Without awareness and traffic, your website will never be able to convert customers. On the other hand, most businesses put too much emphasis on generating traffic, and invest insufficiently in optimising their websites for conversion.
According to research from Eisenberg Holdings, for every $92 that the average company spends to attract people, it spends just $1 to convert them. This explains the abysmal conversion rates many companies suffer from (with rates typically under 3.5 percent, according to Monetate Ecommerce Quarterly’s data). It also explains why generating revenue and staying profitable are among the most pressing challenges that businesses face today.
Thankfully, your business can be made more profitable. Ample research has been conducted on what it takes to take your company out of the red and into the black.
Related: The Sales That Really Count
Here are five research-backed principles guaranteed to hike your revenue.
1. Smart, personalised email marketing
Research shows that email is the most effective of all marketing channels – both inbound and outbound. Data from the Direct Marketing Association shows that you can expect an ROI of $38 from every $1 spent on email marketing. And research by Monetate, which analysed over 500 million shopping experiences, found that email (at 3.19 percent) beats search (1.95 percent) and social media (0.71 percent), combined, when it comes to driving sales.
If you haven’t invested in segmented or triggered email-marketing already, it’s time to start, since doing so could double your revenue. Once you’ve gotten started with email, take things a step further by fully personalising your messages.
According to Marketing Sherpa, simply personalising your emails can boost your sales by up to 208 percent over using the general “batch-and-blast” email approach.
2. Up-selling and cross-selling
Extensive research has shown that up-selling and cross-selling are two of the most effective ways to boost revenue in a business.
At one point, Amazon attributed up to 35 percent of its revenue to cross-selling, and JetBlue was able to generate $190 million in additional revenue in 2014 simply by up-selling its users. According to social ecommerce platform Viral Style, simply enabling upsells can “automatically increase your average profit by an additional 15 to 25 percent.”
The two challenges involved with upsells and cross-sells are relevance and timing. Make sure that your content-management system is capable of associating related products together. That way, when you offer an upgrade or a multi-item bundle, that move will make sense, given your site visitors’ browsing patterns.
Also, to ensure that your offer doesn’t turn off a prospect who would otherwise become a converted customer, consider setting it to appear as part of the checkout experience instead of as a suggestion on a product page.
3. Increase your trust factor
Trust plays a major role in the average customer’s decision whether or not to buy from you; and unless you can effectively optimise and increase your trust factor, your business will basically be leaving money on the table.
While there are many ways to amplify your company’s impression of trustworthiness – and, ultimately, every tip in this article will help you do that in some way – here are some of the most effective ways:
Enable SSL: Enabling SSL (Secure Sockets Layer security technology) has been observed as massively boosting sales; when people see the green padlock and “HTTPS” in their browser’s address bar, they’re more likely to buy from you.
Use security seals: Research shows that displaying security seals on your website is the foremost way to get people to trust and buy from you. Simply embedding a familiar security seal will go a long way to increase your trust factor and maximise sales.
Make an address and phone number visible: Available data shows that having a visible phone number and physical address on your website can boost sales by up to 5 percent.
Have a social media presence: Even if you’re a brick and mortar store, you’ll lose out on a lot of business if you don’t have a diverse digital footprint. In addition to your website, you should maintain an active, attentive presence on each of the major social networks.
4. Opt for a faster website
How much do you think each one-second delay in site loading time costs ecommerce giant Amazon? That’s a massive $1.6 billion annually. Yes, every single year! And it’s not just Amazon we’re talking about. It’s been estimated that a one-second delay in any site’s load time will result in a 7 percent loss in conversions.
People simply don’t have the patience to watch web pages slowly render in today’s “everything on-demand” climate. Slow websites cost the U.S. ecommerce industry as a whole around $500 billion annually.
Simply making your website faster can – and will – boost sales dramatically. According to data from Gomez, which monitored real user data from 33 major retailers, decreasing page load time from eight to two seconds increases conversion rates by a whopping 74 percent.
5. Leverage the authority of social proof
The “Milgram Experiments” of 1963 were designed by psychologists at Yale to observe the extent to which humans are willing to go when it comes to obeying authority figures. Surprisingly, the studies found that approximately 60 percent of people will remain obedient even to the point of inflicting significant harm on others.
Thankfully, converting customers with your website involves harming no one, and it’s relatively easy to use the principle of human obedience to amplify your site’s sense of authority and improve your revenues.
The key here to boosting sales lies in using this psychological phenomenon as a form of social proof: Simply having someone respected as an authority in your niche endorse your product can double or triple sales. Just ask Weight Watchers.
When Oprah Winfrey announced that she had invested in the company, a form of authority endorsement, its stock prices shot up by 110 percent overnight. If you are struggling to convert sales and generate revenue, consider sponsoring a relevant industry authority – or influencer – to endorse your brand.
