How to Optimize Your Conversion Rate

Date: May 12, 2021
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How to optimize your conversion rate

So many business owners focus on just getting more new leads into the business but fail to properly convert those leads into sales. When you have strategies to optimize your conversion rate from your existing leads, that can make a big difference in your results and profitability.

Watch this video for 3 effective ways to increase your conversion rate:

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Video Transcript

Okay so we’re talking about conversions here so once you get those inquiries, how do you convert more of them?

Because once again if we just imagine if you could just increase your conversion rate by 50%, it’s not that hard right? Compared to say spending like seven times the money on ads, for example, right? So how do you increase your conversion rate by 50% or more?

You know, you could hire a better salesperson. You could get some training in sales, right? And instantly you could like increase your conversions by 50%, right? That’s not that hard, right? So but let me give you some other ideas here, okay? So let’s get into it, okay?

Sales, which is one of them. And we talk about payment plans as well. Okay.

So because sales is definitely, you know, get some sales training. I’m not that great at sales to be honest.

I’m good at marketing but when it comes to sales you know I have all this internal resistance. I have all this BS and my brain playing out on, you know, getting rejected and all that kind of stuff which I’m totally aware of that I need to personally work on. So I think it’s a very psychological thing with sales as well. And then, if like people don’t have money, you know, you feel bad about selling to them and all that stuff, right? So I’ve got too much junk in my head, that I need to clear up personally.

Okay, second thing we’ll talk about payment plans and third thing we’ll talk about guarantees, okay? So those of you who have been here for a while, you know the power of guarantees but we’ll go into each one of these a little bit deeper today, right?

Okay, sales. Better sales training. That’s important, you know and I think one of the key things, you know I was just talking to my friend the other day, right? About when I was in property development back in Australia years ago, one of the key things I did which was a milestone achievement was that I managed to raise about 5 million dollars from investors to invest in our projects, right? So that’s 5 million Australian dollars. So that’s about 15 million ringgit. So that’s quite a substantial sum of money, right? By any accounts, right?

So, I think the key elements there was that first of all, you know, I believed in what we were doing, okay, I believe in our product. In our developments, okay? So I think that’s one of the key lessons. I’m not a sales guru, by any means. I’m just sharing my story. You know, one of the key elements is that you really truly believe in your product. Like they often say, the first person you need to sell to is yourself, right? So if you’re not convinced of your own product or your own service, then you know you can’t sell it to anyone else, you know, people can smell it, right, if you’re not confident with your product or service, okay? So that’s the first thing.

Second thing why I believe I was so successful in raising the money was that you know, I actually painted a picture of what was possible, right? So I said, okay if you invest in this project, our projected returns are this much, right? And we have all the sales data to back it and we have all the you know, all the information or the research to back up what we’re saying. So I think that’s really important that, you know, you obviously have your data and research to back up what you’re saying as well, but also paint that future picture of what it’s like after they have purchased your product or acquired your service, okay? So I think that’s the second important element.

So yeah, I think you know that’s you know, I think it matters less like, you know, oh you have to say this, you got to follow a certain formula. Personally, I think, you know, if you truly believe in your product, you truly believe it’s going to benefit them, and you have that, in a sense, that desperation because, you know, for us it was like if I don’t raise the money, our projects are not going to get off the ground and we’ll be in trouble. That kind of scenario.

I think that’s also important to have those goals in mind as well, right? So those are the three things that I can share to you from my, you know, limited sales experience that I hope will benefit you. Okay, so let’s move on.

And the other thing is, you know, often we think of sales as a once-off event, okay? We don’t have any follow-up system, like, okay, people come to the webinar and then if they buy or don’t buy and if they don’t buy, we don’t follow up with them or we have a sales meeting and then after that we might drop an email just to follow up and that’s it, right? But sometimes you know, people are just not ready at that point in time or they’re just gathering information.

So constantly having that follow-up system is important. Whether it’s like, you know, you know, they say you need like 10 points of contact or 14 points of contact before you make a sale or whatever it is. So, you know, plan out those 14 points of contact, right? Deliberately. I know it sounds like a lot of work and it can be a lot of work. But think about it right, if you can increase your sales through that just by 30%, 40%, which I think it’s going to be more than that. If you have a good follow-up system, right? You will convert much more of your sales, okay? So have a think about what you can do there.

So, that’s where you can also combine marketing with it as well. For instance, you know, often after a sales meeting, you know, one of the things you can do is send them a package with information, with testimonials kind of thing, you know, even a physical one, right? Because email nowadays, everybody’s going to email but what if you’re a little bit different? So we were talking about having that follow-up system. So have that deliberate follow-up system to keep following up on prospects that don’t buy initially. okay? As they always say, the money is in the follow-up, all right?

Okay, so as I said, I’m not a sales expert, so I’m not going to go too much into that, but the second thing to consider to increase your sales conversions right now is to create payment plans, okay? For example, if you’re selling something, right? Why not have a $1 trial offer, okay? So if it’s really hard for people to buy your $500 product or $1000 product up front, Let them try it out.

