January 15, 2009

Truthfully Answer These Questions & Increase Your Profits

If you were managing a multi-million dollar corporation you'd have a team of accountants and bean counters providing you with all manner of statistics and financial statements. After all, you'd have to account for your actions to the shareholders.

That's why I'm often puzzled to see so few people pay attention to the performance data for their own businesses

When considering your own business, do you know the answers to the following questions:

  • What's your subscriber opt-in rate for each of your ezines?
  • What's the current sales conversion rate for each of your websites?
  • What is the percentage refund rate for each of your products?
  • What proportion of potential buyers abandon your shopping cart without making a purchase?
  • What is the lifetime value of each customer?

Improving any one of the above figures by making even small changes to each part of your sales proces will add to your bottom line profits at little or no cost.

Whatever your advertising cost, measured in hard cash or hours of time spent, you can get a better return on your advertising spend if you improve what happens on your website.

Let me share an example with you..

Lets assume you make 30 sales of a $27 information product every month and 12% of the people who get as far as the shopping cart bail out without completing the purchase.

Let's say you add an Exit Survey to discover the main cause of that shopping cart abandonment.

Your Exit Survey results reveal that most people who don't complete the purchase are worried about the security of their personal information.

To allay their fears you add extra text on your order page explaining the payment process step-by-step, showing them exactly what to expect, and you reassure them that their data will only be seen by a very reputable payment processor.

OK, that small tweak could very easily halve the number of people who abandondon the cart.

That small change will generate an extra 22 sales every year and add $594 to your annual sales revenue. For what.. a couple of hours of your time?

I recommend that you start paying attention to your numbers. It's much more effective to invest a little in optimising your sales process than spending more money on advertising.

Filed under News by John

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Comments on Truthfully Answer These Questions & Increase Your Profits »

January 15, 2009

Jay @ 2:19 pm

Heeeey.. Mr T ;)

I have to be honest here… question number 4 is one that I don't often pay attention to, despite my obsession with the numbers(and improving of) the other questions.

I always put it down to being on of those things that you can't avoid.. maybe some tweaking is required..

Thanks dude

Peace

Jay

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» Blog Archive » Optimization is Getting More Out of What You Already Have @ 7:34 pm

[...] a quote from a post I just read on John's blog. When considering your own business, do you know the answers to the following [...]

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