When it comes to lead conversion, internet-based businesses are at a disadvantage. A recent study found that these businesses have a 1% close rate compared to traditional companies’ 5-20% close rate. Why is this? Several factors are at play, including that potential customers can easily compare prices and services. This blog post will explore why internet-based businesses struggle to convert leads into customers. We will also offer some tips for improving your lead conversion rate!
Here are two significant reasons why internet-based businesses have a 1% close rate.
Potential customers can compare prices and services easily.
The internet has changed the way we do business, and it’s made it harder for online businesses to convert leads. Companies can rely on warm referrals and testimonials to bring in customers in a mixed marketing model (social media is folded in). But now, potential customers can find everything they need (or so they think). They can compare prices and services, find tons of free resources, and read reviews from other customers.
Unfortunately, it’s hard to trust what’s out there.
“Social media is king!”
“Award-winning customer service!”
“Top ten tips for doubling your rates!”
“Free report! Download today!”
According to a study by Edelman, only 47% of people trust companies today. When potential customers encounter your business, they’re already suspicious. They don’t know if they can trust you, and they’re not sure if you will give them the best possible service.
If you want to convert more leads, you need to build trust with website visitors, blog readers, and potential customers. It would help if you showed them that you’re a reliable company that will give them the best possible service. Always lead by nurturing! You can create helpful content, respond to reviews, and offer great value. With a bit of effort, you can increase your lead conversion rate and grow your company.
Social Media Marketing is not as effective for lead conversion.
Effectiveness depends. In the past, companies would pay thousands of dollars for a site. The assumption was that visitors would read through the about us, products/services page and then reach out with the contact us page. This isn’t so anymore.
When a company pays for a social media ad, they know they must take the ad and lead it to a “lead page.” My coach used to call lead pages an “ethical bribe.” We give a valuable resource in exchange for a visitor’s email address (white page, audio, video, checklist, etc.)
The issue is that the call to action must be concise, attractive, and hit at the right moment. Even when these factors are taken care of, there isn’t a guarantee that people will pop in their email addresses. Social media marketing is often a black hole unless we hire experts to help us understand the analytics and guide the way.
Also, there are too many options and not enough buyers
The internet has created a global marketplace where there are billions of potential (web) visitors but only a limited number of buyers. With so many businesses vying for attention, it’s challenging to stand out from the crowd and get noticed.
Don’t forget. Buyers are overwhelmed with choices.
With so many businesses and products, alternatives can easily overcome buyers. They may not know where to start or may be afraid of making the wrong decision.
Buyers are anonymous. How can you cultivate a relationship?
On the internet, buyers are anonymous. This makes it difficult for lead nurturing. It’s harder for all businesses to build relationships with their customers, and it’s also difficult to get customer testimonials.
Here are four ways to improve your lead conversion rate
First, always focus on the “know, like, and trust factor.”
The “know, like, and trust” factor is often used in marketing to describe the three elements necessary for a customer to buy a product or service. Customers need to know who you are, and they need to like you and trust you. If you can build trust with potential customers, you’re more likely to convert them into paying customers.
Get to KNOW your potential customers.
Take the time to learn about their needs and pain points. The more you know about them, the better you’ll be able to serve them. Too many of us neglect the value of a one-to-one conversation. When you have visitors who like your latest blog post, say thank you! Ask them what else they’d like for you to write about.
Build relationships with potential customers.
Show them that you’re a TRUSTworthy business that cares about their needs. When you reach out, keep aiming for feedback. Sometimes the tips we take for granted are of high value for your visitors. Make sure to share as much as you can on pages. Create high-quality checklists or resources to help your visitors.
Offer a great customer experience.
Ensure that your site is easy to use and that your products and services are highest quality. People who are attentive and listen are very LIKABLE because you can feel they genuinely care. If you can offer a great customer experience, you’re more likely to convert leads into customers.
Lead conversion in a nutshell.
In my next post, I will share with you three ways your tech can help you build the “know, like, and trust factor.” For now, I’m curious to know, do you have an internet-based business that would like to increase sales and improve your close rate? Let’s talk! Please apply for a free consultation using this link here. I’d love to help you look at your return on investment to see how I can best help.