When I ask business owners if they could waive a magic wand and solve their biggest problem with online marketing, then I typically get this answer – “More website traffic.”
More traffic means more exposure to your product or service, and that naturally leads to more sales. It’s completely logical and most marketing consultants, tools, and even the news is focused on where to get the best traffic to your website.
But that doesn’t mean traffic is your best opportunity to generate more sales and revenue. It’s possible you should instead work on increasing your website sales conversion rates.
In this video, I’ll walk you through a process I use with Private Clients to identify the biggest opportunity to boost revenue from your online marketing. And you’ll see if your time and resources would be better spent on improving your sales funnel versus investing in more traffic.
If you liked this video and you want to learn more about how I can personally help you improve your marketing results, then email email@example.com. You’ll receive an email with details about our Marketing Breakthrough program so you can see if it’s a good fit for you.
This is Phil Frost, from Main Street ROI. I put this video together to show you how to identify your biggest opportunities to increase revenue for your online marketing. More specifically, I want to show you, when is your website conversion rate your bigger opportunity? When you should be focused on improving your website conversion rates versus all the other options with online marketing?
The process I’m going to show you is the same process I use for my private clients. It’s based on the 4 pillars of online marketing success. The first one here is traffic. ‘T’ stands for traffic; that’s how many visitors are coming to your website on a monthly basis. The second pillar is conversion rate. All that traffic’s come to your website, how many of those visitors are converting to customers?
The third pillar is value. You’re sending traffic to your website. You’re converting them to customers. Now how much is a customer worth to your business? That’s the customer value. All 3 of these pillars are how you calculate your revenue. You can simply multiply them all up, and that gives you your monthly revenue from your online marketing. (Traffic x Conversion Rate) x Customer Value = Your Revenue.
There’s a fourth pillar there; the fourth pillar is tracking. The only way you’ll know how much traffic you’re getting, the only way you’ll know your conversion rate and customer value, is if you’re tracking all that information. That’s why the fourth pillar is absolutely critical. You need to be tracking this information.
These pillars here; traffic, conversion, and value, are the only ways to increase the revenue from your online marketing. My goal here with this video is to determine which one you should be focused on. I created a previous video to show you, when traffic is your biggest opportunity. This time I want to focus in on, when conversion rate is your biggest opportunity?
There’s 3 criteria here. The first criteria is you want to look at your traffic. I put a checkmark there because that tells you, you have traffic come to your website and you have traffic coming from multiple sources. If you do not have traffic, then traffic should have more priority. If you’re only getting traffic from one source, then you should really prioritize traffic to find another source to diversify. If you do have traffic and it’s coming from multiple sources, then it’s possible that conversion rate may be your biggest opportunity.
The next thing you want to look at is what’s called your EPC. EPC just stands for earnings per click. How much are you earning per click to your website? What’s the value of a visitor to your website? EPC is a critical factor in your online marketing. It’s very easy to calculate: Conversion Rate x Customer Value. It’s the same conversion rate here, and value here. Let’s just use a very basic example.
Let’s say you conversion rate is 1%. You convert 1 customer out of 100 visitors to your website. That’s a pretty good conversion rate. Let’s say your value per customer is $500. That means your EPC is $5. The reason we’re looking at EPC is because you want to know whether or not you can go out and buy traffic with your current EPC. If you can, and you watched my previous video; if you can go out and buy more traffic right now, then that should be your Number 1 priority. You don’t need to increase your customer conversion rates or customer value, you’re all set. Just go out and buy more traffic. If your EPC here, which is $5, if that’s too low to go out and buy more traffic, then it’s possible that conversion rate or your value are your biggest opportunities.
You can check that by going Google’s Keyword Tool; do a couple of searches to see the cost per click of relevant keywords in your industry. If the cost per click is over $5 in this example, then you know you can’t profitably advertise on those keywords. For example, if you go out and find keywords and they cost $7 or they cost $10, you can advertise on those, but you’re going to lose money. You’re going to spend $10 to drive someone to your website, when you know you only make $5 per visitor, so you’re going to lose $5 for every click on an ad. That’s not a good business decision. If you’re in that situation, you need to focus in on either conversion rate or customer value. You’ll know which one by this third criteria: That’s just you cannot currently increase your current customer value.
Maybe you have no opportunity to raise prices, there’s no way to add an up-sell, add in some cross-sells, partner offers, create a customer referral program. Those are all different ways to increase your customer value. It’s possible right now you don’t have an opportunity to do that. If that’s the case and you have multiple sources of traffic, and your EPC is too low to go out and buy more traffic and you can’t increase your customer value, then conversion rate . . . increasing website conversion rate is your biggest opportunity to increase revenue.
That may be going out and improving your sales copyrighting, the copy on your website. Maybe it’s changing the layout of your website to funnel more folks in to a web form. Maybe the call-to-action, making it more prominent on your website so that you get more folks to call you. Maybe it’s even improving your offline aspects of your business, like in-person sales scripts or phone sales scripts. There’s lots of ways to increase your conversion rate. At least now you know that’s where you need to focus.
I hope you got a lot of value out of this process here, of figuring out where you should be focusing in your online marketing, whether it’s more traffic, increasing your customer value, or increasing your conversion rate. At least once you figure out where you need to focus, now you need to dig in and implement and make changes that are going to have an impact on your business.
If you got value out of this and you’d like to work with me personally, where I’ll go through this process with you; I’ll dig into your business, I’ll look at your traffic, your conversion rate, and your customer value, look at your tracking and just make sure everything is set up properly and then identify your biggest opportunities. If that sounds interesting to you, send an email to firstname.lastname@example.org. We have a new program we just started, where I will work with you personally to find your biggest opportunities, and then help you execute on those opportunities.
For example if we find out that conversion rate is your biggest opportunity, I’ll work with you implementing ways to increasing your conversion rates. If traffic is your biggest opportunity, I’ll help find more traffic sources to send more prospects to your website and increase your revenue. It’s possible that customer value is your bigger opportunity, and I’ll work with you to increase your value. Again, if that’s something that sounds interesting, send an email to email@example.com. We’ll follow up with all the details of that program. If it’s a good fit, the next step would be to schedule a one-on-one consultation with me. That’s a free consultation, 30 minutes. I’ll go through this process. I’ll basically create a marketing plan for you, based on your best opportunities. Then if it’s a good fit, if I’m confident I can help you, then we will talk about next steps, and then again, we’ll start executing on your biggest opportunities on a monthly basis.
I hope you got some value out of this video. Again, if this sounds like something you’re interested in, shoot me an email to firstname.lastname@example.org. I look forward to speaking with you soon. Thanks.