It’s incredibly important to always work on increasing your conversion rate (the % of visitors who act on your desired goal). What if 10%, 25%, 50% or 90% of the people who visit your website actually purchased, subscribed, registered or whatever your goal is for them instead of the 2% Internet wide average? How much greater would your sales be, your cash flow, your profitability? What if you could dramatically increase your conversion rate just by testing and changing a few things?
And here’s the great thing:
Just a little increase in your conversion rate can mean a huge increase in your sales and cash flow.
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$100- average sale amount
$500- lifetime value of each customer (total purchases while they remain a customer)
If your current conversion rate (the number of visitors who purchase ÷ the total number of visitors) is:
2% (2 out of 100 visitors)
$200- average sales
$1000- total lifetime value
5% (5 out of 100 visitors)
$500- average sale
$2500- total lifetime value
10% (10 out of 100 visitors)
$1000- average sales
$5000- total lifetime value
You can see that by just converting a few more visitors, you’re getting a huge increase in total revenue. I stopped with a 10% conversion rate, but nothing says that you can’t test and tweak until you get that conversion rate higher. What about 20%, 50% or more? All of a sudden, the numbers become huge and all without a lot of extra effort or expense on your part.
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You won’t be able to achieve a 100% conversion rate, because a certain of the portion of your visitors arrive at your website accidentally and really didn’t mean to land there. But even if that were to represent as much as 10 % of the total, that still leaves a possible 90% conversion rate.
Digital marketing enthusiast and industry professional in Digital technologies, Technology News, Mobile phones, software, gadgets with vast experience in the tech industry, I have a keen interest in technology, News breaking.
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