Definition: Conversion rate is the number of leads you get from your website divided by the total number of visitors.
Conversion rate = Number of leads / Number of visitors on your website
Why working with conversion rate is important Conversion rate relates to the cost of acquiring a new customer. If acquiring a new customer is expensive for your company then the value of your company is lower if you can show that acquiring new customers is not so expensive.
Acquisition cost = The money it takes to get a new customer
For a company that primarily gets customers using online marketing this basically means:
Acquisition cost = The total cost of getting traffic to your website / the number of new customers
This really means:
Acquisition cost will decrease if you get more customers without increasing your total budget.
5 easy steps towards a better conversion rate
1) Start by calculating your conversion rate Get the total number of visitors for the last month and the number of customers or leads you got in the same period. Input it into the conversion rate calculator in the
bottom of this article to find your conversion rate. It might be much worse than you think.
2) Review your site from a customer perspective Your site consists of pixels. Every pixel means something – either it increases the chance that the visitor leaves their contact information, it is neutral or it decreases the chance that the visitor leaves their contact information. Try taking a print screen of your front page or just look at it and ask yourself:
- Is it very clear for the visitor what they can get out of leaving their contact information with you? (The clearer message – the more leads)
- Does the site look messy or does it give the visitor a positive feeling (The more messy – the fewer leads)
- How many clicks will it require for the visitor to leave their contact information. (The more clicks – the fewer leads)
3) Consider how you can create value for visitors fast Value for visitors can be different things. When they are visiting your site they probably visit you to get fast information. If you can provide that information in a way that makes it an obvious choice for them to leave their contact information in exchange then you’re pretty close to getting a lead. Here are some ways to give your visitors what they came for in exchange for their contact information:
- Setup a calculator. This is the most efficient tool we know of since it engages the visitors before asking them for their contact information
- Add a newsletter signup form. This promises the user a set of emails. Really interested visitors might want just that
- Add an ebook download form. An ebook is a 5-20 page .pdf file (usually) that the users can get by submitting a form with their contact information
4) Experiment Try making experiments with your website and the content of it. Experiments can be done by doing one of the following things:
- If you think your website is pretty good at converting – then consider using a testing platform like optimizely to optimize it
- If you think your website might need a total redesign to convert better than we believe it’s better to do experiments by setting up completely new landing pages using software like LeadDoubler before changing your corporate website itself. It allows you to experiment more freely and achieve faster results. (Actually we recommend total redesign of your website, but that might not be possible in your company, so you might need to create some comparable results first)
5) Repeat step 1-4 It never ends. In 4 months your website is old and dusty again. You’ve got to stay moving to stay ahead. Basically this means:
- Keep your investments at a level allowing you to invest again in 6 months. Consider prototyping your next bright idea instead of having it developed 110% automated.
- Kill your babies is essential: Even if you paid $$$ for your old corporate website it might be time to throw it away if it doesn’t work. Don’t throw new money after old money