Conversion depends on “who you market to”!

Here’s a typical eCommerce scenario - 100 people visit your website but only 5 of them finally convert. Now you have two marketing options:

  1. You can spend a lot of money trying to get back people who did not convert, or
  2. You can dig deeper, find what’s common among the 5 who converted and then go after their ilk
Also for #2, if you are really smart, you can isolate the ones who show tendencies of becoming repeat buyers and put your might behind them.

Of course you can/should do both but if your marketing budget is limited (when is it not?), strategy#2 should take precedence. If there are people who are willing (or can be easily persuaded) to do business with you without demanding that you change your product/service/website, why not pursue them first?

(I’m assuming that your website/product/service is at least decent. If you have serious problems there then no amount of consumer targeting will work (in the long run)).

For a very long time, I found it hard to believe that there could be something very intrinsic (pre-disposition) to customers that’d make them do/not do business with you. I believed if you made the right product and marketed it the right way, most of your target prospects would do business with you. Apparently, that’s not true - it’s an established fact that regardless of how good you are, many prospects will choose not do business with you. Also, most of those who do become your customers will leave you over time and your going to have to (1) find new customers and (2) try prolonging the dis-engagement of your existing customers as much as you profitably can. The marketing ROI in both of these pursuits can be drastically improved if you carefully choose who you are going to spend your marketing money on. 


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