The Ingredients To Increasing Sales
To increase your bottom line, you need three essential ingredients:
- Traffic;
You must focus on getting more traffic from various different sources. This should be a constant priority and something you work on regularly. Track your growth for each traffic generation tactic to see what brings in the most traffic in relation to the effort it requires. Keep an eye out for fresh new ideas to boost your traffic. - Subscribers;
As you start to get more traffic, your list will start to grow. You must focus on tweaking your opt in-forms to increase your opt-in rate (conversions from visitor to subscriber). One way to do this is to create a new lead magnet to get the attention of a different sub-group of your target audience. Set up a few dedicated opt-in pages and start driving traffic to them. - Customers;
Things get interesting when you focus on turning those subscribers into customers. You want your customers to spend money with you either by buying your products and services, or through your affiliate links. To increase revenue at this stage, you could offer more products; Raise your prices; Find attractive offers you can promote as an affiliate; And/or work on your Sales and Retention funnels. There is a lot you can do to grow your bottom line once you are consistently bringing in traffic and converting this traffic to subscribers.
Understanding The Relationship To Increase Your Bottom Line
The real power of these three ingredients becomes apparent when you start to look at how they work in synergy. By getting more targeted and higher quality traffic you have more people you can convert into subscribers. If you improve your opt-in rates, and create higher priced products with sales funnels that convert well, you can quickly make a huge difference and substantially increase your bottom line. If you focus on only one aspect, you might see a little improvement, but by seeing the relationship and making improvements at each step, you will start to experience exponential growth.
Example
Let me illustrate this with an example. Let’s say you start out with traffic that brings in 100 new visitors per day. Your opt-in rate is 10 percent, which means you end up with 10 new subscribers each day. Your subscriber to customer conversion is also 10 percent, which means that each day one of these subscribers turns into a customer by buying one of your products at R10. That will earn you an average income of R10 per day.
The Impact of Extra Traffic
Now let’s see you double your traffic. With nothing else changing, you go from 100 to 200 new visitors per day. 10 percent of them will still opt-in, which gives you 20 new subscribers each day. 10% of these new subscribers will still convert to customers who purchase one of your products at R10, which gives you 2 x R10 sales per day. This means you will go from making R10 per day to R20 per day.
The Impact of Increasing Your Opt-In rate
But what if you can also improve your opt-in forms and go from a 10% to a 20% opt-in rate? Using your new traffic of 200 new visitors per day, at an opt-in rate of 20% you will go from 20 to 40 new subscribers per day. Using the same Subscriber to Customer conversion of 10% you will get 4 new customers per day who purchase your R10 product. This will increase your bottom line to R40 per day.
The Impact Of Increasing Your Subscriber To Customer Conversion Rate
Let us say you also increase your prices and/or create a few more products and each of your customers ends up spending 3 times as much as before. If we continue with our example of 200 visitors with a new opt-in rate of 20% we will still have 4 new customers per day, but instead of spending R10 they spend R30. This will increase your revenue to R120 per day.
That is a pretty big jump from R10. And all that by only doubling your traffic. Pretty impressive, isn’t it?
The Importance Of Conversion Tracking
By tracking your conversions at each step you will quickly see where you need to improve. If you generate traffic that brings in 100 new visitors per day, but have no subscribers you know there is a problem with your Opt-In offers or Landing Pages. In this case instead of working on getting more traffic, you should analyze where the problem lies and fix it.
The following is a list of some of the things you could check if you have problems at a conversion stage:
Low Opt-In Conversions
- Check the quality of your traffic – is the traffic mostly made up of your target audience?
If not, look into your traffic generation tactics to ensure they only bring in traffic of people interested in your offers. - Check your opt-in offer – is it appealing to your target audience?
If not create an opt-in offer more in line with your target audience and what they are looking for. - Conduct A/B testing on your Landing Pages.
This should be done consistently even if you do not have low opt-in conversions.
Low Subscriber to Customer Conversion Rate
- Check your opt-in offer – does it relate to your products/services and lend itself to a sale?
If not, rework your opt-in offer to be more in line with your products/services. - Check your sales funnel – once your traffic turns into a subscriber, you should put them through a sales funnel that helps build trust in your brand and gently guides your subscribers towards a sale.
If you do not yet have a Sales Funnel, now is the time to focus on it. We can assist you with this if required. - Re-evaluate your target audience.
If all the above is in place and optimal, you might need to re-evaluate who your target audience is. Ensure your target audience is not only people who are interested in your products/services they must be able to pay for your products/services too. - Conduct market research.
This should have been completed before you started your business, if you did not do this and are having problems making sales, go back to this step to see what your target audience says about your products/services.
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