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A website that is inefficient at persuading visitors to take the action you want them to take is like a leaky bucket - traffic fills the bucket like water and then leaks out the holes.
It only makes sense that you want to plug as many holes of the holes as possible.
So why is it that the average website generally converts no more than 1.8% of its traffic?
And how is it that the average traditional retail store converts in excess of 30%, but this is rarely achieved online?
The key is to recognise that today's consumers expect a level of personal communication tailored to their needs and wants - relevance and context are their top priorities.
In a retail store, for example, the shop assistant has the opportunity to customise and adapt their discussion with the prospective consumer, as they learn more about that consumers needs. Online, it is nowhere near as easy to adapt on the fly, yet it is even more critical to be relevant.
Creating this relevance is no small task but the results are worth the investment. Alkemi offers a number of services aimed at helping websites increase the percentage of traffic they turn into customers just as they helped Mortgage Choice double their online conversion rate.
Contact Alkemi today to find out how we can boost your website's conversion or read on to learn more about the impact and necessity of conversion rate enhancement in the modern online arena.
The Internet is an environment where the consumer has total control. Every individual actively makes a choice to come to you. They arrive, task in mind, prepared to participate. While they remain engaged in your persuasive entity they agree to continue participating in the persuasive exchange with you. It is critical however to remember that the Internet is voluntary, participatory, and goal-oriented. People who come to you are interested in you. They are also completely in control of what they will or will not agree to experience. They decide where they will go, how they will engage, what they will spend, whether they will spend, and where they will look for their information.
Search Engines out there are fighting to be the most relevant for good reason. According to Hitwise Google currently dominates approximately 75% of all online searches conducted here in Australia. Why? They deliver the highest degree of relevance in their search results. Relevance is in the heart of their customers; relevant results delight their customers.
Relevance is the single most important factor in getting your prospects to take action. Relevant to their current need or want, relevance to their current motives, relevance to who they are as people and how they like to communicate.
Improving your Conversion Rate and your websites ability to persuade users to take action is by far the most profitable strategy you can implement online. Contact us and find out how your site can increase its conversion rate
Why Increase your Conversion Rate?
- When you have higher sales from the same traffic, your profits go up.
- When you have more customers from the same traffic, your customer
acquisition cost goes down.
- When more of your customers are delighted, come back and tell others, that repeat and referral business has no additional marketing expenses at all.
- When you have more repeat business, your customer lifetime value goes up.
Example: Investing in Improving your Conversion Rate
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Scenario 1
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Scenario 2
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Scenario 3
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Scenario 4
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$ Invested in PPC Advertising
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$20,000
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$20,000
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$20,000
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$20,000
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Average Cost per Click
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$0.40
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$0.40
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$0.40
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$0.40
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Clicks (Website Visitors) Delivered
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50,000
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50,000
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50,000
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50,000
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Conversion Rate
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1.5%
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2.0%
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2.5%
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3.0%
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Number of Sales
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750
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1,000
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1,250
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1,500
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Average Sale Value
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$150
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$150
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$150
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$150
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Total Campaign Revenue
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$112,500
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$150,000
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$187,500
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$225,000
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Customer Acquisition Cost
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$26.66
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$20.00
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$16.00
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$13.33
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Campaign Gross Profit
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$92,500
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$130,000
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$167,500
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$205,000
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Customer Satisfaction (Word of
Mouth flow on effect)
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Example: Investing in Buying More Traffic in Search Marketing
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Scenario 1
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Scenario 2
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Scenario 3
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Scenario 4
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$ Invested in PPC Advertising
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$20,000
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$26,666
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$33,333
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$40,000
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Average Cost per Click
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$0.40
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$0.40
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$0.40
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$0.40
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Clicks (Website Visitors) Delivered
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50,000
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66,666
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83,333
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100,000
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Conversion Rate
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1.5%
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1.5%
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1.5%
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1.5%
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Number of Sales
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750
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1,000
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1,250
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1,500
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Average Sale Value
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$150
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$150
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$150
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$150
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Total Campaign Revenue
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$112,500
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$150,000
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$187,500
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$225,000
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Customer Acquisition Cost
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$26.66
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$26.66
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$26.66
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$26.66
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Campaign Gross Profit
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$92,500
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$123,334
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$154,500
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$185,000
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Customer Satisfaction (Word of
Mouth flow on effect)
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Observations:
- By increasing your Conversion Rate you drop your customer acquisition cost forever. This will not only have a significant effect on results from PPC traffic, but also all other website marketing initiatives. By dropping your acquisition cost you also give your company to ability to be more competitive in bidding for PPC keywords. In the past year, we've noticed increases as high as 400 percent in the average position-one bid price in some online marketplaces. In some cases, campaigns that started in late November 2003, with average bids of $0.50, are now at $1.50. It's only a matter of time before you will not be able to financially compete in search engine marketing if you are inefficient at converting visitors once they arrive at your website.
- To continue to boost sales by investing more in PPC you will have to continue to invest an additional $20,000 budget (as seen in Scenario 4) for the long term. While increasing your conversion rate should be an ongoing priority, we offer Conversion Assessments that are a once off investment, with prices starting at $4,450 plus GST. Hear how other Alkemi clients have doubled their conversion rates with this service.
- When comparing both Scenario 4's above the effect of focusing some resources on Conversion Enhancement rather than just PPC Marketing alone means you would benefit from increased Campaign Gross Profit by 11%.
- Word-of-Mouth (and Customer Satisfaction) trumps all. Most savvy marketers realise that word-of-mouth is their most powerful and cost effective source of business. Learn how to deliver relevance and you will delight the customer, delight the customer and you'll satisfy and convert more online visitors, convert more online visitors who have felt great about their experience on your website and your word-of-mouth will grow like never before.
So if Google has built a company purely based on the promise of relevance, that is now worth in excess of US$126 billion, why do most websites continue to invest increasing sums of money in PPC, and other forms of marketing to drive traffic to their website, without recognising and exploiting the importance of relevance themselves?
Through our partnership with New York based Future Now Inc, Alkemi International offers a range of services including Future Now's successful Conversion Assessment System (CAS) to help enhance your Conversion Rate and your websites ability to persuade uses to take action.
We'd love to meet you and discuss how to increase your websites conversion rate.
Hear how many of our clients have in many case literally doubled their online sales and/or enquiries from working with Alkemi.
Watch Client Case Study Video Now »
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Practical Strategies, Tips and Industry Secrets Newsletter. |
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 Alkemi's New York based business partners, Future Now, have just released their latest book on the subject of conversion. Find out more about this wonderful insight into personas and how they help conversion.
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Our Search Marketing Staff are all Google Qualified Individuals.
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