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How to Convert Web Visitors into Paying Customers

You all know the feeling. It arrives the moment that you focus on your website’s monthly traffic analytics. The number of web visitors each month lure you into a cold, long stare as you compare it to your number of sales that month. What seems like a slight breeze of confusion sweeps over you, making you wonder why those numbers do not match. Unfortunately, those numbers will not ever match until you make some changes to your website!

As the number of people visiting your website increases, you want to convert those visitors into loyal clients. Listed below are five tried and true methods of converting those visitors into customers

1. Demonstrate how your product is ideal

The idea is to convince your visitor that they do not need to continue looking at other sites; your site has it all and your product is exactly what they need. Remember: The goal is to show your visitors that they need you. Make your visitors feel like you are addressing them and not just bragging about yourself. For example, instead of listing testimonials, try describing various situations and how you helped the client. You want the client to recognize him or herself in the scenarios. 

2. Utilize home page sign ups 

The more convenient your contact information, the more likely your visitors are to actually use it. Many people only view a site once, so grab their attention early on and start the relationship right away. Remember: Many people are wary of new relationships, even if it is a simple web presence. By circulating a weekly or monthly newsletter or magazine, you can maintain contact without seeming overly pushy. 

3. Immediate gratification goes a long way

Give your visitors something they can use immediately. Whether this is a free gift incentive, a fantastic Top 10 List, or downloadable forms, provide every visitor with a takeaway resource. Remember: Don’t forget to put your name on these documents! Publicizing yourself, your site, and your product is vital. Every pdf or downloadable document your visitors print is one more piece of advertising.

4. Create a sense of personal commitment

If you portray yourself as invested, your visitors are more likely to think you are invested in them. Be direct. Make it personal. Above all, make it crystal clear that you can help solve their problems. Make it very clear that they are able to trust you! Remember: Position yourself as an invaluable resource and make your contact information accessible and easy to locate. This brings you one step closer to gaining a new client.  

5. Quality is obvious

When it comes to your actual website, you get what you pay for. While it may seem expensive in the beginning, think about how much money will be generated from a professional website. Remember: Website maintenance is extremely involved. Not only does the content have to be exact, the design, development and usability must be exceptional. It is usually beneficial to contract with a designer who can transform your product ideas into a credible and professional website. 

Is Cold Calling Dead?

Woman talking on the phone

According to experts, cold calling is not dead. It is still very much alive and kicking. Although it is an old-fashioned tactic, it is definitely still a thing. The art has evolved and adapted over the years to the different ways that people consume products. The only thing that has really changed is the cold calling strategy.

Cold calling first began in 1873, long before the invention of the Internet. Back then, “cold calling” was simply visiting people door to door and selling products directly to someone’s face. When telephones were invented, cold calling transitioned into calling homes and selling products to people over the phone. When you think about it, this technique has been around for so long because it has proven to be successful. Although the strategies for cold calling have changed, the sales approach hasn’t changed. Although we have many new tools and sales tactics, but the process of meeting strangers, introducing them to a product or a change in business, and convincing them that purchasing from you will benefit them in more ways than one is the same.  

As previously mentioned, cold calling has evolved over time along with the different ways that people consume products. It has caused a snowball effect of contacting people in other ways, such as cold emailing and cold messaging. The most difficult aspect about cold calling is its entire essence: that fact that there is no relationship between you and the person you are contacting. The lack of a relationship makes it much easier for the person you called to not answer, never call you back, or hang up on you mid-conversation. Those are obvious negative realities of this tactic, but despite those downfalls, cold calling still works with about a 2% conversion rate. 

If you turn to Google, you will likely see hundreds of articles about the “death” of cold calling. With an abundance of these articles floating around the Internet, it would be naïve to deny the facts. It really comes down to perception. It still has the potential to work as long as you have the will power to strike up a conversation and the thick skin to take a rejection. Although it does have potential, you will most likely face challenges while in the process.

Consumers today have an extremely negative perception of cold callers, which is why it is so believable that cold calling is indeed dead. Currently, there are nearly 240 million phone numbers on the national do not call registry. Those numbers have even been increasing by the year. It is clear that people do not want to receive unsolicited calls. 