As the studies referenced here show, increasing your business revenue by 30 percent, 50 percent, 100 percent or even more is certainly within reach. Leverage the above principles in your business, and watch your revenue and profit skyrocket.
This article was originally posted here on Entrepreneur.com.
3 Strategies For Closing Sales Without Picking Up The Phone
Cold calls generate follow-up conversations only 10 percent of the time, and lead to in-person meetings less than 2 percent of the time. Use these three strategies to skip the cold calling and get straight to decision-makers today.
Anyone who’s been on the receiving end of a sales cold call, which is virtually everyone with a phone number, can attest to how annoying these unsolicited sales attempts often are. Even if you stay on the line long enough to hear what the caller is selling, your first question probably isn’t, “Can you please tell me more?”
It’s more like, “How did you get my number?” Or maybe, “Can you please remove me from your calling list?”
Yet cold calling has been a widely used sales tactic for decades, and is often considered a rite of passage for veteran salespeople. But it’s high time for that to change. There are simply more efficient and effective ways to sell products in the digital age.
Time not well spent
Cold calls generate follow-up conversations only 10 percent of the time, according to a Harvard Business Review study. The other 90 percent of the time, they’re most likely alienating potential leads, even the ones who may actually benefit from the product or service being sold.
Moreover, not even 2 percent of sales calls lead to an in-person meeting, according to HubSpot research. That means you have to spend a lot of time on the phone before you get the chance to make an in-person pitch.
All of that time spent researching prospects, refining sales scripts and training your sales team to pitch your product on the phone, drives up your cost of customer acquisition immensely. Not surprisingly, HubSpot also reports that cold calls cost roughly 60 percent more per lead than acquisition methods like email marketing and social selling.
Cold calling is an aggressive approach, and today’s consumers don’t want to be pressured into making a purchase, they want to buy into your product and your company on their own terms. The internet has changed how consumers make buying decisions, and buyers now want to be in charge of the purchasing process.
Instead of interrupting customers with annoying sales calls, rely on the following three guidelines to build a better sales strategy:
1Start With Inbound Marketing
The guiding principle behind any successful inbound marketing program is to provide value first and sell second.
If customers understand the value that your company is offering, they’ll be far more likely to do business with you.
HubSpot helped pioneer this approach, and now companies like Sapper Consulting are taking it to the next level where they combine precise targeting and unique, creative email content with the insights — generated by big data to help companies get B2B leads and secure high-quality meetings with decision makers.
A successful inbound marketing campaign is based on a specifically defined audience or a set of customer personas. Companies like HubSpot and Sapper help people target content directly to your personas and establish a voice that resonates with them. According to a study by marketing company Captora, 61 percent of consumers are more likely to make a purchase from companies that use custom content to reach them. Clearly, knowing your audience is key.
2Don’t be afraid of public speaking
The popularity of TED Talks and similar forums is evidence of the fact that people want to hear what experts have to say, either in person or over video. But even if you don’t consider yourself an expert yet, public speaking can help you achieve that status.
By speaking at industry-relevant meetings and events, you can start developing brand recognition and a unique perspective on topics related to your business. Plus, you can repurpose speeches as content to use in your future inbound marketing efforts.
A well-delivered speech can be one of the most effective ways to generate sales because you’ll often have prospects in the room when you’re speaking. Grab their attention during your speech, and you’ll likely be handing out business cards afterward.
3Keep an eye on ROI
Content marketing is only effective if you actually use your content. In 2013, SiriusDecisions reported that somewhere between 60 and 70 percent of B2B content goes completely unused. That’s a problem. It shows that many companies are essentially throwing away time and money and calling it content marketing.
Instead of wasting precious resources on your content marketing efforts, clearly define the business objective you hope to achieve with each piece of content you create — beyond page views and click-through rates.
Work to understand the ROI you’re getting out of each piece of content. Quantify your customers’ pain points and create a sales strategy around the solution to those pain points.
Thought leadership and content campaigns will also help you engage with consumers and get a better sense of how your content is contributing to sales. Then, repurpose high-performing content and update content that becomes dated to continue attracting new leads.
Likewise, you should keep content that demonstrates your company’s capabilities and other valuable knowledge gated so that you’re not giving away intellectual property — such as industry analysis, buying guides and RFP templates — for free.
Cold calling is a time-honored practice, and it’s likely not going away anytime soon.
But with these tactics, you’ll have much more success acquiring new customers and gain a big advantage over competitors still glued to their phones.
This article was originally posted here on Entrepreneur.com.
When Your Market Is Declining Fish Where The Fish Are
Shift your focus from barren and ‘over fished’ markets to customers who are looking for the right solutions.
Just as some anglers forlornly cast their lines into fished-out waters, some companies and sales people continue to focus on markets where nobody is buying any more. Sales and profitability decline and business owners blame downgrades, corruption and labour issues, while their real problem is chasing non-existent sales.
