Conversion Rates are, as we know, the percentage of prospective customers who take a specific action you want.
Conversion = profit
As stated by Forbes magazine, conversion rates matter because you can achieve a higher conversion rate for no additional ad-spend and it has a direct impact on profits.
For example, if you spend R1,000 on advertising, you may bring 1,000 prospective customers to your website. If your online sales conversion rate is 5%, then you’ll secure 50 new customers. Alternatively, if your conversion rate improved to 6%, you would gain 60 new customers. In the latter scenario, you’d gain an additional 10 customer for no additional advertising cost.
It’s for this reason that we’ve launched CLOSED; a LeadSMART add-on that assists you to qualify your lead in Lead Ads.
But how to move from 5% to 6% or even 5% to 10%?
Qualified leads = higher conversion rates
It’s a nutshell; qualified leads lead to higher conversion rates.
Facebook Lead Ads are a great way to generate leads because of the in-platform ease, with which a user can submit their details but getting a wide number of leads which have a low potential of converting, actually puts pressure on the business and resources by wasting valuable time.
Audience, creative and context matters
Target – Of course to ensure leads with a high propensity for conversion, I.e. a qualified lead, you need to ensure you’re targeting correctly. For example the right audience and at the right time which means you’ll need to know what stage of the purchasing funnel they are in.
Right creative – You also need to ensure that your creative appeals to your target audience.
Give context – You could also use a context card which gives the user of a lead ad, additional context surrounding the action and what to expect.
Close the Loop
We were excited about developing LeadSMART because we could offer clients real time leads from Lead Ads which they couldn’t get on Facebook. With the help of CLOSED, we can now ensure that the leads are highly qualified.
Leads can be qualified on Age, gender, marital status, location, financial affluence, title, home owner etc.