In this tutorial, we’re going to run through conversion. And how in fact we can increase your conversion rate of your store. Why it’s important, and how much more money it can make you, just increasing your conversion rate a little bit.
Well, in the beginning when you first launch your store. Obviously you won’t have loads of traffic, unless you’re using pay per click right from the off. And to begin with, we just use best practice really. We’d have a telephone number visible on the website, shopper guard seal up top. Credit card logos. Things to make people trust your website and know that they can get hold of you if there’s a problem. So a contact us link and some good navigation so they can clearly navigate their way around your website.
Once we start to see some good traffic coming in, and we start to get a few sales, then you can start to look at how you can increase your conversion. One of the tools we’ll be using, the main tool, will be Google’s Website Optimizer. And it’s a free tool by Google. And it’s incredible and very useful doing what we call multi variants test. We can test a combination of different things all at once on your web page.
So we might change an image, a title, and even a price all at once. So you get a multitude of different things being tested at the same time, which saves you a long period of time of doing a test. So let’s take a look at some examples of what can happen when you give your website a small increase in conversion rate.
We’re going to take as an example a store conversion rate of 2%. Which is pretty average. That’s pretty much the norm for a non-optimized stored. And it has an average order value of $100. So 20 sales, that’s what you’ll be getting per 1000 visitors, and that’s $2000 in sales. And we’ll say you your store gets 1000 visits a day. That’s $30k per month. And then your monthly sales would be 600 sales at $100, so $60K a month in sales. Giving you an annual figure of 7200 sales at $100 average, giving you an annual sales figure of $720K.
If we can increase the conversion rate of the site by just 10%, which is a pretty small amount. And we’ll be showing you how to do that. And I think to be honest with you with the techniques we’re going to show you in this module as well, we could probably increase it a lot more than that, but we’ll just go with a 10% increase, let’s take a look at the figures now. So you’ll be doing 22 sales per 1000 visitors. So that’s $2200 in sales. Same amount of visitors. And then monthly sales, 660. So straightaway you’re getting an extra 60 sales a month, and that gives you $66K a month. And there you go, you can see the increase in annual sales is a massive $72K.
Now if you combine that with increasing your traffic, that figure will just go up and up and up. So increasing your conversion rate is a very, very good tool to get yourself some extra profit per year. And that’s just as I said, a moderate 10% increase. What are the benefits? Well obviously you get more profit for your company. And it gives you the ability to pay more than your competitors on pay per click. So you can bid more than those guys. And get higher than them. Obviously with your pay per click, you should be doing the other things to be paying less per click. To get a better position by increasing the click through ratio of your ad, making sure you’ve got a quality landing page, making sure that you’ve got a very high quality score. But you can still bid more than your competitors by having more profit.
It leaves your competitors scratching their head how you manage to be on top all the time of pay per click and how you can afford to be top. And it’s because you’re making more profit than they are. So you’ve got more money to spend on advertising. What does that mean then? It means more sales results in buying more from your suppliers. Which means you can start asking them to give you your products at better prices, which again, means more profit.
More money to outsource your tasks and give you a bit of freedom. So things you were doing yourself, you’ve now got this spare money and you know how to do it now, so you can go ahead and get it outsourced. Because you know how to do it, you can explain to another person or another company how you want it done.
So there’s a huge amount of benefit to increasing your conversion rate, and it literally can double your sales if you increase it by enough. So go through module 12, once you’ve got some traffic and conversions to your store. Thoroughly go through the system, and make sure you start to incrementally increase your conversion rates.
