Nowadays, people are talking about generating traffic as if it’s the Holy Grail, and entrepreneurs are so focused on how they can get more traffic, they lose sight of the long term goals. Customer acquisition is step one.
Of course, the more traffic you get, the more chances of sales you have, but many entrepreneurs have a process that likens itself to a wholly bucket where the traffic comes, but only trinkles convert into sales. In this article, we’ll talk about how to increase conversion rates in your business by understanding customer beliefs and psychographics.
- 1 My Story
- 2 Some Examples of High Conversion Rates and Low Traffic
- 3 Examples Target Markets
- 4 How Do Target Audience, Psychographic, and Demographic Fit Together? (with Psychographic Profile Examples)
- 5 Define Psychographics
- 6 Psychographic Profile Examples
- 7 Psychographic Segmentation Examples
- 8 A Playlist on How To Increase the Conversion in Your Business By Merging Demographics and Psychographics
- 9 Final Words on How To Increase Conversion Rates in Your Business
- 10 Now, it’s Your Turn…
On February 1st, I started this website. I was able to get it up to 504 pageviews on the second day which was shocking for me.
The bad thing was even though I had an email optin in my widgets, one on the end of each of my blog posts, and clickable links throughout my content, I was having less than 0.3% conversions onto my email list (which is my #1 goal for my website) and I was having low click-thru-rates to the offers I was promoting.
Originally, I was reading people in the school of thought that said “you need more traffic”, and I thought traffic would be the medicine until reading about other marketers who had less traffic and higher conversions because the understood how to increase their conversion rate by understanding their customer beliefs and psychographics.
Some Examples of High Conversion Rates and Low Traffic
I know this whole philosophy contradicts many marketers’ teachings because many people are okay with a 0.2% conversion rate or a 1% conversion rate. They may have a decent flow of traffic, so even with 0.2% conversion rate, they can be happy with their income, but in my previous post, we talked about being preeminent and being the fiduciary to our customers. At 0.2% conversion rate, that is a sign that 99.98% of the audience is not being served well, wouldn’t you say?
When 99.98% of the audience is not being served well, then you have low retention rates, higher unsubscribe (or churn rates), and overall customer dissatisfaction. They came into your circle expecting to receive solutions to their problems, and if you settle with a 0.2%-1% conversion rate, you’re being careless about 99.98% which is a big fail.
The income may be great, but we agreed that we’d be on the strategic level and if you’re only concerned about the immediate results (ie. the income), you’re stuck on the tactical level. Go back and read 7 Lifechanging Tips From Jay Abraham (the 9 Billion Dollar Man) on How to Increase Customer Loyalty if you’re not understanding what I’m referencing here.
Here are some great examples of entrepreneurs who serve high percentages of their audience well:
In his article, Sphere of Influence, Email Marketing Legend and Affiliate Marketer, Andre Chaperon, talks about the contrast between two common schools of thought about conversion in marketing circles.
Some people teach high volume marketing and conversion where you have to get lots of traffic to have sales. The other school of thought is where you create high engagement to increase conversion rates which can equal or surpass the high volume school of thought.
Remember the statistic that it costs on average 5x more to acquire a new customer than it does to keep an old customer?
The high volume school of thought is taught in the Product Launch Formula where simply by aggressive persuasion to large numbers of people, you get quick sales. The unfortunate thing about applying models like the product launch formula, often times, you miss connecting with the customer, getting to know them, and connecting on a personal level.
If you miss the engagement connection with your customer on a belief level, you also miss huge opportunities for long term relationship, which will be seen in your churn rates and retention metrics. Even worse, some people black list you in their minds as “A Spammer”.
Chaperon says the sales spike is like crack cocaine to entrepreneurs who use those methods though. It’s a longstanding adrenaline rush. You have to gather a big team, prepare, prepare, prepare, and do so many steps that get people a rush like a crack hit.
He talks about how many entrepreneurs use vanity metrics saying things like “We generated $1.2 million from that launch” when in fact, 20-50% goes to refunds, payroll still has to be paid, and other expenses subtract from that. Why hype the high volume, largely hyped methods when their ineffective at harvesting intangible assets (enjoyment, long term connection, and genuine legacy building)?
