Why Conversion Rate Matters
Imagine, for one moment, that you are the proud owner of a small business in Oklahoma City. You have decided to set up shop on one of the busiest intersections in the city, a place where you will have thousands of people walk by your store daily. Surely this means that you will be a success and your business will thrive, right?
Well, yes or no?
Unfortunately, you do not gain profit by people simply walking past your store. Even if they decide to walk in and check out your products, just browsing will not pay your bills. For you to be a success and for your small business to thrive, you need to ensure that those people who are "just browsing" turn into people who are making purchases.
Large and small business owners alike know the importance of making a sale. Whether selling physical products or specific services on a busy street or operating solely online, your success depends on people paying you their money. The term conversion rate is talking about just this. It is the rate at which you convert customers who are just looking to customers who are just buying. And it is possibly the most important rate to your business' success.
What is a Conversion Rate?
For the sake of this article, we will explain everything in the realm of online operations. This means you solely operate out of your home, and customers make their purchases online. The definition does not change from physical storefronts to online websites, just the terminology, and implementation.
Conversion rate is the rate at which total visitors to your online site are converted into buyers, subscribers, and users. This all depends on what you are trying to measure with this metric. This rate is significant to your business and will tell you a ton about the success of your site, profits, and much more.
Why is Your Conversion Rate Important?
Many online businesses will do anything in their power to increase the amount of traffic to their website. They are living in a world that says more traffic means more money. They spend much of their time and effort trying to boost their traffic. This mindset is not terrible, but it is not the mindset you want if maximizing profits is your goal.
Instead, it would be best to focus your efforts on enhancing your conversion rate. Remember, conversion is what brings your business profit, not traffic. Here are a few of the main reasons conversion rate matters the most.
Return on Investment is a ratio between net income and investment expenses. It is a prevalent metric businesses use to measure how well certain investments perform. By boosting your conversion rate, you are turning existing traffic into new customers, users, subscribers, etc. This means that you will not need to invest in any new software, ad campaigns, or other tools to bolster sales by trying to bring in more traffic. Boosting conversion rates will significantly affect your ROI and give you more money in your pocket.
Increased Sales and Success Indicators
Arguably the only reason someone wants to enhance their conversion rate is to make more sales. More sales mean more money to your bottom line. As your business does not continue its operations without sales, focusing on your conversion rate is necessary.
Perhaps one day, your small business will want to grow. This takes money, and some look to new investors to help cover the costs. These potential investors will want to have concrete evidence that your business is doing well and thriving. A reasonable conversion rate will show anyone that you are not just a place for people to browse when bored. This will show them that you have a product or service that people want or need.
While trying to boost your conversion rate, you will likely find yourself inspecting your website to see what is working and what needs to be adjusted. This process will increase your rate and help you fine-tune your website. You could also find that your website is bland, outdated, or impersonal and decide to go with a complete overhaul. The number way to turn traffic into sales is by having a good website that draws traffic closer.
There are a few easy ways that you can improve your website to help increase your conversion rates instantly, including:
Tip 1: Keep it Simple
Some businesses like to try and impress their traffic with technical jargon or awe them with dazzling visuals and features. Your potential customers want a simple, well-explained process and a product they can't live without. You already have the product; now, revamp your site to make it simple. When you are writing your descriptions or process details, write them in a way that you explain to a close friend.
This also includes making the buying process easy to use. Please make sure you offer different payment methods and do not make them fill out a 10-page essay to complete the purchase.
Tip 2: Address Potential Objections
We all know that customers want to talk themselves out of a purchase. Whether it is consciously or subconsciously, they will have objections and concerns. It is easy to combat this in person by reading their body language or having well-thought-out responses. Online, it is slightly more complicated. You can avoid this issue by listing potential objections and displaying your responses clearly.
Tip 3: Build Trust
One of the main reasons people do not buy from online stores is a lack of trust. They want the product and think it is a good deal, but are you a legit business? You can build trust by making it easy to verify information found on your site, easy to contact you directly, and by displaying customer reviews and your responses.
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Maennche Virtual CMO relies on detailed reporting to ensure clients' content marketing strategy remains positive and meaningful to their viewers. We will provide you with updated technology and strategic marketing through systematic metrics like Google Analytics. Our teams work diligently to create engaging content that has the power to expand throughout local and distant communities. With years of experience, our Maennche VCMO will be happy to assist you by creating, managing, and analyzing relevant content that resonates with your brand.
With over two decades of in-the-trenches marketing experience, Matthew Maennche’s views on developing and supporting a successful business are fundamentally different from the norm. As a developer and strategist, Maennche has helped thousands of businesses of all sizes, both domestic and international, take their organizations to the next level.
Matthew also spends time giving back to the local business community as a volunteer, mentor, and leader for the local chapter of SCORE.