Cookies help us display personalized product recommendations and ensure you have great shopping experience.

By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    big data analytics in transporation
    Turning Data Into Decisions: How Analytics Improves Transportation Strategy
    3 Min Read
    sales and data analytics
    How Data Analytics Improves Lead Management and Sales Results
    9 Min Read
    data analytics and truck accident claims
    How Data Analytics Reduces Truck Accidents and Speeds Up Claims
    7 Min Read
    predictive analytics for interior designers
    Interior Designers Boost Profits with Predictive Analytics
    8 Min Read
    image fx (67)
    Improving LinkedIn Ad Strategies with Data Analytics
    9 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Say No to Low Conversion Rates
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Marketing > Say No to Low Conversion Rates
Marketing

Say No to Low Conversion Rates

Guarav Rastogi
Guarav Rastogi
5 Min Read
Image
SHARE

ImageConventional wisdom is often the result of a collective process. Bottled water is better than tap, eating fat causes health problems and ‘Conversion Rates’ in your industry—the most important metric in most digital subscription businesses—a re meant to remain low.

ImageConventional wisdom is often the result of a collective process. Bottled water is better than tap, eating fat causes health problems and ‘Conversion Rates’ in your industry—the most important metric in most digital subscription businesses—a re meant to remain low. As readers of Freakonomics, Moneyball and any of Gladwell’s books already know, conventional wisdom doesn’t always stand up to scrutiny. For the moment, let’s talk about Conversion Rates.

The word on the street is that conversion rates are just a numbers game, no matter whether the business model is to convert a free user to a paid customer or a freemium user to a paid customer. You have a lot of free subscribers, and some of them respond to your frequent email reminders and end up converting into paying customers. The number you have is the best you’re going to get. And so, eCommerce companies are happy if they net a 3% conversion, while Financial Services companies convert 10%, and SaaS companies top out at 5%-7% conversion. The only option is to acquire more free or freemium customers and do your best to nag them into converting. That’s just the way the world works.

But what if your conversion rates were not determined by some mysterious laws of economics, but just a result of conventional thinking? What if you had a “customer whisperer” who could tell you what you needed to say to any individual customer that will make your product irresistible?

More Read

Big-data-analytics-solutions
How Big Data Analytics Solving Product Promotion Issues
3 Reasons Landlords Should Reconsider Selling Tenant Data to Marketers
How to Use Audience Data to Inform Marketing Programs & Campaigns
Big Data Creates New Opportunities for International Affiliate Marketing
Highlights from Teradata Partners 2010

Absent such a magic helper, what you have is a brute force way of sending mass messages and hoping some stick. Meanwhile, you’re seeing your customers get trained to ignore your ‘all-too-frequent-yet-not-very-useful’ messages. One day, when you send them a message they may actually like, they’re likely going to ignore that too. You run the risk of becoming the boy who cried wolf, to your own detriment.

Adding more people into the ‘free’ end of the funnel is an obvious way to increase conversion but it also means that you are committing to paying more for your product to be made available to them. Until you’re ready to increase the conversion rates with the full power of data and science, you’re likely looking at a ‘cash-burn and pray’ business model. It doesn’t have to end that way.

While continuing to add people to the ‘free’ end of the funnel is obviously necessary, it is just as necessary to find the right approach to nudge users along to convert. Outside of conventional wisdom, the data analytics based approach, entrenched in mining user data already available to the organization, is one lucrative alternative in the effort to increase free/freemium users to paid customers. There are tools in the industry based on data analytics which will help you determine who your lucrative users are through predictive lead scoring. While organizations are becoming increasingly data-driven with their decisions, there is still room for improvement when it comes to how the data is being used. Do they generate foresight or is it merely hindsight?

More advanced in terms of what it offers is the decision engineering approach to conversion optimization, which in addition to telling us who to persuade towards conversion also helps answer several important questions; What are my users most likely to do next? How can I nudge them along a different path for faster conversion? What is the best way to reach my persuadable (to conversion) user? What are my customers likely to do in the future?

As the rest of the business world abandons convention in favor of smarter decisions and faster growth, digital subscription businesses need to say “no” to the myth of perpetually low conversion rates and demand a better way. Between existing user data and a scientific approach, this convention will soon be a thing of the past.

 

Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

AI role in medical industry
The Role Of AI In Transforming Medical Manufacturing
Artificial Intelligence Exclusive
b2b sales
Unseen Barriers: Identifying Bottlenecks In B2B Sales
Business Rules Exclusive Infographic
data intelligence in healthcare
How Data Is Powering Real-Time Intelligence in Health Systems
Big Data Exclusive
intersection of data
The Intersection of Data and Empathy in Modern Support Careers
Big Data Exclusive

Stay Connected

1.2kFollowersLike
33.7kFollowersFollow
222FollowersPin

You Might also Like

Master Data Management: Does an Effective Solution Exist?

3 Min Read

Facebook Modernizing to C++

1 Min Read
Image
AnalyticsBig DataBusiness IntelligenceDecision ManagementHadoopMarketingWeb Analytics

How 250 Milliseconds in Added Latency Can Ruin Online Sales This Holiday Season

6 Min Read

Intuit uses attribution analysis, behavioral targeting, and funnel-aware messaging

9 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

ai chatbot
The Art of Conversation: Enhancing Chatbots with Advanced AI Prompts
Chatbots
giveaway chatbots
How To Get An Award Winning Giveaway Bot
Big Data Chatbots Exclusive

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-25 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?