When conducting any sort of business online, to make more sales, you undoubtedly will have asked yourself the question, “should I focus on increasing traffic, or increasing conversions?”. It’s a good question to ask, but a hard one to answer.
So what do you do as a company to go forward and make strategic decisions that end up giving the best returns for all stakeholders? Firstly, if a business is not getting the sales or growth that they want, then they must take a hard look at itself and be humble enough to admit that there might be a problem. Secondly, you must identify the problem. Thirdly, figure out the best way to solve it as efficiently as possible.
There is an interesting statistic that came out that stated that for every $92 a business spends acquiring customers/traffic, only $1 is spent actually converting them*. This is very interesting as this shows a general trend in companies believing that as long as they can get a customer to pay attention, they will make more money. Let me explain to you why this is the wrong way to think about this issue.
Yes it is important to get customers to view your site and products, however it is just as important to focus on what they do once they are there. If you were to have traffic to your product page of 30,000 visits per month and only made 1500 sales, that gives you a conversion rate of 5%, quite a low conversion rate. Increasing this rate to 25% would result in over 73,000 more unit sales per year. View the table & chart below to see the potential impact of when a conversion rate is improved through listing and product page optimization.
These examples are extreme and oversimplified, however not that far from the truth. You must combine lead generating efforts with conversion optimisation to get exponential improvements.
At 4Profit Labs, we only specialise in the Amazon sales channel. For us it is even more important to focus on conversions. When a client is a well known or established brand with momentum, due to large amounts of traffic, small changes in the right direction can have an exponential impact. Getting a product listing page to go from 5% conversion to over 20% can result in millions of dollars in sales per year.
It is especially important to focus on conversions on Amazon, not only because the buyers and traffic already exists there, but because it is an extremely crucial metric in higher search ranking. Amazon’s unique A9 algorithm is heavily influenced by positive sales data and track record, and higher conversion rates are proven to result in higher search ranks**, which then results in more visibility/traffic, which then leads to more conversions and sales. This creates a success loop that drives good product listings to the top, and bad ones to the bottom, no matter how big your marketing budget is.
So how do you increase your conversions on Amazon (or anywhere for that matter) as efficiently as possible? By focusing on the things you can control. Your images, your sales copy, your product information and your entire user experience. Making sure the customer is lead through an experience that facilitates sales and buying mindset. Every single component of your website, sales page or product listing must be optimised to lead and persuade customers that your product’s value proposition is greater than the price that they have to pay for it, and seamlessly lead them towards the buy button.
If you think that your product pages have a conversion problem, then first step is to optimize what you have control over. On Amazon it is your images, your sales copy, your keyword placement and keyword prioritization. If you don’t know where to start when it comes to creating optimized sales pages and listings, you can go to our website for guides and case studies.
Click here to see a case study of the strategies to use to increase your conversions instantly.
Co-Founder of 4Profit Labs