Like a good example, it’s like some of the pet shops, right? Where you kind of like, hey take home the dog for the weekend, right? And if you don’t want the dog, bring it back on Monday. Guess what? 90% of them get attached to the dog and they buy the dog, right? And that’s, that’s how it works.

So, yeah, let’s make it like a very low-risk way to get people to go in, alright? To make that decision. Offer 3-pays, 6-pays, right? Often, I guess because I work a lot in the information space with a lot of coaches and I know that when they have multiple pay options especially in the space where I’m in, they actually increase the number of conversions because people are saying well, I can’t afford like $1,000 up front, But hey if I’m only paying $350 a month, I’m thinking, well, maybe by the second month, I would have made back my money from this program that I can also pay my third month, right?

So it’s kind of like giving them that option of multiple pays is really going to help, right? And some of you are saying, oh well, what if the guy runs away or you know whatever? I mean that’s a distinct possibility, they could run away. Obviously, you need some kind of contractual arrangement and even like PayPal, right? They have a thing where you can automatically debit their credit card every month, right? So there’s ways to go around it, I won’t get into technical details. So 3-pays, 6-pays and so on, all right? So okay, let me move on.

Okay, so the other one is pay on results, right? So this is especially valuable if you’re, say a consultant or something, right? So many of my clients, for example, they pay me on results, right? So obviously I don’t take on everyone because then, you know, I’ll be wasting a lot of time working with people that can’t get results. So I only work with people who have proven results and, you know, we do their marketing and, you know, we take a percentage of everything that comes through. So for me that has made my sale much, much more easier, right? There’s no pressure saying that okay you know, every month you have to pay me say $5,000 whether I perform or not and people are thinking okay let me compare this guy with this other guy… blah blah blah.

But when I come and say, okay, well, you know, you just pay me on results. You’re spending enough ad spend and, you know, I know that, you know, I will roughly make X amount of money if I perform well. So I’m happy to take them on. And for them it’s a low-risk way to engage my services as well, okay? So, you know, I think, you know, for you guys, especially if you’ve got a unique product as well, I think it’s more like, you know, consultants, coaches, kind of thing. If you can get paid on results, you will see that you can convert a whole lot more clients than you normally would. So, any service-based business, I think that works as well. All right.

So okay, let me know if you got any ideas that you can actually implement in your business right now, from these two slides. Just type in the chat, please. All right, no ideas here. That’s alright. Okay. Okay, so we do have one or two ideas coming through. Or questions actually.

How do you find clients to pay on results? It’s just a matter of pitching them the right way, right? So instead of me going up to them and say, okay, look, I’m going to charge you $4,000 a month or whatever it is. I would say, okay, look say for example, if I know that they’re spending already on adspend like say $20,000 a month, right? and they regularly make sales of like $60,000 a month for example, right? So I can figure out, well you know, if I get like 10% of that, that’s $6,000, right? Every month. So I will go up to them and say, okay, look. Sure. Let’s work out a deal and let’s go, you know, I’ll just, I’ll just, you know, get a payment from you every time you make a sale, right? Okay so yeah, I hope that explains the pay on results thing for you. Okay.

So obviously, I don’t take on anyone on pay on results. If they’re paying like spending $1000 a month on ads, I’m not going to take them on, right? Minimum requirement will be they’re spending $20,000 USD on ads every month or something like that before I take them on and say, for example, if they’re not spending $20,000 a month, they’re spending only $5,000, then I’ll say, well, you know, I’ll have to charge you a retainer on top of that, right? So I’ll take 10% plus a retainer of say two, three thousand dollars, okay? Okay, so I hope that makes sense.

Okay, so the third one is risk free guarantees So, we’re talking about conversions now, right? Getting more conversions. So, one of the key things is risk-free guarantees. So the simplest one is the 30-day or satisfaction guarantee, everybody knows that, right?

Now, the second one is a results guarantee. So I’m working with one of my mentors now to possibly devise a program, right? So this mentor of mine is based in Canada and basically, what we’re doing is we’re creating a program where it’s like $100,000 USD, right? But people don’t pay me that $100,000 until I make them $1 million, okay? So that’s the results guarantee, right? So if they make sales of $1 million through their virtual events, through their webinars, then they pay me $100,000. So you know, obviously that becomes kind of like a no-brainer, right? If I’m giving out a $100,000 and I’m getting $1 million in return that becomes a no-brainer kind of offer, right? So that helps to increase conversions.

Now with the $100,000, obviously, you know, it’s not you know, paid all at one go at the end so I will collect some money up front maybe 10, 20 thousand dollars up front, right? Because you know, first of all, you want to weed out people that are just completely just wasting your time and they, you know, don’t have a real desire to actually do it, right?

And then as each milestone is hit, then they pay me more money each time, okay? So, that’s how a results guarantee can work. But for you guys, it can be a completely different thing, depending on what you sell, right? So have a think, what kind of results can you guarantee? And the best thing about having a results guarantee is that you can also impact the 4th element which we’ll talk about because when you guarantee results, people are willing to pay more, okay?

