David Utter had a great article on conversions at WebProNews. There’s a lot of meat in this article, but I like that last paragraph:
Even the regulars may provide better profitability in converting sales, either more frequently or with larger purchases depending on one’s business niche. When looking for conversions, don’t neglect the customers you already have, even as you seek a broader customer base.
Today’s e-tailers have to think about the needs of two types of customers – those returning and new customers. They have entirely different needs. New customers will not do business with you if they can’t trust you. That’s the first thing to keep in mind. You have to give them every reason to trust what you are doing. Otherwise, they’ll go elsewhere.
What distinguishes you from the competition? It’s got to be more than price. You may be the least expensive service on the Internet, but that won’t make people buy from you. Easing their worries will.
As for your returning customers, if you put too much emphasis on gaining new sales then your customers will buy from you one time then never return. Is that what you want? If not, then you should seriously consider conversions from a dual standpoint – what your current customers want and potential customers need.
