Hi All and thank you for reading this post.
We are developing a new app that surveys and research have shown will increase conversion rates by 70% and add more items to the sale.
Our question is how much would you pay for an app like that?
For example if you had 1,000 visitors and your normal conversion rate is 2% that is 20 sales with each sale of $100 totaling $2,000.
With our app the conversion rate increases to 3.4% (+70%) which is 34 sales and an income of $3.400.
Knowing how much it cost and the effort it took to get that visitor to your site what would you pay for the increase in sales?
Would you pay 10% ($340), 5% ($170), 2% ($85) or 1% ($34) of the total sales?
The increase in sales is not the only added benefits of the app.
We would appreciate your thoughts and comments
I would pay more for such an app.. Cost is tricky. $100 average sales is too high for most of us. Assuming it $20-$25, it makes difference to have more conversion and hence pay for that. However, can you elaborate how app will increase conversion? Conversion is pretty much standard. Re-arranging catalog may not make much difference and it is up to seller. I am trying to understand how you can claim 70% increase in conversion? based on what?
That's a great conversion increase. It really depends on how does the app increase conversion - is it through upselling? Intelligent product/services recommendation based on the visitor's browsing and purchasing history? How can you guarantee a set increase of conversion?
Thank you for your comment
$100 average sale was just a number for ease of calculation and understand the average sale is lower on most stores.
It's kind of hard to elaborate more on the App until we launch.
The app does not do anything to the existing store catalog, upsells etc, just adds something that will entice more people to buy from your store.
We have done extensive surveys and research with customers with the mean increase of conversion rates being 70%.
Thank you again for your comments and questions and we will be launching by mid-June
Thank you for your reply.
Not through upselling or changing catalog but through an enticement to purchase from the seller to the potential customer.
We will be launching mid-June and cannot guarantee the increase but that has been the average with our survey and research.
thank you again for your post