You and I want more than quick fixes and sales spikes likened to crack hits, right? We want genuine connection which can’t be achieved by focusing on the “instant tactics” of business. We have to focus on the long road strategy.
In contrast, Chaperon was able to generate $55,739.11 in profit (after expenses and refunds AND with only two affiliates who ASKED–weren’t recruited–to be affiliates) within 24 hours by maintaining high levels of engagement with his clients.
He did the work over time and created such a close connection that one his birthday, one day only sale, BOOM, he was able to generate equal or more than a PLF launch. He connects to his customers on a belief level using the Strategy of Preeminence as the foundational premise for how he sees his customers and how they see him.
Miles Beckler and “Content is King”
Similarly, Miles Beckler has also been able to achieve very high conversion rates by using the Strategy of Preeminence. He is a prolific creator who challenged himself to create and publish content everyday for 120 days.
In contrast to the many entrepreneurs who tell you to give a certain amount of information, then pose a call to action, Beckler decided to give as much as he knows on each peice of content he creates. He doesn’t do the whole “give away fragmented information” and other bait and switch tactics.
As a result, Beckler has created an audience with high trust, one who sees him as an advisor who has their best interest. When he recommends products or services, he has high conversion rates because of the standard of free value he’s given away.
In contrast to the previous two examples, Shane Melaugh was a case study I shared in a previous article. He was able to maintain a consistent flow of traffic, but increase his sales 400+%!
Secondary to creating genuine relationships, there are methods to spike sales by using limited time offers, scroll mats, lead capture pages, and countdown timers. With 200-300 visitors per day, my email signups went up from 1 per day to 6 per day after adding the Thrive tools onto my website! I highly recommend the Thrive Themes tools to increase conversion rates after the groundwork of preeminence is laid.
Kyle & Carson and Servant Leadership
Kyle and Carson are two amazing marketers with a longstanding career of impacting many people and teaching them how to build online businesses. In an industry where there’s alot of dishonesty, bait and switch tactics, and selfish people aimed at “getting” rather than giving, Kyle and Carson have went against the grain.
They exemplify preeminence by giving so much away for free without asking for a credit card, and with the option to stay free forever. Because of the value they give for free and their continual engagement with their clients (free and paid), they have built a highly engaged audience with high conversion and retention rates.
Examples Target Markets
Before going further into how to increase conversion rates, we need to lay the groundwork understanding of how to define your target audience. Your target audience is going to connect with your niche selection, but it will segment it even further.
Some target audience examples are:
- Identifying a market by geography
- Marketing by age
- Markets by Gender
- Combining Demographics
- and, when you want to get into applying the strategy of preeminence, you also want to market by psychographics
If you’re unclear about your target audience, take this free training for more on How To Identify Your Target Audience.
How Do Target Audience, Psychographic, and Demographic Fit Together? (with Psychographic Profile Examples)
The target audience is a combination of traits. There are many external traits that are important. For example, you may not want to market snow plowing services to people in Saudi Arabia, right? So, it would be important for the snow plow company to be realistic about who their target audience is.
They may have a target audience like:
- Adults 18+
- Able to make buying decisions about real estate
- Lives in location with snow
- Has difficulty or no motivation to plow on their own
- and so on….do you get it?
While demographics are important, to create a engaged audience, you have to know more than where they live, how old they are, and so on. You have to get into psychographics.
In his article, 3 Psychographic Gems, Neil Patel defines Psychographics as:
The study and classification of people according to their attitudes, aspirations, and other psychological criteria, especially in market research.
He says “informed marketers” (which you and I are) try to learn everything they can about their customers including their behavioral characteristics, geography, and psychographics.
Psychographic Profile Examples
After you’re clear on your target audience from a basic standpoint, you have to go beyond what they look like, where they may live, what they may like to wear, and go deeper. Here are some psychographic examples that can help you go deeper into the psychology of your target audience:
- Do they prefer the “system” or the familiar route or do they want something different?
- What beliefs do they have that make them curious about your product or service?
- What beliefs do they have that may stop them from purchasing your product or service?
- Could they be confused about how your product or service stands out in the market?
- Could they believe a premise that makes your product or service not “click” as it should?
