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7 Vital Keys For Boosting Conversion Rate

May 23, 2008
It's simply much smarter to sell more to a captured customer right now, than to spend time, money and resources looking for new, cold prospects to sell every time you need to make more sales and money. Finding each new prospect and converting them to paying customers is expensive.

A captured customer is bought and paid for, so to speak. The importance of generating repeat sales, more sales per customer, and getting more money out of each transaction is absolutely key and essential to business and selling success. Selling efficiency rates make or break businesses every day. Here are 7 ways for you to really maximize your marketing investment...

1) FIRST TIME BUYER INCENTIVES

First time buyer discounts are simply a terrific motivator for people to buy. It makes them feel like they're getting something not available to others. It also grants a welcoming feeling to people, and shows them you want them to be your customer. It works especially well if you say at the end of your sales pitch: "Wait a minute, you're a first time customer, right?" "Then you get an extra ten percent off." You should really try this. It works wonders.

Quick Tips and Action Points:

1) It's the perception that counts, and not necessarily how much you give.

Remember, the first sale is not always where the best profits are made. It's much smarter to be striving to "create customers" that come back again and again. Make them feel welcome and valued, and they'll come back.

2) LIMITED TIME OFFER

What's more enticing, a great deal on a product, or a great deal on a product that can only be had within the next 48 hours? Using a time limit creates a sense of urgency. It makes the customer think: "I have to hurry or miss out on this deal." A drawback is the heavy use of this technique by millions of sellers. "Limited time offer!" is printed and said so often, it can be almost invisible. Still, it's better than not using it.

Quick Tips and Action Points:

1) Be sure "limited time" means limited time. Don't just say it. It could cause you real problems later.

2) Give your customers a reason for the limited time. Prices are increasing, limited supply, etc.

3) CONCENTRATE ON HIGH QUALITY PROSPECTS

Like salespeople, not all buyers are created equal in terms of what you're selling. Many companies waste time, energy and expensive marketing budgets on groups of people that have a low likelihood of buying in the first place. Thus, it is vital to carefully select where you're going to be spending your marketing budget, and on which population groups.

Quick Tips and Action Points:

1) This is what marketing research is for. Hire professional help to conduct research if you can afford it, or do your own. Hold focus groups.

2) Buy your mailing lists carefully. Use a list broker you trust, or get lists from similar companies to yours - you can often trade mailing lists.

3) Don't be afraid to do your own market research. Random sampling of 100 people, or so, can provide a lot of enlightening information.

4) DIRECT MAIL STIMULATORS

One company sent out a sales letter in small, brown paper bags folded flat. Times magazine sometimes send a stamp and a small pencil in subscription sales letters. The idea is to get noticed and be remembered. It includes something unexpected or different in your direct mail pieces - a gimmick - and you may boost response or be remembered more easily when you follow up with a phone call.

Quick Tips and Action Points:

1) Make it small, delightful, strange or usable. Fitting in your envelope may be a challenge, but you'll be surprised what you can get in it.

2) Make it relevant or personalise it.

5) EXCLUSIVE CUSTOMERS

Consider creating "Preferred Customer" clubs for your best, high-spending and repeat customers. These people get special deals, discounts and advance notice on sales. They may also get an exclusive membership card. Make sure that they know they are getting things others or not. This produces intense loyalty and spurs repeat sales from your best, paying customers.

Quick Tips and Action Points:

1) This also has the advantage of focusing your energy on high quality customers, while you spend fewer resources on those who don't buy much.

2) "Exclusive" means higher priced. If you are going to grant exclusive status to anyone, they should pay for it.

3) If you issue Preferred Customer membership cards, charge for them. Sign up a thousand customers and you've made money.

6) KEEP IN TOUCH WITH CUSTOMERS

Out of site, out of mind. If you don't keep in regular touch with your customers, they'll forget about you. There are many ways to stay in touch; regular mail, a postcard, an occasional call. The point is to make an effort to keep all warm customers from going cold, or disappearing altogether.

Quick Tips and Action Points:

1) How often you keep in contact depends on your kind of business, number of customers, etc. You need a plan and a policy on this issue that fits your organization.

2) Don't contact only when you want to sell. Why not just call to say hello? Send a birthday card.

3) Say you're calling to tell about an "unannounced sale." That's a bit of flattery few can resist.

7) TRACK SALES CONVERSION RATES

A shopper is not a customer, not until he or she buys. When they buy, they've converted to a customer. Many business owners are happy when they have loads of traffic coming through the door. But that's not the ultimate measure of success. If only 10 or 15 percent are converting to paying customers, that means you're spending a lot of time dealing with time wasters. When you start measuring conversion rates, you set a baseline upon which future goals for improvement can be set.

Quick Tips and Action Points:

1) It requires a policy and procedure to track success rate. Train your employees to start tracking data. Use computerized software programs to help you manage data, and examine trends.

2) Then, set new, higher conversion goals.

So there you have it. Plenty of idea's and tips to improve your conversation rates. And remember, improving a conversion rate from 10% to 20% has the same effect as doubling your entire marketing efforts.

Next, what's better - spending an hour with a customer that spends $100, or spending an hour with a customer that buys $200? Of course, the answer is obvious, but this very simple distinction is central to true business success. If you can make more money on each customer contact, you bolster your profits and vastly increase your potential for success, and beyond!
About the Author
Power Marketing System is an audio and web based marketing program designed to help small to medium enterprises increase their profits and outsell their competition. Explode your business today. Get the FREE audio now. Visit: http://www.powermarketingsystem.co.uk
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