Optimising Conversion Rates

Many businesses are now aware of the importance of marketing for any successful venture, however they often overlook enormous amounts of missed opportunities by having holes in their sale funnel.

The sales funnel simply describes the different stages a buyer will go through on the way from being a prospect client to a paying one.

The stages might include, but are not limited to, an online opt in form, a phone conversation, a face to face meeting and a follow up call afterwards if they didn’t buy.

Optimising your conversion rates requires several steps including:

  1. measure your conversion % in each step of the sales process
  2. identifying which step in the sales process are performing the poorest
  3. Evaluating the process
  4. Improving the process and up skilling staff as needed
  5. Measuring improvements monthly

For example

A gym owner may get:

  •          100 inquiries a month
  •          get 50% to attend a 1on1 sales presentation and
  •          get 50% started on a program as a paying client
  •          so in this example 25 new members start per month or 300 people per year

In this business more than 50% of the marketing leads are being lost between steps 1 and 2. 100 people inquire, but only 50 people come in for a gym tour.

By improving this gyms ‘show rate’ by just 10%, the impact is as follows

  •          100 inquiries a month
  •          get 60% to attend a 1on1 sales presentation and
  •          get 50% started on a program as a paying client
  •          so in this example 30 people start per month or 360 people per year  – that’s an extra 60 paying members each year

If hypothetically the gym members pay $20 per week, that tiny 10% improvement in 1 small step of the sales funnel will add $62,400 in additional annual profit

What gets even more exciting is that 10% improvements are not that difficult to achieve so after you apply this strategy to one step of your sales funnel, there’s no reason you cannot do the same to another stage and to further increase your profit.