Conversion: essentials you need to know
Subscriptions and conversions: essentials you need to know
Conversion refers to the process of turning a website visitor into a customer or a desired action taken by the visitor, such as filling out a form, making a purchase, or subscribing to a newsletter. In online marketing, the goal is often to increase the conversion rate, which is the percentage of visitors to a website who take a desired action.
The latest studies in 2023 demonstrate that the average e-commerce conversion rate is 3.68%. Basic factors affecting conversion rate include:
- website design,
- user experience,
- product or service offering
- target audience.
It is important to track and analyze conversion rates regularly to continuously improve and optimize website performance.
Conversion rate is a crucial metric for subscription-based businesses as it directly impacts their revenue and growth. A high conversion rate means that a larger percentage of visitors to the website is signing up for the subscription, leading to a steady stream of recurring revenue. On the other hand, a low conversion rate can indicate problems with the website, the subscription offer, or the target audience.
By tracking and analyzing conversion rates, subscription-based service providers can identify areas for improvement, make changes to increase sign-ups, and ultimately drive growth. In addition, conversion data can also provide valuable insights into the behavior and preferences of their target audience, allowing businesses to make informed decisions and tailor their solutions to better meet the needs of their customers.
How to increase conversion rate?
Here are some steps organizations can take to increase conversion rates for recurring payment models:
Optimize the website
Ensure that the website has a clean, professional design and is user-friendly. Provide the call-to-action (CTA) for signing up for the subscription, and check whether it is prominent and clear.
Make sure the subscription offer provides value to the customer, such as exclusive content, discounts, or premium features. Highlighting the benefits of the subscription and making them evident can help increase conversion rates.
Offer a free trial
Allowing customers to try the subscription for free can help build trust and increase conversion rates.
Make the payment process simple
The payment process should be easy, secure, and seamless. A complicated or lengthy payment process can discourage potential subscribers from signing up.
You can automate conversion, using suitable tools and technologies. For example, implementing the Payment Widget makes it easier for users to pay for products and services.
Add new payment methods
According to a study conducted by ECC Köln on the German online payment market, it has been found that more than 50% of customers have abandoned their purchase because they couldn't find a suitable payment method.
Enhancing the checkout experience can be achieved by introducing additional payment methods that might be more convenient for users. In certain niches, such as VPN services or iGambling, this could be especially crucial.
A crypto payment processing platform, like Calypso Pay, provides high-converting solutions for merchants to acquire and process all the popular cryptocurrencies.
Understand your audience
You can customize the experience by providing relevant recommendations, offers, and promotions based on their interests and behavior.
Use relevant traffic
The conversion rate you achieve will be closely tied to the preferences and inclinations of the users you are drawing to your website. Make an effort to focus on attracting an audience who not only has an interest in cryptocurrency-related offerings but also a keen interest in the unique value you provide.
Segment your audience
Segment your audience based on behavior and preferences, and tailor your offering and messaging to each segment to increase relevance and appeal.
Merchants should take into account the payment infrastructure within their business's country and the local payment ecosystem. Enabling familiar payment methods for local users is a key strategy for enhancing conversion rates.
Test and measure
Regularly test different elements of the website, such as the CTA, pricing, and value proposition, to determine what works best and make data-driven improvements.
Personalize the customer experience
Implementing these strategies can help increase conversion rates and drive growth for organizations that charge recurring payments. If you are not getting enough conversions, your business model can't be sustained. On the other hand, if you are getting a lot of conversions, it is time to figure out how to make more money from them.
Make it smart
Adding cryptocurrency as a payment method can potentially improve conversion rates for certain businesses, but it depends on various factors and the nature of the business itself. Here are some considerations:
- Target Audience. If your customers are tech-savvy or already involved in cryptocurrency, offering it as a payment option can be attractive and lead to higher conversions.
- International Customers. If you have an international customer base, cryptocurrency can be an appealing option because it's not bound by exchange rates and international transaction fees. This can attract more global customers.
- Security and Anonymity. Some customers value the security and anonymity offered by cryptocurrency transactions. If privacy is a concern for your customers, this can be a selling point.
- Marketing and PR: Announcing that you accept cryptocurrency can generate positive PR and attract a tech-savvy audience. It can also signal that your business is forward-thinking and adaptive.
- Volatility. Cryptocurrencies can be highly volatile. Businesses accepting them may choose to instantly convert received crypto to stablecoins or fiat to avoid exposure to price fluctuations.
- Integration and Support. Ensure you have a robust payment gateway and customer support for cryptocurrency transactions. A seamless experience is crucial.
- Legal and Regulatory Considerations. Depending on your jurisdiction, there may be legal and tax implications when dealing with cryptocurrency. Ensure compliance with local regulations.
- Educating Customers. Some customers may not be familiar with how cryptocurrency works. Providing educational resources and support can ease their concerns and boost confidence in using crypto.
It's important to research and analyze whether integrating cryptocurrency payments aligns with your business goals, customer base, and industry. It's not a one-size-fits-all solution, but when implemented strategically, it can indeed lead to improved conversion rates and customer satisfaction.