A 7 Step Program To Generating More Sales - Part One
Every business wants more sales. The reality is there are
only 4 ways you can crease sales.
1. Increase traffic
2. Increase conversion
3. Repeat selling
4. Increase the price of your products
All four are viable ways increase your profits. Did you
know if you focus on just one of those ways, you’ll
discover a huge increase in sales without working harder
and spending more money.
Which one will help you do this most effectively?
Without exposing the answer now, keep on reading and
see if you can work it out from the hints.
Step 1: The 99 That Got Away
Say for instance, you sell a product for $50 per unit
and have a goal to achieve $2000 profit this month.
Internet marketing studies suggest that the average
ecommerce website converts 1-2% of their visitors into
customers.
1 website visitor out of a possible 100 = 1%
conversion. By using promotional campaigns, you pay
$30 to obtain those 100 website visitors. So suddenly
your $50 sale less $30 marketing costs = a $20 profit.
Therefore to achieve your goal of $2000 profit, you will
need to generate 100 sales and because only 1 of 100
visitors to your site will make a purchase this means
you need to get 10,000 visitors to your site this month.
Now that’s hard work!
Look at it from another perspective. what can you do
with the 99 visitors that didn’t make a purchase?
You already know that you spent $30 to generate 100
visitors. If you were to gain two customers rather than
one, then you would generate $100 in sales. $100 - $30
= $70 profits is a 350% increase without you needing
to spending any more money or time.
Now you can meet your profit objective with only 2450
visitors, far less than 10,000 with 1% conversion that we
discussed earlier.
If you haven’t worked out the number one way to increase
your sales yet the answer is number 2 - increase
conversion from hits to sales.
But what about the other 3 ways that can help you to
increase your sales?
Of course you need to generate website traffic but at the
end of the day if your visitors don’t convert into
customers then you won’t get any sales. Sales from
repeat customers is the perfect way to also increase
sales, but this will require you to build your client base
in the first place. Be careful with the concept of
increasing your price, as the market will only withstand
so much of a price on a given product.
Increasing your conversion rate becomes the best way to
increase sales and profits. Imagine if you continue to
increase your conversion rate to 3% or 5%? Why not 10%?
How do you increase your conversion rate? Next week in part
two, we’ll start showing you what to do to raise your
conversion number.
Tina Valiedi is a contributing editor for
MPStrategies Firm,a company whose breakthrough service
unleashes the power of the internet to drive hidden
potential clients to your site. For more marketing articles
visit: http://www.mpstrategiesfirm.com