March 14

Successful Business? The Two Factors That Really Matter

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Good morning and happy Tuesday!

I hope your day is starting off a lot better than mine. I slept past my alarm and mother nature decided that it would be a good time to rain – taking my morning routine away from me…

I thought my whole day was going to crumble because of that.

I know what you’re thinking, first world problems….

All right all kidding aside, today I want to talk about the two major factors that really affect your business.

If you can wrap your head around these two concepts, I promise you that you will see more customers coming in and more sales flowing through.

You ready?

Ok here they are…

Traffic and Conversion

That’s it, simple right?

Not really….

When I consult for businesses, about 95% of the time they have either a traffic problem or a conversion problem.

But what I really want you to understand is how these two factors come into play within your business and how you can make them work for you.

Ok so let’s define them really quick…

Traffic: Broken up into three categories (cold, warm, hot) but essentially the people that are starting to become aware of you and entering your sales process.

Conversion: The % of people that move along your sales process.

To illustrate my point, let’s go through an example.

Today I am consulting for a local chiropractic office who has hired me to consult them on their sales process and online funnel.

Ultimately they want to drive people into their business and bring them on as recurring customers (we’ll keep this example simple)

Ok so their funnel might be something like this:

1. A Facebook ad that advertises a free 15-minute massage if they book by a certain date in exchange for their email.

2. For those people that come in for the free massage, we upsell them on getting an adjustment and give them a 25% discount if they do it the same day as the massage.

3. For those that take us up on the adjustment offer, we want to book them for a recurring monthly adjustment.

Here is where traffic and conversion come into play:

1. The ad that we displayed was shown to 1000 people but only 100 clicked through. So a 10% conversion rate.

2. Out of the people that clicked on the ad, only 30 people decided to enter their email and claim the free massage. So a 30% conversion rate

3. Out of those 30 that gave their email address and came in for a free massage, only 5 decided to take up the chiropractor on the adjustment. So about a 16% conversion rate.

4. Out of the 5 that took up the chiropractor on the adjustment, only 1 person decided to schedule recurring meetings. So 20% conversion.

So as you can see, there is traffic at every step of this funnel and each step has its own unique conversion rate.

These two factors will allow us to see where we need to make adjustments and tweak certain aspects of our sales process.

So in the example above, I would recommend adjusting the ad copy to increase the number of people that see the ad and click through.

I would also suggest taking a deeper look at the sales process to move more people from the free massage onto the taking us up on the free adjustment offer since it is only converting at 16%.

Here is where the business can start looking into proving more of an “experience”, enhancing their customer service, and providing more value.

Aside from ROI, understanding your traffic and conversion will shed a light on the areas that need your attention and where best to focus on first.

The concept is simple:

Traffic + Conversion = $

However, do not kid yourself, it takes a lot of hard work, testing, and persistence to get your numbers where you want them.

But, if you can start looking at your business through a traffic and conversion lens, you’ll be able to identify your areas of opportunity and make them work for you in the long run.

Hope you have an awesome day today!

-Oscar


Tags

conversion, money, roi, success, traffic


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