The largest cost and concern of an internet business is customer acquisition; traffic. Both quantity and quality of traffic directly determines the succes of an internet business. By the fundamental nature of traffic to an online Business,one cannot afford to waste it.
So how does traffic wastage occur?
Customers are acquired by driving prospects to your virtual point of sale. At this point, usually a web page, the prospects are engaged to take the desired response. The desired response varies from change of attitude for a newsletter, to purchase of a product for a sales webpage.
This desired response occurs towards the end of the Pschology of Search. Prospect searches particular information, they see something that interests them, they view it and then they decide its relevance to them. They then take the most appropriate action, click the back button or take the desired action.
Generally speaking, Click through Rate (CTR) average 2% for Internet Marketing. This would be the average for Search engines, Pay per Clicks (PPC) all the way to Free classified Ads and banners. Of course for each specific media it varies significantly. However for illustration purposes lets use 2% CTR.
So, only 2% of prospects flagged down stop to give attention to be engaged. These prospects are interested. Of every 100 of this interested prospects, only 1% may be converted to take the desired response the first time.
Eric Mollink of Businessmaker.info had a real experience of this numbers. He says , they made a killer grab attention email which sent the prospects directly to their website. The mail was sent at midnight and by morning the had 400 hits, a 40% response rate. But no one signed for their program. And there was no way of knowing who the visitors were. had they been able to follow up with the 400,based on previous records, they would have closed at last 30% of the 400.
In essence, taking the previous assumed example, for every 10,000 people that see an Ad or Listing, only 200 will give attention enough to engage them. And the CR would stand at 1% i.e 2 sales or subscriptions.
After being able to get the attention of 200 prospects, 198 will be lost.
Reasons for not acting as desired vary widely. Though it would be correct to say a number were not sold. Meaning some prospects were convinced but not converted. They consequently did not respond as desired due to overcome-able objections. Those converted are those in a sellable state of mind at the time.
Remember sales is 90% emotion and 10% logic. If both strings are not methodically, systematically and sufficiently harped on, there is no sale.
Unfortunately internet presentation are unlike face to face sales presentation, where the pitch is actively adapted to the prospect's moods(emotions) and objections(logic).
Therefore huge looses of engaged prospects will always occur due to this inflexibility. And once a potential customer is lost, they are gone, probably forever. You will then have lost precious traffic. To get them again, if ever, you will need to pay for them again, if using PPC.
Repeated contact or follow up on prospects may actually increase the total CR and consequently sales. Follow up allows a 2nd, 3rd... chance to find a prospect in a sellable state of mind.
For first time buyers, it gives 2nd ,3rd... chance to sell them again on a different product. This increases the value of the customer from one product a year to two products a year.
The best means of follow up in the internet is email. A mailing list of your prospects makes it cheaper to market to them a 2nd, 3rd... time. It also increases the chances of selling more of them, a higher CR.
With this kind of opportunity, advantages further reflect on profitability. This is simply due to the fact that there is no
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