Before I begin, I must stress that the most effective marketing secret is in remaining “remarkable” @thisissethsblog Why remarkable? Because it really is about creating an amazingly valuable product or service that people just can’t live without. There may not even be a need for marketing. Well unless you have a really bad website. Than you need some help. But if your product is super wonderful, especially when people want to know – where’d you get that? Then you are #mydreamclient
For the rest of the world, marketing comes in handy and increasingly so on the internet.
Statistics vary from source-to-source, but the conversion rates to follow in this post are closer to the truth than what most digital agencies quote. The purpose of this post is to relate what is most effective when it comes to spending your marketing dollars.
In 2016, global e-commerce sales are expected to reach 1.92 trillion US dollars. This year alone, 1.22 billion people worldwide are expected to buy goods and services online. (Conversioner.com)
While Gartner Research claims that by 2020 customers will manage 85% of their relationships with brands without ever talking to a human because of rapid growth of “marketing automation”, this post is a review of current conversation rates for some of the most popular methods of inbound marketing conducted by mere humans.
It’s important to understand the difference between a CTR (click through rate) which happens during the customer’s discovery and journey and which refers to the percentage of visitors clicking on your online ad or blog post/video link. Divide the number of impressions (people who saw your content) received by the number of clicks to get the CTR. For example if a blog post had 100 shares and two people clicked on something in it, the rate would be 2%.
For this post a conversion rate measures the percentage of your website visitors who actually purchase something from you. Conversion rate measures the number of sales you’ve received, just divide the number of sales by the number of visitors you have had to your website. Focusing on the ultimate user experience, while optimizing the conversion rate on your website is extremely important and an entirely different topic. For this post we were interested in learning which marketing activities attract the highest chances of conversion.
According to Forrester Research the average conversion rates across marketing activities are about 2.9%, while it’s also interesting to note that the average online order value in the first quarter of 2014 in the US was $78.00.
According to Conversioner.com 80% of the online population has purchased something using the internet and 50% have purchased more than once while 84% of online shoppers refer to at least one social media site for recommendations before shopping.
Some interesting findings.
- Personalized emails improve click through rates by 14% and conversion rates by 10% (Aberdeen Group)
- Using the word “Secret” in the subject line of your email has proven to get the most clicks. (Hubspot). While “Click Here” gets the highest percentage of clicks over “Go” and “Submit”.
- 65% of consumers prefer emails that contain mostly images vs 35% who prefer mostly text. (Hubspot).
- According to Conversioner.com email marketing is the most converting traffic source with 3.3% conversion rate.
Social Media Marketing
So what does a Facebook business page or Instagram account really mean to your bottom line?
- 52% of marketers cite difficulties in accurately measuring the return on investment as their main source of frustration in social marketing. It really makes you wonder about all the work it took to get those 1K + likes on Instagram, doesn’t it?
- In 2014 Conversioner.com reported an average conversion rate of 1.08% through social platforms like Facebook and Pinterest.
- According to a blog post by Marc Macdonald on Shopify.com Facebook dominates as a source of traffic and sales with a 1.85% conversion rate and an average of 85% of all orders from social media belong to Facebook. So less than two people out of 100 are actually going to buy anything from you.
You see Facebook and basically all social media are good tools for market research, customer service and customer feedback. Not sales.
Search Engine Optimization
- SEO leads have a 14.6% close rate, while outbound leads (like direct mail or print advertising) have a 1.7% close rate. (Search Engine Journal).
- A search for a product had an average 2.27% conversion rate for online US Shoppers in 2014. By referrer, Google had a 1.71% conversion rate in 2013 according to Smartinsights.com
- Marketers who have prioritized content creation and curation (ie. a brand blog) are 13x more likely to enjoy a positive return on investment.
- Content marketing generates 3 x as many leads as traditional outbound marketing, but costs 62% less (Demand Metric)
- The top three most widely adopted content marketing tactics are videos (87%), website articles (86%) and in person events.
- 79% of companies that have a blog have reported a positive ROI for inbound marketing in 2013. (HubSpot State of Inbound 2013).
- It’s interesting to note that 73% of consumers are more likely to make a purchase after watching a video and videos in universal search results have a 41% higher click through than plain-text results. When optimizing for universal search, pay attention to keyword intent and be sure to use informational keywords vs transactional words.
The trust factor becomes important with referral marketing as consumers rely on recommendations from people they know. According to a Neilson Trust Study, word-of-mouth referrals are the most trusted form of “marketing”, while editorial content, a mention or feature story in a magazine or newspaper fell behind a great branded website and online reviews.
Make it easy for customers to refer your products and services and be sure to respond to online reviews for engagement. Shopify has a number of great app recommendations to help referrals including Referral Candy, Friendybuy, LoyaltyLion and Referrify.
It depends on what you read, but the average click-through rate for paid search in 2010 worldwide was 2% (Convario Jan 2011) and in 2014 about 3.58% for shopping, 6.12% for banking, insurance and finance, 1.45% for the travel industry, 2.21% for home and garden and 4.79% for computers and technology.
While about 8% of purchases come from desktops with a tablet purchase close behind, only 4% of purchases are made from a smart phone. But don’t you worry, that is growing. Thousands of blog posts will tell you so. In the meantime, there is a lot of mobile frustration, as potential customers complain of difficulty viewing product information, a challenge comparing product features and costs to others and slow connection speed as just a few of the setbacks to purchasing on their phones.
Conversions by affiliates have the highest order value with an average of $445.00 per sales order according to Hubspot and online surveys demonstrate a 1-3% conversion rate for affiliate marketing.
While we continue to study what marketing activities are worthwhile and actually lead to sales and have a return on investment when it comes to building a business, we agree with Seth Godin. “Being the best in the world is seriously underrated.”