So say you were interviewing two people, right? That were doing say, for example, SEO. All right, one says, okay. I will help do my best to get you on the first page of Google. The other one says, I guarantee you will get on the first page of Google or you don’t pay me, right? First one charges $2,000. Second one charges $10,000 but has the guarantee, right? Which one do you go with, right?

If you are like, you know, say money wasn’t an objection, you would go with the $10,000 one because they provide a guarantee and you don’t pay them until they get results, right? Which totally makes sense, okay? So that’s the power of having a results guarantee is that you can also increase your price as well.

Now, the last type of guarantee that I will share is a reverse guarantee. Okay, now this is a big ballsy guarantee, okay? Which I first saw with Frank Kern, which is the famous internet marketer.

So this guarantee basically, what you’re doing is saying that, hey, I’m gonna guarantee you results or I will pay you money out of my pocket, right? So in the context that Frank Kern used it was that okay, you come for my one-hour consultation. If you don’t get at least enough ideas to make like $5,000 I will personally fork out $500 from my pocket and give it to you, right? So that’s a big ballsy guarantee, right?

So you know, I think this actually helped him to get a lot of people on the phone call that otherwise wouldn’t have got on the call, right? So I think you know this is like you know when you’re doing a consultation call or something you can use some of this but also think about how you can use these ideas in your current existing business.

Like, okay, you try this product. If it’s not better than your existing one, I will take back the product and I will give you 200 bucks or whatever it is. Okay. That is a ballsy reverse guarantee. All right.

So who’s kind of freaked out by these guarantees? Type it in the chat box.

If you’re kind of like going, oh, I can’t do that in my business. Just type in chat box. Let us know. Okay, who’s a bit freaked out? Just type in the chat box with these guarantees, or can you guys come up with a guarantee for your business? Just type in the chat box. Guys, I need some more interaction please. Okay. Do you have a guarantee?

Let me just have a quick look. What’s your litmus test validation recipe? Yeah, so Yeah, Iqbal, I can’t answer for you. But for me, you know, it’s you know, the pay per result thing, it would be based on the amount of ad spend and based on the past results.

So if it’s a brand new startup client, I wouldn’t take them on a percentage basis, right? So I would need to look at their previous ones. Previous results and basically decide based on that, okay? So if they if they are not If they don’t qualify, then I will have to charge them something.

Okay, so guys once again the 30 day money back guarantee is a little bit standard nowadays, right? Especially with the internet. So one of the key things to maybe differentiate yourselves is to offer 45-day guarantee or 60 day guarantee or if you know that your product really, really works offer them a 12-month guarantee, right?

See, the thing here with guarantees is that you know, you will increase your conversion rate, right? Ultimately, that is the key thing. and if it scares you, that means it’s good. Why? Because if it scares you, your competitors are not going to do it, but if you’re doing like a guarantee that you’re like going, Oh, I’m really comfortable with this guarantee, then everybody else would do it. And you’d be copied really, really fast, right?

So that’s one of the key things about guarantees. So Iqbal, yeah, the cost of ads is still paid by the customer, but if you’re really ballsy, obviously you take up the ad costs as well and you take a larger percentage of the profits, right?

So it’s but in some cases, what we’ll do is like me and the customer will kind of go in and say, all right, you come up with the ad cost and after deducting ad cost, we split the profits. Okay, so that’s one way to do it as well.

All right, but once again, it depends from industry to Industry because in my industry we can see the results straight away where some other industries that might take a longer time to see the results, right? Because it might have a six-month sale cycle or something.

So then that could be a problem. So yeah. Then you need super tracking software like Hyros or something like that to be able to track it properly. Which we do for some of our clients actually. Okay so let’s move on.

Okay, so this was a really good guarantee that I saw. This Casper. Like this is a mattress, right? So imagine you letting your customers sleep on the mattress for 100 days to try it out for free. Now, imagine someone slept in it 100 days. You take it back. What’s it worth, right? No one else is gonna buy it unless it’s like half price or something, right?

So this is a really ballsy guarantee because it’s like, okay, we’ll give you 100 nights to try it out for free. If you’re not in love, we’ll pick it up, do all the packing, give you a free refund, and they will actually… see, they donate the returned mattress. So it’s like a huge cost for them, okay?

So, want to know how much this company is worth? Who’s ready?

Okay, so Casper Marketing: How a mattress company went from zero to $750 million in 4 years. right?

So, that’s the power of a guarantee, guys. So, you know, the power of a guarantee and the power of a guarantee to actually increase your conversion rate. Okay. So that’s yeah, I don’t think I need to say more about guarantees, okay?

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Terence has been passionately practicing and teaching marketing for 20 years. Since 2014 when Radical Marketing was set up, Terence has been helping business owners, speakers and experts from all over the world to fill up their seminar and webinar rooms with attendees.

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