What's the key to jewelry business success on the web?
How about profit margins? Well... we're getting closer.
Give up? It's conversion rate. Yup, it's about actually getting sales.
What's a conversion rate?
Your conversion rate is your visitor to sales ratio.
So how do you calculate your sales per visitor?
Here's the calculation:
(Sales / Unique Visitors) = Conversion Rate
For example, if you had 100 visitors to your web shop, and 1 person bought something from you, that's a 1% conversion rate.
Why Focus on Conversion Rate?
Increase that rate, and you increase your income just like that - without increasing traffic!
All those other things? The pretty website? The pretty pictures? Facebook? Twitter? Getting search engine traffic? Of course they're important too, but you need all that traffic and all those pretty graphics and photos to bring in sales. No sales, no success.
I want to make this one point crystal clear though before you think you can drop prices to increase sales conversions. That's a recipe for disaster. Make sure you make a profit. In physical product sales you need a sustainable profit margin. Don't ever think it's about getting sales at all costs. Making a profit after your labor and supplies is important too.
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The best part about increasing your conversion rate is that you get more sales with the same traffic levels. This means your income goes up even if your visitor count stays the same. So when you do get more visitors, your income automatically increases that much more too.
I found this great blog post by Alice Seba that perfectly matched this jewelry marketing principle: Conversion: Less Volume, More Results. It's a great article on how to figure out your sales conversion rate.
Once you know what your conversion rate is, you can start improving it.
Questions? Comments? Whatcha think?
P.S. Focusing on results exactly matches what I teach in Handmade Results Weekly. Throughout the training program we discuss different ways to get more traffic, increase conversion rate, and just do better in less time. We're reopening to new students soon, so if you want to get some handmade jewelry business training and learn how to make the internet work for you, get on the notification list, and I'll let you know when we reopen.