Put Your Marketing Money Where The Value Is: Return Conversions
Written by eSources on Monday, May 11th, 2009 in Ezines and Newsletters.
If you are a savvy online retailer, you know what a conversion rate is, right? Well, just in case, let’s all be clear that the conversion rate is the number of web users who actually purchase a product divided by the number of viewers who click on the site.
Most marketers spend a good deal of their time on three primary strategies.
1. Getting as much traffic onto the site as possible so that your 4% conversion rate will yield much more business. For example, if you get 1000 hits per month at a 4% conversion rate, you will experience 40 purchases. If you increase traffic to 2000 hits per month at the same conversion rate, there will be 80 purchases.
2. Increasing the conversion rate so that more of the viewers who reach your site actually make a purchase. In the above example, if your conversion rate on 1000 hits moves from 4% to 6%, you will experience 60 purchases instead of 40 purchases with no additional outlay of advertising or SEO money.
3. Increase the value of the conversion rate by increasing the average buy per purchase. For example, if you experience 40 purchases per month at an average purchase value of 100 dollar, you take in 4,000 dollar monthly. If you can entice 50% of the purchasers to buy more with a 10% discount on the second item purchased, you can increase your revenue to 5,800 dollars (4,000 dollar on first purchase, 90% of 2,000 dollar on the second purchase).
You can maximize your impact by spending more time focusing on the return conversion rate. A return conversion is a prospect who visits your site, leaves without converting, and ultimately returns to your site to convert. Return conversions include new prospects that leave and return as well as existing customers who return to purchase again.
In general, the conversion rate for most online retailers is 2% … and that’s a hard won conversion rate. When you specifically target both people who have visited your site but not purchased and people who have visited your site and purchased, the conversion rate can increase by up to four times the standard conversion rate.
Developing a long term campaign that targets apparent tire kickers and initial customers, including special offers and targeted advertising, is an optimal strategy today, especially since buyers are increasingly researching product and retailer reputation before committing to a purchase.
Source wholesale dropshippers, drop ship and drop shipping, suppliers, UK wholesalers & dropshippers from the Web’s largest verified wholesale directory. Browse by country: USA & American Wholesalers, Italy Wholesale.
Popularity: unranked [?]



