The Secret Formula for Conversion

Lemuel Galpo
By
July 14, 2014 ·
The Secret Formula for Conversion

What is Conversion Marketing?

Conversion marketing is an eCommerce phrase that is used to describe the act of converting site visitors into paying customers. In the webinar, Dennis van der Heijden along with Matt Dombrow share their knowledge and experience in this particular area with the webinar participants. They talk about conversion and conversion rates. If one wants to have a deep understanding of the skills that are needed to make the right choice and to be able to produce a really big breakthrough in the conversion, they have to know how to progress faster through the conversion test and to continue producing at a faster rate and more often. One has to have their own ideas and to have all the data, before making any kind of decision. Fast decisions, without the needed information, usually lead to failure.

The Conversion Formula

There is no exact formula for conversion, but there are a few tips and tricks how you can make people become members and frequent visitors to your website. The first thing you need to do is offer the visitors something in return. 

The point of this is: what counts, is the customer’s perception of value. It is not really important how much the gift is worth, it is what the customers perceive as valuable. If the customer does not think that what you give them is valuable enough to give you, for example, their email address, you have failed in your plan to attract more customers.

The Four Options of Conversion

There are basically four conversion options:

  1. People can take whatever conversion action you are trying to get them to pick
  2. They can take an action with a competitor
  3. They can take an alternative action
  4. People can take no action at all
the conversion secret formula

These four conversion options can change at any time, but the foundation principle here is that increasing the perceived value of taking a particular action increases the likelihood of people taking that action. If you want to be successful in conversion, you have to take what you are learning from particular case study and figure out how to apply, or how to avoid in your specific situation. The simple equation is that you need to know that the highest perceived value + lowest cost to deliver is equal to the best incentive. So, the bigger the gap between the perceived value and cost of delivering generally will indicate a better incentive to use.

Understanding your Audience

You need to understand what you need to do to motivate your visitors and you need to know whether you should even use incentive in the first place. In some situations, people can feel uncomfortable referring a product to a friend, because that could sound like a product just out of goodwill. So be careful, if you offer money or something like that, people don’t actually feel good about that. So, you basically have to learn about practice or something in that case and you have to understand how and why that operates before just blindly applying that exact product in your own website. If you want to check out the entire webinar, click here.

Originally published July 14, 2014 - Updated April 01, 2024
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Authors
Lemuel Galpo
Lemuel Galpo Customer Content Manager who brings learnings in CRO and testing to the world.

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