Research shows that the bulk of e-commerce stores experience a conversion rate of below 3%, meaning the sales potential of their websites is seemingly under-performing. Your website is probably facing this same challenge.
This low rate of conversion also means that you are could be getting a negative ROI, on the money and time you have invested in generating traffic to your website. Building traffic through PPC, Social Media, SEO and other tactics is just one piece of the puzzle when we’re talking about increasing conversions. The other part that’s really important… but that you may have failed to work on, is having lead magnets in your website.
How Lead Magnets Work
A lead magnet is a valuable offer that attracts customers and encourages them to leave you their contact information such as email, phone number or social media account info, through which you can then create an ongoing relationship with them.
Types of lead magnets
If you are ready to tap into the hidden potential of your website, read on to find out the different types of lead magnets and how to incorporate them into your strategies.
Coupons allow customers to access discounts on items. The great thing about coupons is that since visitors can see the value on them, they can immediately calculate how much they stand to gain. This is an immediate perceived value.
If for instance you are selling blenders for $100 each and you are offering 30% 0ff, visitors will make a mental calculation of the actual value they will gain in exchange for their contact information. What’s more, they might even spend the discounted amount on another item on your website. A cent saved, is a cent to be spent elsewhere.
It’s rare for consumers to ignore a coupon. People will often convince themselves to take discounts wherever they can find them, and that’s what makes them such good lead magnets.
#2. Offer free shipping
Another way of offering discounts to customers. Like coupons, free shipping can create a pool of loyal customers for your store, as shipping costs is one expense that online shoppers would rather not incur. It serves no value and is often a stumbling block and a major factor to cart exits.
Remember to get your calculations right though, otherwise you’ll find yourself spending $6 to ship products that cost $2. Minimum order is a tactic used often and customers expect this kind of thing, so it’s not an unwelcome surprise.
#3. Offer a product buying guide
Product buying guides help shoppers to narrow down the product choices available online. This is what makes them such perfect lead magnets because shoppers are attracted to material that helps to simplify things.
A product buying guide provide tips for finding that one product that will fit a customer’s budget and satisfy his or her needs. If for instance, you want to make it easier for a customer to find a computer that’s best suited for them, you could offer tips through a guide titled, “Tips for buying the right device for your needs”.
Since customers know they’ll have an easier time finding the right product if they use your tips, they’ll readily sign up for it. By allowing them to avoid fighting ‘the finding the product battle’, you can guide them to help finishing the check-out war!
#4. Offer daily deals
The beauty about an online shop is that you can give deals every day and on any product you want.
Sales deals are a commonly used tool, especially by large online stores, so the key to turning your sales deals into lead magnets is to make them enticing. This way, visitors will want to give you their contact information so that they can receive updates of your amazing daily deals.
The gist is getting them inside; there is something for everyone and the odds are on any one of these days, their interest will be piqued by something relevant to their wants & needs.
#5. Give free samples
Who doesn’t like free stuff? Free samples are very effective lead magnets. Usually, visitors are unsure about buying a product if they can’t first sample it. Offer a free sample of your product where and when you can. This is particularly effective for a brand new product where you need to generate excitement and awareness.
For instance, if you are selling a deodorant that’s new in the market, customers will be hesitant to buy it without first trying it out. But if you provide test samples for free, more customers to will be interested in what you have to offer.
A benefit of this lead magnet is that you can get a lead’s physical address (to post the item) and usually a phone number in case of any delivery problems; the crux here is that it gives you another touch point for marketing.
#6. Giveaway promotions
Giveaway promotions will prompt visitors to give you their contact information for the chance of them winning something of value. A giveaway promotion would read something like, “sign up for the chance of winning a laptop”.
Though visitors don’t know for sure that they’ll win, they will sign up as long as they know there is even a little chance they could get a giveaway. Ensure you make it easy to enter and watch the entrants flood in.
For your giveaways to work, you have to make them regular and make sure that the winners publicize the fact that they got the prize. Social proof of real life winners will generate repeat entrees.
The more regular your giveaways, the more encouraged your customers will be to stay tuned to your updates.
#7. Run contests
Contests differ from giveaways in a variety of ways:
- Giveaways don’t require a visitor to purchase but contests do.
- Contest participants win by taking part in challenges.
- Some contents require a subscription fee.
- The prizes that are up for grabs in contests are usually given after a draw.
You might wonder what would entice people to sign up, pay a subscription fee or buy a product in order to participate in a contest. The reason they’ll do all these things is because usually, the winnings are so big as compared to what they’ll have to spend.
Having the contact information of potential customers is a powerful tool through which you can constantly market your products and make potential customers to eventually buy. Include the above lead magnets into your e-commerce site and you will get higher conversion rates. Even a .5% increase can result in massive revenues for high turnover businesses.
What do you think of above article? Let us know in the comments below.