Many sectors in the economy have declined, and suppliers to those sectors will face reduced sales and increased competition. The poultry, steel and mining industries have experienced sharp reductions and face serious challenges. The automotive and manufacturing sectors have experienced reduced volumes, cost cutting and retrenchments. If your primary target market is in any similar sector, and you continue to operate as if nothing has changed, you are taking very high risks.
In some instances, the decline of the target market stems from an event like the horrific massacre at Marikana and the changes that brought to the mining industry. Then you know you need to react, but most change is gradual, and some entrepreneurs may not notice, or shut their eyes to the bad news.
Others cling to the hope that this decline is temporary, and do nothing. We all love our comfort zones and find many excuses to stay there, and so we sink with the declining market.
Making the right change
Once you have appreciated the problems with your current markets, look for similar markets that are stable or growing. For example, if you sell mining supplies, the construction industry may offer good prospects. Be creative; think how you can use your expertise to supplement declining markets by entering more successful ones.
Focus on high growth business sectors. Perhaps health and fitness, education, green energy or IT services could provide opportunities. Where could you leverage your technology, source of supply and sales processes to enter growing markets?
Look for success stories, there are many, including those profiled in this publication. It is clearly preferable to sell to a company growing rapidly than to one clinging to the edge of the cliff by its fingernails. If you sell business to business, examine the state of your customer’s customer.
If your customer is operating in a declining market, you will follow them downhill unless you take action. Find ways to use your products and services to make them more competitive, to halt their slide and grow at the expense of their competitors.
This is a good time to look deeper into the real needs of your existing customers. While we are selling well, we assume that we are satisfying customer needs appropriately. Are we really doing that? Are there other products or services that would be valuable to our customers? Find out, and then provide solutions.
Get out of your comfort zone
It’s easy to say that you should move out of your comfort zone and switch your efforts to more lucrative sectors, but less easy to do. Institutional knowledge, systems, databases, credit records, sales processes and products are all geared to the once-successful industries.
Instead of throwing away all of this know-how, it makes sense to adapt the systems and information to new markets in a gradual transition. Start new initiatives by withdrawing resources from the old and using working processes and skills to open new markets.
You are likely to need a core of your operations for your existing markets and customers, but your focus should be on the new initiatives.
Your sales teams may need additional training to work in new areas. They must learn to understand the customers and their needs and adapt to their terminology and business practices.
Continual retention of sales people is a good idea even without change; it is highly desirable if you want to enter new markets successfully. Train all staff who will be a part of that drive, so your whole company becomes capable of delivering great products and even better service to new customers.
Successfully enter new markets
- Which sectors are similar to yours?
- How can your current solutions be repackaged for different uses?
- How can your solutions help customers to be more competitive?
Attention: The New Consumer Currency
Spendthrift customers are unwilling to part with their attention absent the CX factor.
Spendthrift customers are unwilling to part with their attention absent the CX factor.
In the Customer Experience War, brands need to either minimise customers’ attention spend or make the spend worthwhile, or both. Expectations are high.
Less is more
Customers can get what they want through voice recognition now. Busyness equals status.
Brands need to eliminate the journey between here and there. Think groceries direct to your fridge.
Painful attention suckers must go. Old problem like a laptop ban on flights? Qatar airways will loan you a free laptop during your flight.
Eliminating certain customer experiences is the way forward for brands. Assure the customer that any negative socio-economic impacts of your product are minimal so they don’t need to do the research.
On the flipside, help customers multitask to maximize their attention spend at one point in time. Audiobooks are winning out on ebooks.
More is more
Customers are seasoned experience collectors. In a social media frenzied macro-culture oversaturated with the flashy, only the most authentic transient tales count.
The masses don’t just want the quick, easy and dead. Detail, delivery, delighting in delicacy is the new deal.
Customers demand the unexpected. Playfulness in an over-adult world is a very real phenomenon. Think rainbow-coloured foods and Mexican tequila rain.
Amidst the hype, people want to feel better about themselves. Purposeful progress on a path toward self-actualisation and a story worth sharing is worth its weight in attention spend. Make it look like an adventure, and your brand is on its way.
Museum workouts and trancing out to Chromatherapy yoga show that you are an edgy go-getter expanding your transcendental horizons. Event spaces more permanent than pop-ups heighten the experiential community. Creative hubs for coworkers fuse funkiness while easing the isolation funk.
Experiences need to be tailor made to unique specs. Minimalistic approaches can also still grab attention far more powerfully than grandiose firework displays that fizzle out quickly.
Seamless processes, enthralling product
Netflix aims to make watching great content as easy as possible, but wants you to watch the content.
Optimise your CX strategy through a pragmatic approach. At times you will want to spare the customer’s attention spend, and at times you will want to encourage it.
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