The downside of very high conversion rates
April 13th, 2012
Almost every marketer I talk to wants to know about average conversion rates. And, I presume, they want that info so they can focus on being above average.
While a marketing Lake Wobegon, where all of your conversion rates are above average, sounds tempting on the face of it, let me make a, perhaps, counterintuitive argument …
Very high conversion rates are usually not good for your ultimate KPI — profit
And this is one reason why an obsession with average conversion rates can be harmful to your marketing health.
There are two possible downsides to very high conversion rates:
- You are focusing too much of your marketing efforts on an audience that would buy from you anyway, and not enough on finding new customers
- You are offering too big of an incentive
