Don’t let all the analytics and metrics available for your business get in the way of the only two things that are truly important …
1. What is the cost of acquiring a customer? (COA)
What does it cost to acquire, or get, a new customer?
2. What is the immediate customer (order) value (ICV)
What is the value of the order placed by the customer?
So what do each of these mean, and how can they help us?
1. Lowering the cost of acquiring a customer (COA)
If you want to improve your profits, you want to reduce your COA. So how might you do this?
You can focus on the cost of the traffic, for example, if you are advertising on Google or Facebook, you’ll be looking at reducing your cost per click. Or maybe you’re paying for SEO and you’ve finally made it on to Google Page #1, and you can ease off on your SEO costs.
I’ve included a handy sheet we use with our customers to figure out these costs. You can get it here:
But focussing on those clicks and costs isn’t always the best answer.
Instead, a better way to reduce your COA is to improve your conversion rate. Focus on increasing the conversion rate (i.e. increasing the number of people who purchase or opt-in when they visit your site).
The #1 way to do this is to improve the experience on your website, and to focus on where the ‘leaks’ are occuring.
I’m not talking about a brand new website, or hiring a graphic designer and spending thousands of dollars.
Improving an experience is more about the stranger coming to your website, and finding the answer to what they need easily, than it is about flashy glitzy design.
You only have to look at your ‘bounce’ rate to know that 97% of the visitors to your website aren’t engaging … aren’t converting. They are jumping off almost as quickly as they landed.
You can change that by making the most craziest of small changes… that make gigantic differences.
Want to know what they are?
The absolute top ten of them are right here… put together in this concise no-nonsense video course.
DOES ONE SMALL CHANGE REALLY MAKE A DIFFERENCE?
Let’s do the sums.
If you get 1 more person to order from your website today, that is 365 new orders in 1 year. If each order was only $10, that would be $3650 increase.
Just by changing one thing!
And we haven’t even discussed how this compounds when you secure repeat orders from that person.
Make fixing your website a priority today. These are things you can do on your own site to change your conversion rate immediately.
2. Increasing the immediate customer order value.(ICV)
This can be done right now… with huge effect.
If you don’t have some ‘add to carts’ on your e-commerce site, you’re missing the chance to increase your customer order value.
Pop some in right now. Put some product bundles together. Find a way to take that initial order up 10%.
For example, if you are selling kid’s bathers at $49.95, can you add a hat (with a big discount), and raise the ICV to $59.95?
Or … if you are selling a service, can you add an ebook or even an affiliate product (someone else’s product) on for your customers?
For example, you might want to recommend the tools you use yourself, just like I have here:
By the way, my most recent find is BackBlaze – now my favourite auto-backup program!
How about you?
Are you watching these two metrics? And if you are, what are you doing to improve your conversion rates? Do your business a favour. Get this now, and invest a little time over the holidays to improve your knowledge… and improve your sales.
PS. Although I put 10 (actually 11) tweaks in this course, if you just did the first tweak, you’d increase conversions immediately!