“This is the follow-up to a previous article in which I explain the basic principles about optimizing conversion and acquisition costs. Did you miss it? Then first read part 1. The figure below summarizes the conclusion.”

In this article I will further discuss how you can optimize the conversion of your leads with 5 practical tips:

Try it yourself? Download our acquisition cost optimization tool.

5 tips for increasing your conversion

1. Measure and manage your conversion in detail

Well, maybe this is a bit simple. But in practice it often happens that this does not happen properly. Do you know exactly what the conversion is on all leads? And for specific target groups? Do leads from certain directions do better than others? You can measure this for each of your lead supply routes. A good CRM is important for this. We use the online CRM tool Pipedrive ourselves, which we can heartily recommend. Here you can easily view your conversion per step in the sales process and per lead form and thus optimize it. More info: https://www.pipedrive.com/en/features/see-your-sales-pipeline

A great way to test and optimize the result on specific approaches is through A / B testing. This way you can find out whether the conversion works better on a certain homepage or quotation than the others. Measuring is knowing, if you do this well, the first step towards higher conversion and profit margin has been taken. Consider well in advance what your goal is; a direct quotation request is often too big a step and perhaps you can interact with customers in an easily accessible way. This article gives you a good guide to start with A / B testing: https://blog.crazyegg.com/2015/06/02/ab-testing-google-analytics/.

2. Focus on generating trust

We cannot say it often enough. Trust, trust, trust! Everything you do must be set up to gain trust with your customer. Everything else is secondary to this. After all, the customer makes a substantial investment and must be sure that it is in the right place. I can devote an entire article to this on my own, but the basis is straightforward and honest. Make sure you comply with agreements, give honest and open advice, and ensure positive interaction with existing customers.

3. Balance personal contact vs. high volume

Personal communication and attention to a customer generates trust and therefore increases the conversion. We have seen from tests that the conversion on customers where a home visit was made double. However, the costs are also high. So think carefully about which leads you to pay attention and time to. Limit this to people who are already showing buy signals, and do not spend too much time in customers who are still orientating or shopping around. You can keep this warm using personal mailings with a clear Call to Action. Use a mail program with which you can keep track of clicks, for example; we can heartily recommend Mailchimp. Here you can immediately see the effect of your mailings and the number of clicks. Moreover, there is the option to test this A / B to optimize the impact.

4. Show distinctive character without shouting

What do you radiate? What distinguishes you from your competitors? Bring that in an honest and well-arranged manner. It is again about winning the trust of a customer. Do you prefer to buy from someone who explains everything calmly, or from someone who shouts the loudest? Everyone knows the answer, but why do we see so many brochures, websites, and other material with exclamation marks and bright colors? And yes, if you shout that you are the cheapest, people moan about the price. If you create clarity and trust, you show why you are worth a few cents extra.

5. Keep it short and simple (KISS) and limit the choice

Customers often ask for more choice and more options. So will it be that giving more choice leads to more sales? That is what usually happens in practice. Unfortunately, this is entirely wrong!

There have been many studies into the psychology behind making choices. Perhaps the most famous experiment is that at the University of Columbia (link to scientific article). Twenty-four flavors were offered and displayed one day in a jam shop and six on the other day. The shop was the same. The results were groundbreaking and surprising at the same time.

In the case where 24 flavors were offered, no less than 60% of passers-by stopped. You would say a good start! However, in the end, only bought 1.8%. The majority of visitors left the store without buying anything, overwhelmed by the choices. This effect is also called “decision analysis.”

In the case where only six flavors were offered, 40% of passers-by stopped, less so than in the first situation. However, of these 40 visitors, 12 bought a product, so 12%. Wow, the same store with less choice sold 10x more! Such experiments have been repeated many times with the same result.

This is a critical conclusion that you can apply in your marketing:

  • Never give a customer more than three options for different solar panel systems, and recommend one as the best fit. Yes, one and no more. I can’t say it often enough.
  • Keep your documentation (website, quotations) clear and well-arranged: not too much yelling or background information.
  • Use internet marketing with one clear call to action

(more info about this: https://blog.kissmetrics.com/too-many-choices/)

Good Luck!

Thanks for your attention! We are very curious about your ideas, and please contact us to exchange ideas. In the following article, I will discuss ways to increase your sales process efficiency and thus minimize acquisition costs.

Try it yourself? Download our acquisition cost optimization tool.

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