Website Conversion Rates – Why It Is Important and How Your Stats Compare

I recently met with the e-commerce team from a CPG/Manufacturing company. We had a great conversation about driving sales online and it got my marketing juices flowing. Recently, I wrote an article about measuring ROI for marketing and it included discussing Website Conversion Rates…

By monitoring your conversion rates, you’ll know how well you’ve been capitalizing on the traffic coming to your site. You can monitor several different types of conversion rates, including:

  • Visitor-to-Lead Conversion Rate: the percentage of visitors who become leads through regular site visits, requesting a price quote, downloading content or repeatedly attending webinars
  • Lead-to-Customer Conversion Rate: the percentage of leads who become customers
  • Visitor-to-Customer Conversion Rate: the percentage of visitors who become customers

Tracking each of these conversion rates is like giving your marketing funnel a checkup. You’ll see where you’re doing well (such as converting visitors into leads) and aspects of the website that need improvement. Most important, you are measuring metrics that ultimately can impact revenue generation.

You can track the percentage of visitors who arrived at your site through organic search and completed a desired conversion action, such as filling out a contact form, requesting a price quote or registering to receive the company’s enewsletter.

But you also should dig deeper into your web analytics to track conversion rates by:

  • Specific keyword or search phrases
  • Unique landing pages
  • Referring URLs

Tracking these metrics helps you fine tune your SEO strategy. For example, you may discover certain search phrases that don’t deliver tons of unique visitors, but that have a higher than average conversion rate. Or, you may find that high traffic from a common search term isn’t translating into a good conversion rate. So, you are not only looking at quantity, but quality.

After my conversation with the team, I decided to expand on this topic by providing ways to dive deeper. There is a lot of useful information published that can help you make sense of how your specific data may compare to others – both inside your industry and out.

First, it occurred to me conversion rates still may be a bit foreign to some. I found this waaaay oversimplified explanation that gave me a chuckle…

“Well … it’s the number of people who did what you wanted them to do … divided by the total number of people you tried to get to do that thing.”

Perhaps a little basic in the explanation, but you certainly get the point.

Leadpages went on to provide in their article, What Is a Good Conversion Rate? (And When Can I Stop Worrying About Mine?), helpful examples of the basics. They also made it clear, “it depends” when it comes to what you are counting as a conversion (and what industry you are in, and what you are trying to convert, etc.).

Speaking of segmenting by industry, Continue reading

Tips on Moving the Customer Through the Sales Funnel

Taking a potential customer and converting them to a loyal advocate for life is the goal of most organizations. While I have covered customer loyalty and advocacy in previous blogs, I recently was asked for suggestions on how to move a potential customer down the sales funnel to make that oh-so-important first sale.

Here are a few tips on how to shorten the sales cycle…

A typical sales funnel may look like this:

 

 

 

 

 

 

 

 

 

As your prospect moves through the sales cycle, your goals will change as they meet each stage in the decision process:

  1. Awareness – Perhaps your product or service is well known. Maybe it is not. In either case, the goal is to make sure your service/product is top-of-mind when they eventually have a need
  2. Consideration – Engage with those who are now aware your service/product exists
  3. Preference – Educate those who are now committed to making a purchase but haven’t decided where yet
  4. Purchase – Make the sale!

I recommend you think of moving your prospect through the sales funnel as a series of small conversions. Each conversion leads to the next and will eventually result in a sale. To be successful, it will be critical to define what each stage looks like for your particular company, develop a step-by-step plan to communicate with the prospect for each stage, and to track and analyze the results along the way.

Awareness

I have written blogs on each of the following topics if you care to do further reading. However, I am going to assume we are all in agreement these are some of the more successful ways to generate awareness and drive traffic to your website:

Engage

Once your prospects are aware of your service/products, it is time to engage them. To do this, you will need to get their email address so you can communicate directly with them. Not so simple, you say? Here are some great tips on how to use “lead magnets” to build your database with opt-in subscribers:

101 Lead Magnet Ideas For Every Stage Of Your Marketing Funnel

16 Ridiculously Simple Ways To Get More Email Subscribers in Less than 5 Minutes

Keep in mind, the prospect is not only volunteering their contact information, but they are also volunteering what interests them, based on what offer they responded to when prompted. It is important to keep their interest in mind when reaching out, so to not be considered spam and provide the best chance to engage them.

Tips to consider when engaging your prospects: Continue reading