Posts Tagged ‘profit’

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

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