My startup sells a fairly expensive (2500$~) desktop product, we are new in a well-established market and it's been 2 months that we are selling the product.
We do have an evaluation request page which users need to fill up to get a demo version (fully functional, time limited demo), page require plenty of information and we do not accept free emails or incorrectly filled up forms.
We do get 4-5 good demo requests per day which is good because all of them look like real potential buyers.
The problem though we can convert only ~0.5% of them. All of our sales happening via other channels. Personal contacts, events etc.
- Our product really sucks!
- It's too expensive
- People are scared to buy expensive products from small companies
Answers to Possible causes:
- Our current users are really happy with the product
- It's not any more expensive than our competitors, actually cheaper than many of them
We don't actually follow up many of these users (we'll) so I don't have good feedback on why they didn't buy. I heard "lack of features" from some of them. We are one of those companies who does the core product so good but not include tons of features, that was a design decision and I think cost us some sales (can't say how many).
So what do you think does it mean? Many startups sell smaller products with a price range of 5-250$ that's why I can't find enough data or talk about selling expensive products (1000$+)
I hope I gave you enough background, feel free to ask me if you have any questions.
9 Months Later Update
Thanks everyone, I wanted to give you an update, 9 months later than the original question.
- Our current conversion rate is 7.5% which is good I guess for an expensive product.
- Main reason to increase that I think product quality went up
- Secondly customer's order process takes about 2 months and when I wrote 0.5% conversion rate we were fairly new. So I assume if I wrote the question 2 months later our conversion rates would be around 3-4%
- Survey didn't work out nicely, we got some response but nothing actionable and response to survey was quite low as well. To be honest even after 9 months we couldn't manage to get a good after-demo feedback, we still working on a better process to improve this.
Hope this data helps to other startups.