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We all want better results from our digital marketing efforts. More leads drive more sales. More sales are more revenue and, depending on your profit, can open up a whole new world of possibilities.
Today we are going to look at a specific sales conversion strategy to help improve your results and increase return on investment and ultimately increase profit.
Specific sales conversion strategy
This particular sales conversion strategy stems around your “offer” meaning how your product is presented to the potential customer. Is it compelling enough to get a larger percentage to make a buying decision?
Chances are you are driving cold traffic to your site from various paid mediums and your offer can make or break a campaign. If you have seemingly tried just about everything you may want to take a cold hard look at your offer. This particular sales conversion strategy has helped several of our clients dramatically improve their results and profitability.
Let’s take a look at a few examples of this sales conversion strategy in action.
1. Buy one get one
A particular client was shipping a physical product on a subscription. At the time of hiring us, they had a cost per acquisition (CPA) of almost $80. Since this product was less than $20 on subscription it was taking them about 5 months to be profitable on their marketing campaigns. For some companies that might be ok but for such a low ticket purchase we had to do something.
So we applied this specific sales conversion strategy and switched up the offer.
Something a bit more compelling that would push more visitors to purchase. Initially per the approval of the client tested a free trial, it increased conversion dramatically but the customers that came in were not ideal with the majority canceling after the trial expired. CPA costs dropped to as lost as $.25 (yes 25 cents) but since they weren’t paying we had to do something else.
We settled on the age-old buy-one-get-one strategy you see on just about every infomercial out there. So instead of just ONE on their first order, they would essentially get TWO for the same price.
This sales conversion strategy worked. Daily sales went from about 35 to almost 400 and the CPA cost settled in at about $10 all from switching the offer to be more appealing. Now the company was profitable on basically day 1 instead of 5 months.
2. Double up
This particular example of this sales conversion strategy is similar to the buy one get one but with slight language difference. Instead of buy-one-get-one, we changed the language to read “Double Your First Order”.
Again this was a monthly subscription product and at the time they were getting customers at an average rate of about $25. Which in this case meant they would be profitable after about 2.5 months.
As a result of positioning the product as double, we were able to cut their CPA costs down to an average of $13 and we ultimately were able to double their active paying subscribers in just 45 days.
Now they were profitable almost immediately on the new customers and after optimizing an upsell in the sales path we increased their customer value over 100% in 30 days.
3. Trial length
We already talked about how for one particular company a free trial brought in the wrong customers but for the majority, specifically in the SaaS market, it makes absolute sense and trials are a BIG driver of revenue.
Traditional thinking may lead you to believe that a longer trial would be better. A longer trial allows the customers to use the product longer and in turn get hooked and ultimately buy.
But in one example a longer trial was actually hurting the companies conversion rates. Instead of a 30-day trial on the product, a 14-day trial was tested. The result was that the conversion rate on the free trial signup rate more than doubled. It simply doesn’t make sense but it was tested and the results showed a ridiculous improvement.
Our thoughts on the findings were that the trial customers could get the results in 14 days instead of 30 so the perceived value and results were greater. All we know is that it worked.
When looking for a better sales conversion strategy you may want to take a hard look at how your offer is presented. Can you add value to the product? What can you add to make it seem as if your product has a higher perceived value? Highlighting benefits, guarantee, and customer testimonials can help increase the value as well.
There you have it, a specific sales conversion strategy centered around your offer with 3 examples of how well it worked.
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If you want help structuring your offer to make it more profitable be sure to reach out for a no-obligation conversion acceleration session.