and targeting the wrong customer or focusing on the wrong message. Your conversion rates need to be tracked for each marketing strategy launched and then compared to see which is more profitable. There is real truth and success in the saying ‘what you can measure you can manage!’
When we look at measuring the effectiveness of any marketing campaign, your conversion rate is the number of inquiries you receive versus the number of sales made, expressed most frequently as a percentage. Now before we look into this further, think about your own business for a moment – what’s your conversion rate?
Check your records or simply take a guess right now and keep that figure in mind as you read on.
You can’t double 75%
When most business people are asked what they think their conversion rate is the majority will say 75% to 80%. Did you think that for your own business too? Interestingly, when the numbers are accurately tracked in those businesses, most owners find, to their obvious surprise, that the figure is often as low as 20% to 25%.
Given that’s the case it becomes obvious that generating leads is not the greatest opportunity for your business – converting more of those leads into sales has far more potential!
This is a fantastic opportunity for your business.
You see, you can’t double 75% or 80%.
The only way to grow your sales in this case is to generate more inquiries, which is often expensive. On the other hand, of course you can double 20% to 25%.
And you can do it without spending any more on marketing.
Instead, you learn to focus on internal issues like sales training, special offers, better follow up and more – these can (and do!) make all the difference.
And the survey said
Better yet, it has been shown statistically that just by tracking the numbers closely, conversion rates can increase by up to 16%.
Consider that for a moment – without any other change to the sales process or any other expense, sales could increase by 16%.
Imagine what that could do for your business?
The reason this statistic tends to hold true is that by nature people want to do a good job, when the numbers reflect less than that most make a concerted effort to see them improve.
You must really understand your customers’ problems before offering a solution. Remember, ‘prescription without diagnosis is malpractice’.
Got a question about your business? Please get in touch with us.
