How to hack your conversion rates.
There is one very interesting statistic regarding conversion rates.
The 10% best conversion rates in any industry are about 5 times better than the median conversion rate. Five times.
If you create great landing pages and have awesome product images you will increase your conversion rate by a few percentage units.
But if that’s what you are spending most of your time on… you are busy rearranging deck chairs on the titanic. Someone in your organization should probably be doing a great job with images and copy and colors and all that stuff, for sure.
But do not fool yourself.
You do NOT improve conversion rates by 5 times by gradually improving your landing pages, product images and copywriting.
The clue to finding out why some stores beat their competitors conversion by 5 times can be found somewhere else.
Research has shown that 80% of shoppers compare prices online before shopping in stores.
That may be the most important fact anyone running an e-commerce store read this year. If you really understand the implications.
If you are doing what everyone else is doing – selling the same stuff and looking at similar conversion numbers… you are most likely “getting stuck in the middle”.
Getting stuck in the middle sucks..
It has always sucked.
In old school terms;
“Some firms fail to effectively pursue one of the generic strategies. A firm is said to be stuck in the middle if it does not offer features that are unique enough to convince customers to buy its offerings, and its prices are too high to compete effectively based on price.”
There are two classic generic strategies to get unstuck.
In the language of the internet, they would be described something like this;
Make your offer unique and therefore the single choice for a specific product search.
Lower your prices.
Be the best (identical but cheapest) choice for a specific product search.
These are decades old insights. They are just getting multiplied a hundredfold by the transparent nature of the internet. Every single store is right next to every single store. Product and price comparison is milliseconds away.
Both strategies will set you apart from your competitors and both will…
Hack your conversion rates.
Your conversion rate will increase significantly if you have a unique product simply because anyone searching will find no alternatives and if they want the product – there is nowhere else to go. But creating a unique brand takes time and oodles of money.
However. In the short term;
Your conversion rates will increase just as significantly if you lower prices to become the lowest price for a specific product, because your customers have already made their choice. They have come to the end of the road of their search.
Our advice for significantly increasing conversion rates and sales in the short term?
Lower your prices to a level just below that of your competitors and you will find that all the comparison shoppers convert in a hurry as conversions numbers rise significantly.
You have now hacked your conversion rates.
//Jonas – Jupiter Innovation