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[MUSIC PLAYING] DREW SANOCKI: Hey, welcome to module 4, lesson 1, The Right System, Building the Conversion Rate Mousetrap. In this module, we're talking about multiplier three, acquiring new customers. And when you talk about acquiring new customers and generating more customers for your business, it's really two things, traffic and conversion. Both those things can generate more customers. I like to focus on conversion rate optimization first for four reasons.
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First, most of us think we need new traffic, what we actually need is more revenue. And more revenue doesn't necessarily mean paying for traffic. It can mean conversion rate optimization. Number two, it's easier to automate. So when you make conversion rate optimization changes, it's usually you do them once and you reap the benefits forever unlike buying new traffic. Number three, it's less expensive than buying traffic and number four, conversion rate optimization changes and improvements will improve the ROI of your ultimate ad buys.
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So when you do turn to spending money on buying traffic, you're going to have much better ROI if you focus on conversion rate optimization first. Can anybody tell me what 2% represents? And I say this as if we are all in the same room and you can raise your hands. I know you can't. 2% is the average conversion rate for commerce. And some of you might be above that, some of you might be below that but we can all agree that it's abysmal in the way most people attack that or address that is through 91 point conversion rate optimization checklists like this, and A/B tests and testing button colors and field forms and things like that.
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I am not a fan of this approach. Even at Karmaloop where we had one million people a month visiting the site we were not achieving significant A/B test results in any meaningful amount of time. What I do prefer to do is to stack my marketing and build out what I like to call a conversion rate mousetrap. And the idea is that any new visitor should be eligible for a certain offer from you whether they see your site, whether they see it in email, whether they see it on Facebook.
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In essence you're stacking and syncing up your marketing and I'll explain how. You see most retailers are like this. This is a process flow diagram. If you're not familiar with these, this is what's called a swim lane. It shows everything that happens on your site. So new cold traffic, not customers, new traffic comes in from the left hand side.
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The traffic is faced with the decision-- do you buy or not and 2% of them on average will buy and the rest won't. This is what most retailers have going on. And then you start with your A/B testing and you start with your on site improvements. Maybe you implement some testimonials and in a low price guarantee or you remove form fields, whatever.
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You might use the discount ladder that we talked about earlier in one of our earlier lessons. But altogether you might see an improvement in your conversion rate, might be a 10% improvement. But where you get the real results is when you stack on more swim lanes. So in this case, we sync up our email. So the 98% of those visitors who don't buy on their first visit, now you give them an offer to join your email list.
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You try to get them to opt in and if they opt into your list you send them an email welcome series, something that serves to build up trust and ultimately drive them to another purchase decision. If they purchase great. And if not maybe this is where you go a little more promotional. You present them with a discount ladder through email and then that discount ladder might drive them to another purchase decision.
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As you can see here, you're stacking your offers they're both in sync with what's going on the site. And if you add this swim lane maybe you get another 10% increase in your conversion rate. Well, it doesn't need to stop there. You can then sync up your retargeting efforts and your remarketing efforts. So there are going to be visitors who do not convert, who do not take your email opt in, and they don't they don't opt in your email list.
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Well, you can still target them on Facebook. You can add them to your custom audiences, you remarketing audiences, retargeting audiences and send them the same content you are sending them via email in the welcome series. You can provision that content on Facebook, drive them again to another purchase decision. If they purchase great.
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If not, then again you can be promotional just like your promotional in your email with the discount letter, you can be promotional on Facebook and try to get up an incentivized offer. And if you're lucky the potential customer buys and converts. So maybe you get another 10% increase in your conversion rate there. And this is the conversion rate mousetrap.
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It's when you sync up everything that's going on your site with everything that's going on in email and everything that's going on off your site altogether. If you get a 10% increase in each that's, a 30% increase in the conversion rate, ultimately a 30% increase in your revenue. At the end of this lesson, in the show notes you can download this PDF and get to know it a little better. But the general idea is, you're giving each potential customer the right offer at the right time, no matter whether she's on the site in email or on Facebook.
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And that in my experience works a lot better than A/B testing specific things and thinking one dimensionally. I encourage you to sync up your marketing and in the next lesson, we're going to talk about another big acquisition lever distribution. [MUSIC PLAYING]
