How a 3% Bump in Conversion Rate Can Massively Impact Bottom-Line
So you’ve got a website for your business. Not having one is simply not OK in 2017; so the investment is seen as a simple cost of doing business.
You’ve heard that there’s massive potential online for business, but you have neither the time nor energy to figure out what kind of opportunity there is for yours.
Even if you did, you’d still have to invest further to realize this opportunity; so it makes sense to stick to the work you know will provide value to your business, and leave your digital priorities for another day.
But what if you knew the exact value your website could be generating for your business, and you knew precisely what you would had to do to achieve it?
If a minor change to the way your website looks could increase the value it generates every month by 200%, would you to make that change?
If a few hours of editing to your on-page copy could pay for the salary of a new employee, would doing something else after lunch be more valuable to your business?
If a $15 000 investment in work like this could increase annual revenue by $250 000, how could you justify not doing it?
I know what you’re thinking. These results sound like pie-in-the-sky, snake-oil-salesman claims. I recognize that you didn’t build a business by being a fool, and that you have very good reasons to doubt my claims and intentions.
This is why I’m going to justify my claims by not only providing demonstrable proof that results like these are possible for your business, but I’m going to tell you how you can achieve them yourself.
So without further ado, lets get started:
A Little Conversion Rate Logic
Lets say your website gets 1000 visitors a month, and converts 2% of those visitors into leads:
X 2% conversion
= 20 leads
We’ll presume you have a predictable close rate of 25%, with about an average revenue of $2 000 per client, per month:
5 jobs a month, at $2 000 each
=$10 000 per month
Presuming the above numbers, your website generates 10 thousand dollars worth of value to your business on a monthly basis. This is by no means insignificant value generation, but what happens when you improve your conversion rate to WebMarketers low-average of 5%?
X 5 % conversion
=50 leads a month
50 leads at 25% close rate
=12.5 jobs per month at $2 000
=$25 000 per month
Keeping everything else the same, a change of only 3% to the rate at which a website converts increased revenue by %150, from $10 000 to $25 000. After a year at this conversion rate, you’d be looking at a $200 000 increase of revenue.
Different Business, Different Numbers. Equal Opportunity
The above example is a hypothetical, so of course it’s numbers don’t apply to every business. For businesses that do bigger jobs, you’re not likely to be looking for clients that average $2 000 per month, nor is a 25% close rate always realistic. The opposite is true for for businesses that deal in smaller jobs, or eCommerce.
What remains true of any business is the tremendous impact that even a small boost in conversion rate has on the bottom line. Businesses that perform big services usually close a smaller percentage of them, but at higher per-client values. Small businesses close more deals, but reap less revenue from each. In either case, more leads helps any business, and even slightly higher conversion rate can produce a significant and reliable boost to lead generation and revenue.
So How Do You Improve Conversion Rate?
If your website has been built with the primary intention of educating your potential clients/customers concerning the details of your business, as most business websites not engineered by digital marketers are, you’re in a fantastic position to make significant improvements to conversion quickly and without much effort. Here’s how:
‘Negative’ Conversion Strategy: Remove/Fix What’s Dragging Your Site Down
To improve your conversion rate, the wisest first step is to simply remove or adjust anything that might be harming it.
‘Conversion killers’ are common features of websites well known to reduce conversions, and you can use our list of the 6 we find most common to analyze your site.
In many cases, it would be unsurprising if fixing just one of these ‘conversion killers’ accounted for a 3% or higher increase to your conversion rate!
- If your website does not include strategic CTA’s (call’s to action), the quick and simple task of editing your content to include them can easily boost conversions from 0% to 3%
- If an overly complex form is causing visitors to bounce, simplifying it and installing Hubspot Marketing Free can not only massively improve conversions, but your close rate as well!
‘Positive’ Conversion Strategy: Tactics to Increase Conversion Rate
Now that you’ve removed the influences that corrupt your conversion rate, you can enjoy the full value of the efforts you take to improve it.
There is an extensive range of strategies and tactics businesses can use to improve website conversions, but presenting them all here would be impractical, and illogical.
The combination of tactics required to build an effective conversion strategy ought to be tailored to the unique needs of your business and website. You could comprehensively educate yourself on every available approach to improve conversions to select the ones best suited to provide you business value, or:
If you’ve taken a look thorough your site to fix prominent conversion killers, and are interested in further improving your conversion rate, you can sign up for a free website evaluation from WebMarketers, and let us point you in the direction of strategies that are best for you!
Conversion Rate Is Not The Whole Story
Improving the rate at which your website converts visitors into leads has tremendous potential to positively impact your businesses bottom line, but it’s not the only improvement set to do so.
For example, there are a range of easily accessible measures you can take to improve site traffic. Coupled with a high conversion rate, these efforts can generate near-immediate R.O.I, and consistently generate value long into the future.
After considering the impact on your bottom line that even a small boost to your conversion rate can generate, bookmark the WebMarketers blog and check back Monday to find out how you can approach the task of boosting traffic and generating even more value online!