The Web 2.0 conversion funnel increase
Typical Web 2.0 funnel
The Web 2.0 web services are characterized by the free trials or freemiums and the premiums (paying) services. In many cases this pricing comes in 3 buckets of services: “Bronze”, “Silver” and “Gold”.
A typical Web2.0 conversion funnel is:
- Visitors: 100
- Trial for free: 10
- Active trial users: 5
- Paying users: 1
So for every paying customer there has been 100 visitors to the website.
The visitors have found the website by search engine, a link
from
another page, online advertising, or printed matters.
These visitors are unknown to you, but using LEADSExplorer a large
number can be identified by the Company name, location and capturing
their interests and behavior for exploring and converting into freemium
and premium customers.
Why no signup for free trial
There can be many reasons why 90 out of 100 visitors leave the website without considering to signup for the free trial:
- Solution not suited.
- Website has not informed correctly
- The visitors have wrongly interpreted the information on the website
- Complex and cumbersome signup data (too much input).
- No pricing listed for the paying version.
This conversion to trial offers the largest opportunity to improve the conversion rate, as people only have received the information in a generic non personalized manner through the website.
Increase signup for free trial
By using LEADSExplorer it is possible to investigate on their behavior on the website and company or even personal information, allowing you to address their supposed problems or their business case.
Suppose you qualify 40% of the visitors as potential customer
and thus would try to contact and communicate with them.
In the example: 10 from these 40 potential customers will signup for trial anyway. Thus the 30 remaining are the ones who can still be convinced. As the
communication to them will be timely and contain adequate and
personalized information, a larger part would signup for the free
trial.
This improved conversion rate will depend on your skills for:
- Analyzing their needs.
- Putting together the appropriate communication message.
- Opening a conversation.
- Listening capability, once in contact with an employee.
Suppose only an additional 17% signs up, the free signup would increase
to:
30 x 17% = 5 above the 10 signups.
These would bring the total signup for free trial to 15 signups. Or a 50% funnel conversion increase.
Conversion from free trial to paying customer
Applying the standard metrics (10%) the total number for converting free to paying customers would already increase to 1.5 paying customers or a 50% increase.
As LEADSexplorer allows tracking, tracing and analyzing all visits and communications between the company and you, the conversion into paying customer will be higher, as without:
- People signup for trial, but never use (10% of free signup).
- People signup for trial, but only try once or twice (40% of free signup).
- Active free users who never become paying users (40% of free signup).
- Ask the most adequate and/or appropriate questions.
- Start a conversation.
- Build a relationship.
- Follow up on their visits and the use of your application.
Thus being able to adequately and timely act and react upon their
behavior.
Moreover you will learn about their requirements and how application
suits their case or not.
Augment funnel conversion customers
All this received and obtained information can be used for
nurturing them or just remind them on the benefits of the free trial. This will establish a relationship during the conversation, which will increase the conversion rate significantly: 15% instead of 10%.
Thus the 15 signups would become 2.25 paying customers, which is
significant improvement of the funnel from the original 1
paying signup.
Just doubling your sales !
References:
How to measure the success of your web app
Web app autopsy
Cold Calling 2.0
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Funnel and Lead qualification
Qualifying leads before nudging them into the sales funnel is the first
and essential thing to do, as once they are in the sales funnel time
and effort will be spend in getting the prospect to buy. Thus in order
to avoid waste of time, the qualification is essential.
Both new potential and existing customer can be in the sales funnel,
but both prospects should be treated equally. LEADSExplorer not solely
allows finding new leads from website visitors, but also allows for
qualifying based upon search terms used, pages visited and visiting
statistics by company.