- Marital Status
- Geographic location
- Ethnic Background
Psychographics are personality, values, attitudes, and core beliefs. Beneath the money and product exchange in business is an intangible exchange of beliefs. The offer you (the entrepreneur) gives should clearly articulate a belief like, “My product or service will offer you (the client)…”.
From the offer, the customer has to be presented enough information to agree with the belief you’re articulating in order for a conversion to be made. The clearer, more articulate you are in articulating the belief and supporting the belief with successful product and service delivery, the more conversions you will have, and the more you’ll be able to scale.
Even further, if you can future pace your audience, and understand where they want to go, map the path there, and clearly articulate that…..you’re doing something VERY POWERFUL.
Psychographic Segmentation Examples
Now, there are tools that you’ll need to use to capture psychographic data about your customers and the tools will vary depending on your business model. Many informed marketers who use internet marketing as their marketing strategy use tools like:
- Heatmaps and on-site recordings to analyze real-time data
- Conversion Optimized Themes
- Surveys and Quizzes
- Membership sites
- Email marketing with tagging and segmentation options
- A/B Testing for headlines, optins, and other copy
- Optimized Landing pages
- and, Scarcity marketing for intermittent offers
I use Thrive for landing pages, digital course creation (you’ll see soon), surveys and quizzes, conversion optimized themes, scarcity marketing like countdown clocks, testimonials, A/B testing, and optins. They have a powerhouse suite!
Some people are using Deadline Funnel ($37+/mo), Click Funnel ($139+/mo), Leadpages ($79+/mo), a Premium Theme ($50+), Teachable, and other plugins and off-site hosted solutions, then STACKING UP THE EXPENSES! $257/month in expenses?!!! Ouch! For a modest price ($228/year!), Thrive Theme offers everything Clickfunnels, Leadpages, and Deadline Funnels has plus more.
Heatmaps and Website Recordings?
When I got into traffic generation (my 504 pageviews on day 2 of this site), I quickly saw a conversion problem when I had 0 email signups. From there, I wanted to know, “Why aren’t people signing up for my email list?”. I could guess and guess and ask others and hypothesize, but doing that was shooting in the dark.
I found Hotjar records the activity of site visitors, so I could see if there was a common place where they were bouncing or why they weren’t signing up. Once I watched the video recordings of their interactions, I noticed common problems like how they weren’t even scrolling to the optin and how my links were not bold enough colors so they were scrolling right past them.
Email Marketing WITH Tagging
To engage and learn psychographics even further, I use Convertkit’s tagging features. I’ll be scaling up my use of Convertkit shortly to learn more about the How To Entrepreneur readers, but for now, I’m fairly new to this, however, I know I can scale the features of Convertkit for a little while.
The tagging features are essential to move people from one potentially irrelevant list into another sequence that may be relevant to them, and Convertkit makes this possible.
From the use of tools like these, informed marketers are able to target demographics and engage with their audience on a deeper level to understand and cater to psychographics. You can see the effect of marketing to psychographics in companies like Facebook, Amazon, or Apple. They connect people on the demographic and psychographic levels and increase conversions drastically as a result.
A Playlist on How To Increase the Conversion in Your Business By Merging Demographics and Psychographics
Final Words on How To Increase Conversion Rates in Your Business
The goal of this article was to show how to increase the conversion rate in your business. If you have questions or concerns about this, don’t hesistate to leave them in the comments section. I’d love to help you out!
- If you’d like to learn from the best on internet marketing, I’d love to invite you to create your FREE account and join me at Wealthy Affiliate where I can walk alongside you thru your training program. Then, you can see for yourself what I mean about Kyle and Carson. How many multimillionaires do you know who interact with people (free membership or not)? Their a different breed, and great businessmen to learn from. You’ll see. You’ll learn affiliate marketing, advertising, content curation, search engine ranking, and so so so much more.
- If you’re in the pre-startup or startup phases of your business, I’d love if you’d enroll in my Free e-course “All About Affiliate Marketing here. It’s quite an aggressive program, but it’ll give you everything you’ll need to hit the ground running with your new business, and start making some money!
Now, it’s Your Turn…
What are your conversion rates like? Have you tried anything to increase them? What are your thoughts on the product launch formula or high volume bait and switch methods for persuading people to buy? How do you plan to go against the tide? Leave your comments, questions, and feedback below.