Once upon a time,
I sat in the house of Perry Marshall.
He’s the “Godfather” of Google Adwords and renowned internet marketer…
…and he said something horribly clarifying.
He said, “Until you know how much it costs to buy a customer you don’t have a business…you have a marketing slot machine”.
It sent chills down my spine.
Did I know what our cost per acquisition was? Did I want to know?
Was I gambling with my time and money? Are you?
Know Your Numbers – Thing #1 (ish)
At minimum, you need to know how much it costs to buy a lead. Then, you need to know how much it costs to buy a customer.
Here are two simple formulas to help:
– Number of Leads Acquired / Marketing Spend = Cost Per Lead
– Number of Customers Converted / Marketing Spend = Cost Per Acquisition
When you know these numbers you can scale and repeat the act of converting customers over and over again.
That’s fun, but enough with the (ish)…
Here are 7 ironclad ways to improve sales conversions online:
1. Testimonials –
Get someone to use your product. For free if need be. If you already have customers, get them to brag on you and ask permission to use their words on your site.
Here’s an example I use over at www.groovycoaching.com. This is where I help entrepreneurs build sales funnels…
2. Guarantees –
Customers need to know they can trust you. They need to know that you trust your product. They need a 100% guarantee that you will deliver the “better version of themselves”(hint: that’s what they want, not your product). Here’s a strong example and one of my favorites:
3. Payment Options –
People want choices, but not too many. Give them an opportunity to break up payments if you can. A TWO PAY or THREE PAY structure on a $1K product can increase conversions easily. You basically let people rent to own your information/service. $99 a month for 3 months is a lot more palatable for those on the fence that $300.
Basically, it’s the lay o way system at Wal-Mart:).
4. Free Trials –
Sometimes the best doorway into conversion is to let the customer have it for free…for a little while. Many software companies use this. BTW, if you want a sales funnel slave machine that works while you are not, start your free trial of Click Funnels here now.
5. Strong Call To Action –
Don’t be timid! Tell them what you want them to do. The human mind is that of a lizard brain. Tell them what to do. Step-by-step. “BUY NOW” are words that bring relief to a hungry customer dealing with a decision crisis.
6. Scarcity –
People hate missing out. There’s actually a psychological phenomenon called FOMO. Fear. Of. Missing. Out. So…limit the availability of the product or service you provide. Back them into a corner with the fear of not having access. “Only 10 spots available”. “25 discount codes will be handed out”.
Don’t play games though, do what you say you’re gonna do or your prospects won’t believe you on future offers.
7. Make It Easy –
Let’s keep it simple stupid. Don’t make your customer travel through a labyrinth of complicated decisions. The human psyche needs the shortest distance from point A to point B.
Only retrieve data necessary for you to get paid and for them to receive happiness.
Where are you with your sales funnel? How would you describe it? What’s your business/side gig? Post it in the comments along with your thoughts on the above.