The number one reason why your conversions are so low is that your company sucks! Harsh to swallow but the truth often is. A smart company will realize their opportunities and take advantage of them instead of left scratching their heads.
78% of people surveyed in a recent poll said they believe it is very important to look up information about people and/or businesses online before deciding to interact or do business with them. [source]
If you have reputation issues you are losing sales and should hire an online reputation management company as soon as possible. How much business do you think you are losing to your problem? Let’s do some of the math so you can get a better perspective.
Here are some solid facts from a survey conducted recently. An overwhelming 31% of people said they have read an online review before making a purchase. Can you afford to lose 31% of your potential clients? A better question is how much of this is hurting your companies’ bottom line?
If you get 200 searches a day form people looking for your product or service it is doubtful you would convert all 200. Here are some factors that influence this decision-making:
People looking for the lowest price
People looking to see if your product is in stock
People looking for promotions
Maybe your price is within the ballpark range of your competitors but not the lowest price. You just weeded out 60% of those consumers that are price driven. Now you are left with 80 visitors and 71% are doing research over the span of a few days. This is general product research and doesn’t even touch upon your brand yet.
Now we are down to the 23 potential buyers of your product or service. Out of those 23 potential customers, a third of them will research your company online. They will be looking at reviews and googling for any negative mentions of your company. After working hard and getting these 23 potential buyers can you really afford to lose seven of them to negative reviews?
Let’s put this in financial terms so you can see how this is affecting your bottom line. We are going to use the very low price point of $19.95. If you are losing seven customers a day at $19.95 you are losing:
This is an extremely low-ball figure. If your company has numerous products like an ecommerce store you can easily multiply these figures. What is scarier is the hidden cost not in this formula like loyalty. The average customer is not a one-and-done situation. Over the life of your brand, it is more likely these potential customers will come back and purchase again. If even half of these potential customers would have been repeated buyers then add another $25,486.16 to that figure of lost sales, each year!
It is easier to convert more customers than it is to increase your search engine traffic. Plus, conversion is more within your control. Your companies’ reputation is the most important thing one has and should be protected at all costs.