Forum Moderators: buckworks
They have a 0.4% conversion rate and I'm wondering if this is just ridiculously low or something that can happen. It's an industry with products ranging from $300-$1000. The terms are very detailed and targeted.
Anyone with suggestions? Should I go to them and say you need to change the prices?
Usually the buyer needs to consult/confirm the purchase with someone else.
Generally at that price range, you can expect around 70% of the buyers to come back serveral hours or a day later before making a purchase.
If you have a daily budget in Adwords make sure that is enough to cover constant display of your ad.
Make sure there is something about the website that captures the prospects' attention. Low price guarantee, [ this one is a story in it's self ]
etc . . .
There are other things that can increase the conversion rate of higher priced products, however these vary on the product type.
I.E.Tech products should be handled differently than general consumer or home products.
At 0.4% conversion and your high prices I suspect your profitable arent you?
The problem maybe that you're using keywords that get the visitor excited enought to click but the site doesn't live up to expectations. Alternately, the site or cart themselves maybe turning the buyer off and preventing the conversion. Do you have a sense of what the conversion rate was before you took over?
You should also take a moment to read: [webmasterworld.com...]
U cannot judge the conversion rate in isolation. Infact with such a high value product ypur conversion may be good. See for example as u said your conversion rate is 0.4%. so out of 1000 clicks 4 sales happen.
Now yor cost (supposing cpc to be 10 cents) is
1000* .10 = $100
and four sales happen so Revenue
4* 700 =$2800
Profit
$ 2700
I must say v v profitable.
Dont you think so?
i suggest dont go just by the conversion percentage but calculate your profitability like this.
I would be very happy to know weather this helped.
Sounds like a winning formula to me.
If bears5122 is happy with the ROI on that conversion rate then he/she needn't worry about this. But since they did ask, I suspect they aren't too happy about it.
Maybe this conversion rate is normal for the industry.
We can probably dissect this further if it's a problem of excessive shopping cart abandonment, excessive clickback rate from homepage, etc...
Using only Adwords, my conversion rate so far this month for a range of items costing around £250-£300 is 0.05%! And I'm making a good ROI/profit. Now if I was getting 0.5%, I would be making serious money for very little effort!
[webmasterworld.com...]
[webmasterworld.com...]
[webmasterworld.com...]
I think we agree that the market sector you're in will largely influence the rate of conversion. Where we differ is in what is considered an acceptable conversion rate. IMO I feel 0.4% is low largely because I imagine an industry with that level of conversion that I couldn't improve it to at least a 1.something. As I noted, if you're happy with that level of conversion then that's what counts.
This subject has really had focused my attention today - so much so that I've changed a major area within my site which should affect conversions in a positive way - if it does, I will report back!
In terms of CTR from Google, I seem to be achieving a consistant 14% which is very high (acording to previous threads)
Although any product peddler is always involved final stage (purchase) of the buying cycle, can you be involved earlier by providing all the information a buyer needs to make the purchase?
My average sale is $85. The products I sell range from $12 to $150. Since last October my 'click to sale conversion' rate is a steady 4% and I'm bidding $1.00 per click and currently budgeting $2k per month.
The only value I get out of these programs is 'return' customers. If any of the conversion customers become repeat customers then that's a 'win' for me. Otherwise 4% margin really doesn't justify this for me especially when I factor in my time to manage these programs.
$1 is way too much per click in my opinion. Why dont u reduce it and see.
Well that get's me to the top 10. I want to remain in the top 10 and I'd have to increase my bid by 50% to get to the top. So if I cut the bid wouldn't I be hurting myself?
Another thing to note is now I seem to have built some traction for Adwords stats all of the "make money through affiliate/Adwords" programs are raising the prices so we have gone back and revisited organic SEO with the same keywords. Most of those keywords had very low rank on G and were easy to climb quickly.
I would suggest looking around internally or talking to some of the people that have purchased from your website. It has helped us tremendously.
btw our average order size in around $60.
Thanks for the feedback... I'm going to try new keywords entirely after doing some research.
Also Overture gives a lot better "finding variants" than G does. Giving you 2 and 3 keyword terms that when put in as phrase matchs on G can give you a better bang for your buck. Sorry that's not very clear...an example would be instead of using textbooks for a keyword ($1.50 and above) "McGraw Hill textbook" will give you a much better click through and buy through rate even though the ad won't be served as much. We worked really hard to break down as many phrases as we could. Overture was great too because we found that many of the variants didn't even have any bidders on them...cheap.
Good luck.