Cold calling used to be one of the only prospecting strategies out there. While it isn’t dead, it would be wise to recognize that it shouldn’t be your only go-to sales option. The Harvard Business Review released information that shows cold calling is ineffective 90% of the time. Less than 2% of cold calls result in a meeting. With these facts, it would be hard to believe that it ever works. Believe it or not, it isn’t dead; It’s just evolved. 

Nowadays, modern businesses are using alternative solutions to continue to make sales without fully relying on making an unsolicited call. Some of these alternative sales solutions are engaging with customers on social media, answering questions on Quora, asking for referrals, keeping in touch with prospects after the sales process, and writing for a blog. 

To answer the question: no, cold-calling is not dead…yet. It is still very much alive. It is simply a tactic that has evolved into several other sales strategies. Although modern businesses have seen success with cold calling, it should not be your go-to sales solution. Consider other alternatives for connecting with customers and you may find that you have a better success rate when it comes to selling products. 

Why Customer Lifetime Value is Important and How to Calculate it

Most people underappreciate the purpose of Customer Lifetime Value, which is crazy because it’s essential in the growth of your business! This is the one time that you cannot drop the ball! Customer Lifetime Value may not seem like an important quality, but refusing to calculate your CLV may cause you to fall behind your competitors in the long run. 

Customer Lifetime Value is a measurement of how valuable a customer is to your company. It tells you how much your customers like your products and services, how well you are resonating with your audience, and how you can improve. It also helps with other things like sales, marketing, product development, and customer support. The CLV does not base a customer’s value based on singular purchases. It measures the amount of money that a customer will spend on your business over the lifetime of your relationship. 

For example, let’s say that the same customer visits your coffee shop every once in a while and spends a total of $50 per year at your shop. If that customer continues spending money at your coffee shop for the next 5 years, then their CLV would be $250. Although the math was simplified for the purposes of this example, this simple calculation can be determined by multiplying the average monthly transactions, the average amount spent per transaction, the average number of months that your customers remain loyal, and your average gross margin. 

Your business cannot thrive without knowing this essential information. Studies show that it costs less for a business to keep an existing customer than it does to attract a new one. Specifically, the odds of selling to a current customer are 60%-70% while the odds of selling to a new customer are 5%-20%. Your customers are not just the money that they spend on your business today. They also have an incredible future value if you can keep them as customers. Most businesses have seen major growth merely by increasing the value of their already existing customers. 

The CLV helps businesses maintain a lasting relationship with loyal customers while learning how to build relationships with new customers as well. The CLV goes hand in hand with Customer Acquisition Costs (CAC). Customer Acquisition Cost was created to tell you how much you need to spend to acquire a single new customer. For most businesses, the cost of acquiring a new customer is determined by the costs of generating a new lead and the costs of converting that lead into a customer. The Customer Lifetime Value number can only make sense if you take the Customer Acquisition Cost into account. 

There is so much value in knowing your business’s Customer Lifetime Value. Calculating your CLV can help you determine how much you need to spend to acquire a similar customer and still have a profitable relationship, what kinds of products customers with the highest CLV want, which products have the highest profitability, and who your most profitable clients are. These decisions can help increase your business’s profitability. 

In the midst of everything going on, you cannot forget the value that your customer provides to your business. They’re a valuable asset whose importance shouldn’t be swept under the rug. You can capitalize on their importance by attempting to understand the customer experience so that you can measure feedback. Attracting a new customer requires a ton of time and energy, such as advertising, marketing, special offers, and more. We previously established that it costs much less to keep a recurring customer. A few things you should be asking yourself before you do anything are: 

  1. How much do I need to spend to get a customer? 
  2. What do I have to do to keep this profitable?

If you know the answer to these questions, then you will be putting yourself in a great position to get ahead of your competition. There are also some proven techniques that you can use to start boosting your CLV. These proven techniques should be used to sell to your current customer base to increase the likelihood of them buying from you. Some examples of things you could do would be to make it easy for customers to return items, communicate expectations of delivery dates, create a rewards program to encourage reoccurring purchases, build brand loyalty by offering freebies, upsell your items, and make it easy for customers to get in touch with you. 

You will build yourself a more successful and profitable business just by doing these simple things. Keep your focus on retaining your current customer base and attracting new customers and you’ll see your business flourish like you’ve never seen before.