Conversion Rate Improvement

Conversion Rate Marketing: What is it?

Conversion rate marketing is the practice of improving the effectiveness of a marketing message. It is most commonly combined with direct response marketing. So before we define conversion rate marketing, let's take a look at:

What is Direct Response Marketing?

The goal of direct response marketing is to elicit an immediate action from the reader. Perhaps the goal is to sell a product. Or compel the reader to complete a registration form. In fact the following things are all examples of where direct response tactics are used:

• Direct Sales: The goal is to compel the reader to make a purchase.
• Lead Generation: Various techniques can be employed to attempt to convince the reader to give up personal information or accept sales literature.
• Event Registration: Here we would like to convince the reader to commit to attending an event.

These are just three examples. If you think about it, there are hundreds more. In each case, the goal is to convince the consumer to take immediate action. Doing this requires a solid sales pitch. And a great close.

Online, this sales pitch is presented to the reader in the form of a web site or landing page. See Using a landing page to increase response The web is arguably the ideal medium for direct response marketing. The reasons are simple- it is very easy to try new ideas. Costs are low compared to traditional marketing. And most importantly, it is far easier to track results.

In traditional marketing, direct response tactics can be seen everywhere. Buy a copy of the Wall Street Journal. Many of the ads in the Journal are pitching specific items. The ads attempt to sell all the benefits of a product, and even close you with a limited time offer and 800 number to order! Next time you flip on the television, watch for ads that are trying to sell the latest CD collection, reruns of your favorite television show, or the latest exercise equipment. These ads invariably end with a blue screen and that familiar voice explaining how you can buy in three easy payments of $19.99.

So what is conversion rate marketing?

Your conversion rate is the percentage of people who your advertisement sells, compared to the total number of people exposed to it. You may have heard of the "sales conversion rate." Well the conversion rate is the same thing, only not necessarily with sales.

Conversion rate marketing describes tactics that should help improve your conversion rate.

There are a couple prerequisites to improving your conversion rate. The most obvious is that you have to know what it is and be able to measure it. You can't improve what you can't measure.