Conversion Rate Pimps and Flying Squirrels!
STOP talking about your conversion rates ...
... They're meaningless!
I've been here for a short while now. Even released a WSO which was a fun experience.
So, now I think it's time I offend someone. Some of my initial posts did that, and I didn't want you thinking that I'm too nice (Wouldn't want that now would we?)
If your copywriter (or marketer) boasts amazing conversion rates such as 30% or 45% smack them on the head and tell them to go bounce a ball or something!
(On the other hand if your copywriter or marketer is talking ROI or revenue earned per dollar spent, shut up, open your ears and listen very carefully).
In the internet marketing field most people have been pimping conversions as a selling feature for way too long. Conversion to a freebie (is so bloody easy) gets people on to a list which you can market to theoretically, but they may or may not be the best ROI in terms of time spent.
If you are trying to sell a product at a certain price point where you want to weed out the bottom of the barrel, you can just increase the entry point. Instead of selling a 7 dollar report, sell a $47 report.
You'll get a lot less takers (perhaps even a fraction), but you'll get better quality customers who will be willing to buy more $47 thingies from you.
Ok, so let's see
You send a 1000 prospects a $7 report offer and 20% buy = $1400
You send a different 1000 prospects a $47 report offer and only 3% buy = $1410
Looks pretty similar doesn't it.
You send a 1000 prospects a $997 course offer and only 2 people buy which is 0.20% (a fifth of 1%) = $1994
Yeah, yeah ... I hear you ... more paying customers upfront on the $7, but think lifetime customer value. Who do you think has more lifetime value to you? The $7 report buyer or the $997 course buyer?
There is a law of diminishing return at play as well because you only want to alienate those at the bottom, because there may be a big chunk of the $47 buyers who will buy the $997 (However, from the $7 group you will find only a small fraction and it probably won't be worth your time, effort or money).
You will have to know your market quite well to understand where you want to draw the line.
Obviously, I'm not talking about having a dismal conversion rate like 0.2%, but it's so much more important to look at your ROI or Earnings Per Click or Earnings Per Dollar Spent as a real metric.
2 Things to focus on
- ROI
- Lifetime Customer Value
Remember you're in business to make money and ...
Happy customers make good friends!
Over and Out!
Sanjay
PS: Oh yeah ... About them flying squirrels. They really glide -> Flying squirrel - Wikipedia, the free encyclopedia
PPS: Apologies for the sucky math, but the scotch was really good!
PPPS: Take the above with a grain of salt. It's all theory. There are people who make millions selling a $7 front-end product (or so they say). I don't know them personally.
PPPPS: Enough Already!
... They're meaningless!
I've been here for a short while now. Even released a WSO which was a fun experience.
So, now I think it's time I offend someone. Some of my initial posts did that, and I didn't want you thinking that I'm too nice (Wouldn't want that now would we?)
If your copywriter (or marketer) boasts amazing conversion rates such as 30% or 45% smack them on the head and tell them to go bounce a ball or something!
(On the other hand if your copywriter or marketer is talking ROI or revenue earned per dollar spent, shut up, open your ears and listen very carefully).
In the internet marketing field most people have been pimping conversions as a selling feature for way too long. Conversion to a freebie (is so bloody easy) gets people on to a list which you can market to theoretically, but they may or may not be the best ROI in terms of time spent.
If you are trying to sell a product at a certain price point where you want to weed out the bottom of the barrel, you can just increase the entry point. Instead of selling a 7 dollar report, sell a $47 report.
You'll get a lot less takers (perhaps even a fraction), but you'll get better quality customers who will be willing to buy more $47 thingies from you.
Ok, so let's see
You send a 1000 prospects a $7 report offer and 20% buy = $1400
You send a different 1000 prospects a $47 report offer and only 3% buy = $1410
Looks pretty similar doesn't it.
You send a 1000 prospects a $997 course offer and only 2 people buy which is 0.20% (a fifth of 1%) = $1994
Yeah, yeah ... I hear you ... more paying customers upfront on the $7, but think lifetime customer value. Who do you think has more lifetime value to you? The $7 report buyer or the $997 course buyer?
There is a law of diminishing return at play as well because you only want to alienate those at the bottom, because there may be a big chunk of the $47 buyers who will buy the $997 (However, from the $7 group you will find only a small fraction and it probably won't be worth your time, effort or money).
You will have to know your market quite well to understand where you want to draw the line.
Obviously, I'm not talking about having a dismal conversion rate like 0.2%, but it's so much more important to look at your ROI or Earnings Per Click or Earnings Per Dollar Spent as a real metric.
2 Things to focus on
- ROI
- Lifetime Customer Value
Remember you're in business to make money and ...
Happy customers make good friends!
Over and Out!
Sanjay
PS: Oh yeah ... About them flying squirrels. They really glide -> Flying squirrel - Wikipedia, the free encyclopedia
PPS: Apologies for the sucky math, but the scotch was really good!
PPPS: Take the above with a grain of salt. It's all theory. There are people who make millions selling a $7 front-end product (or so they say). I don't know them personally.
PPPPS: Enough Already!