What Conversion Rate Optimization Focuses On, And Strategies That You Can Implement
What conversion rate optimization focuses on is this, improving conversion rate on a sales funnel, marketing process, or even sales process.
When an organization is scaling up, systems and processes create drag naturally overtime. Conversion Rate optimization helps you address specific area’s that will give you the MOST output in return, if you are to put effort into optimizing the system or process.
Sales Team Conversion Rate Optimization Example
For example, if you have a sales process that is converting at 10% – spending time training your teams to increase that process so that it can produce to 15% would increase your overall closings significantly.
Let’s say you have 1000 phone calls booked per month for your sales teams, and those phone calls are converting at 10% – that will give you 100 sales. If you take 15% into consideration, you’re now looking at 150 sales. A significant difference. 50 additional sales per 1000 phone calls is a dig difference at the end of the year.
Even though in this example we are talking about sales teams, we believe that conversion rate doesn’t just end once you have optimized your marketing and technology. Conversion rate then flows into the business into all essential processes.
Client Retention Conversion Rate Optimization Example
Another example, if you are to retain 15% more clients per year. These customers come back and purchase from you every single year, from simple changes in your delivery or “after-sale support” processes. That would be a big deal, wouldn’t it? Let’s borrow numbers from the example above. 1500 total sales per year, and 15% of those sales come back every single year? That would result in an additional 150 sales, that you don’t have to work for, year after year. In 10x years that is 1500 friction free sales.
CAC or CPA Conversion Optimization Example
One more example, just to drive it home for you.
Let’s say you spend $20M/YR on advertising spend. On average your CAC or CPA for each sale is $1700 per new client (high-ticket products usually sit at this CPA once the campaign is optimized.) That would result in 11,764 sales, from a $20M/YR ad spend. If you figure out how to decrease that CPA to $1500 per sale, you would bringing in an additional 1569 sales per year. If those sales are worth $5k-10k, you’re looking at an increase of 7.8M-$15.7M in additional revenue on top of the original 11,764 sales.
You can spend thousands of hours considering what to conversion rate optimize. Or you could focus on the few key drivers that will move a campaign forward. Each business will be different. For the most part you’ll recognize that only a handful of metrics are worth optimizing for. If you’d like support, hit the apply button below and let’s see if we can do something together.
Troy is the CEO & CIO at Legacy Media Partners. We manage large media budgets, and solve complex scaling issues that Mid-Market companies always face. In 2021 we added $7.6 Million in additional profits to our client’s bottomline.
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