How to improve your conversion rate

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

Calculate your own conversion rate in the bottom of this article

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

Conversion rate calculator

Survival of the fittest marketing animal

One of the more surprising lessons from the theory of the “Survival of the fittest” is the fact that it is more important to be good at adapting than it is to the biggest, fastest or strongest. If you’re a fast adapter you’re able to adapt quickly to changing environment – surviving new threads and taking the advantage of new possibilities. In marketing the theory applies as it does in biology…

Let’s play a game… In a given market (a world) a group of different companies (species) co-exists. If one company launches a campaign or a new service it will have an advantage for a period until the effect wears off or the other companies have adapted (copied?) to the new situation. The success of company is in such a market determined by how effectively it provides it’s services and how well and fast it adapts to changes in the market.

The problem The problem when moving the market to the internet is that the number of services and campaigns launched in a given market have grown explosively. In the good old days a company could live for decades doing the exact same thing. Now it has to re-invent every service every 5 year!

The loosers The species that dies out in a changing environment like this are the dinosaurs. The biggest animals with the slowest adaption ability.

The winner The winner in an environment that changes like this is the company that is best at adapting it’s services and launching the most revolutionary campaigns – over and over.

How your company can become adaptive If you seek to become adaptive we suggest that you seek to explore the way you develop and launch new services and react to others doing just that in your market. Imagine a situation where a new player enters the market by launching a campaign eating customers right out of your cash-cow market… What do you do?

  • A: Calls your board of directors, discusses what to do for a while. Determines to do someting, ask some outside consultants or agency to come up with some brilliant idea and perhaps decide to launch a campaign after a few months.
  • B: Designs a new service or campaign by prototyping and launching it fast to minimize the head start of your new opponent. Knowing that not all services can be launched equally fast give the above a thought.

  • How fast are you?

  • Did you prepare yourself by purchasing adaptive marketing components that at least makes that part easy

  • Did you consider taking the first move – removing any incentives a newcomer would have for entering the market?

How LeadDoubler makes you adaptive With LeadDoubler prototyping marketing automation machines right into production is easy breezy. It is done extremely fast and takes away the reason for considering new campaigns for a long time before just doing something. Take our marketing automation test if you want to know more about your ability to thrive in todays rapidly changing market.  

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How to reach your sales target?

Are you on target?

If you’re in doubt on whether you’ll reach your sales target you’re not alone. Here’s a calculator that enables you to calculate the number of leads you need to reach your sales target.

  • Input the number of sales you need per year
  • Get the number of leads you need per week or day