Signpost’s own marketing guru Jacco de Bruijn contributed the guest post below.

As VP of Marketing for Signpost I find myself in a great position to leverage my passion: I am not just helping our company market itself, but I have the exciting opportunity to do the same for the thousands of local businesses like yours on the Signpost platform. I realize you are in the same situation as we are; you have a vision of where you want to be in a couple of years from now, but right now your focus is on attracting new customers to keep your business growing.

As your one-stop-shop for online marketing Signpost wants to take the burden of attracting new customers off your hands so you can concentrate on making sure they turn into long-term customers. That said, it’s important to understand three crucial aspects of online marketing regardless what marketing methods you choose: the conversion rate, the cost per new customer, and the lifetime value of a new customer. This post covers the conversion rate.

The Conversion Rate

The conversion rate is defined as the percentage of people that end up purchasing your service or product after engaging with your marketing. The classic “AIDA” marketing theory categorizes potential customers based on their level of engagement and likelihood to purchase: Awareness, Interest, Desire and Action.  Converting consumers from being aware of your business to taking action (by purchasing) is what marketing is all about.  The more consumers you can convert, the higher your conversion rate, and hence the more effective your marketing is.


I know from my experience managing marketing for big national brands, startups and local businesses, that in the end it is all about getting new paying customers and keeping them. However, especially for local businesses, there is usually neither enough money nor time to test out different marketing channels and see what works.

Local Business Marketing

Over the past year I have been helping a local NJ hair salon, Guci Image, with their online marketing to attract new customers. When considering potential marketing channels, we always ask: how many people will we reach and how many new paying customers will we gain?  New Customers divided by Reach will tell you the Conversion Rate.

Guci Image has been running multiple marketing campaigns on our platform with great success, mainly due to the high conversion rate.  At Signpost the conversion rate for local businesses is higher than pretty much any other marketing available.  That is because we are focused on marketing that drives an online transaction.  There are many ways to pay for traffic to your website, but the challenge is converting these visitors to paying customers.  With Signpost you actually get new customers that pay before they enter your business.  And the best part is, we do all the work for you so you don’t have to spend time creating and optimizing your campaign.

So before you decide to invest in new marketing you should always consider what the conversion rate is likely to be for that effort.  For example, if you’re working with a sales person, ask for detailed estimates on the reach and number of new clients you can expect, or research benchmark numbers online if you are using a self-serve platform.

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