A 7 Step Program To Generating More Sales - Part One
All business owners want to generate additional sales.
There are really 4 keys ways to do this:
- Increased web site traffic
- Increasing conversion from hits to sales
- Repeat sales with existing customers
- Increase your price
All four of these methods are practical ways that you can increase your sales and your profits. Even if embark on just one method you can make a difference without working harder or spending more money to do so.
Which one will help you do this most effectively?
Without exposing the answer now, keep on reading and see if you can work it out from the hints.
Step 1: The 99 That Got Away
As an example - you sell a product for $50 a unit and have a goal to generate $2000 profit this month.
Internet marketing studies suggest that the average ecommerce website converts 1-2% of their visitors into customers.
1 website visitor out of a possible 100 = 1% conversion. By using promotional campaigns, you pay $30 to obtain those 100 website visitors. So suddenly your $50 sale less $30 marketing costs = a $20 profit.
Therefore to achieve your goal of $2000 profit, you will need to generate 100 sales and because only 1 of 100 visitors to your site will make a purchase this means you need to get 10,000 visitors to your site this month.
Now that's hard work!
Look at it from another perspective. what can you do with the 99 visitors that didn't make a purchase?
Remember you're spending $30 to drive 100 visitors to your site. Now you acquire two customers from those visitors.
$100 in sales -$30 = $70 in profits. That's a 350% increase in profits without spending more money or working harder.
Now suddenly you can achieve your profit goal with only 2450 visitors, rather than 10,000 with a 1% conversion.
If you haven't worked out the number one way to increase your sales yet the answer is number 2 - increase conversion from hits to sales.
What about the other 3 ways to increase sales?
You will need to generate website traffic but if your visitors don't convert into sales then you are in trouble.
Repeat customers will generate repeat sales but you need to have developed a client base for this to work well.
You will at some stages need to increase your price but be careful as some products can only bare so much of a price increase.
Increasing your conversion rate between visitors and sales is the optimum way to increase sales and hence your profits. Imagine if you were able to increase your conversion rate from 1% to 2% to 3% or even 10%?
Next article we will show you how to you increase your conversion rate.
Tina Valiedi is PR Director and editor at MPStrategies Firm a company providing super-targeted web traffic to online businesses. For more articles on advertising visit: http://www.mpstrategiesfirm.com today.