Boost your revenue without growing your audience

Photo courtesy of Morguefile user Dodgerton Skillhause

Photo courtesy of Morguefile user Dodgerton Skillhause

Most marketing is focused on generating original viewers to look at your product or service offering. That approach should be secondary to a more foundational approach that will assist you in maximizing close percentages, lowering customer acquisition costs, and boosting profits without a huge, outbound marketing initiative.

More traffic is not the answer for the majority of businesses trying to make it online. I’ve worked
with dozens of businesses who had plenty of traffic, but just not enough sales to keep the lights on. If they were a brick-and-mortar store, we would say they had a salesperson problem. So why is it we often overlook that same diagnosis when it comes to businesses who are trying to attract new customers online?

There are two key strategies that should be incorporated before you ever think about growing your business’ impression numbers.

First, we need to look at conversion rate optimization. If your business is bringing in 25,000+ visitors per month, but is barely covering running costs, you have to assume you either have the wrong audience or a bad buyer’s experience. If you can be sure your audience is the correct one by checking your bounce rate (and a few other key metrics), then one would have to assume that you are not providing your visitors with the proper experience to encourage the close.

This could be a poorly constructed shopping cart, a wrongly worded call to action graphic, or even an illogical navigation layout. The goal is to make sure that every component of your buyers’ journey is strategically developed to encourage the highest conversion possible. Doubling your conversion rate from 1.2 percent to 2.4 percent means a 100 percent increase in revenue without any increase in your traffic numbers whatsoever.

Secondly, we need to assume that not all visitors are ready to buy immediately. But properly engaged, they may be ready to buy a week from now. Failing to engage people who don’t purchase on their first visit can heavily impact your potential bottom line. Many consumers do extensive research prior to purchasing and may visit your site four, six or even a dozen times prior to handing over their credit card information.

Setting up a sales and marketing automation system on your site can help you reclaim a massive number of prospective buyers from getting lost in your marketplace. Many consumers are willing to hand over their email address or SMS contact information in exchange for information that can help them make an informed decision. With their permission, you can continue to engage the consumer and let them know why you are the best solution for their specific need.

Placing a bandage on your problem will only help for so long. Keep in mind, doubling your traffic will often double your acquisition costs. Doubling your conversion rate will divide it in half. Invest in marketing infrastructure that complements your audience’s needs first and the revenue will follow.

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Guest bloggers for the TDS Business Blog.

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