When website visitors don’t convert into paying customers, it hurts. Imagine spending all that money to drive targeted traffic to your landing page but visitors don’t convert at all.
It is frustrating.
To get rid of this conversion problem and to make sure every single visitor has the best chance of converting into a customers, to do this you have to invest in a Conversion Rate Optimization (CRO) project. CRO is defined as a systematic process that is aimed at increasing the percentage of website visitors who take a desired action.
CRO isn’t easy. It involves intensive testing, experimentation, analysis, and tweaking. This is one major reason why companies conduct CRO experimentation at only a basic level, according to Econsultancy Ecommerce Performance Report 2018.
In order to make you realize that you should invest on CRO in 2018, you need to understand why CRO is important for your business.
Why CRO Is Important
CRO is important and worth spending money on for several reasons. We’ve put together a list of reaasons why a conversion optimisation project will benefit your business!
Increases conversion rate
So what happens when conversion rate is increased? Your business generates leads/sales. If your website gets 100 visits per month and converts at 2%. That’s 2 sales/leads (actions) per month. Now, if your site converted at 5 percent, you would get 5 actions per month. That’s an extra 3 actions. You’re still getting the same 100 visitors so you haven’t had to outlay any additional marketing expense. The best part is, that 5% will convert next month and the month after that, assuming all other things are equal.
This is what makes CRO a gem that you shouldn’t ignore. If your website generates leads/sales, there isn’t anything else you need, right? You need to close those leads which happens to be an easier job when you have more of them.
Statistics show that only 22% of businesses are satisfied with their current conversion rate. This means most businesses aren’t happy with their conversion rate. This will include your competitors as well.
You know what you have to do when your competitors aren’t doing something well. Capitalise!
Increased conversion rate increases revenue and sales
Every visitor who leaves your website without converting costs you money. When visitors convert, your business gets new customers. CRO helps you understand why visitors are leaving your website. When you know why they are leaving, you can so something about it, to STOP them leaving, this is how it is linked to sales and revenue.
For instance, (purely an example) CRO experimentation reveals that green CTA button converts at 30% while blue CTA button converts at 50%. This is how CRO helps you increase revenue.
But businesses are struggling with it.
Identify areas to optimize
CRO identifies all the areas that are performing poorly and aren’t appreciated by users. Only once you know what these areas are can you set about improving them. Without undertaking a CRO project you’re basically just going to use trial and error, which can cost you money, when your trial has a negative impact instead of a positive impact!
Identifying areas for improvement is achieved by experimentation and hypotheses testing. Everything on a given landing page is tested and you get to know what works and what doesn’t. We use tools like HotJar, Google Analytics Experiments, Optinmonster, Heatmaps, Multi Variant testing and many other methods to analyse a website as part of CRO.
Reduces customer acquisition cost
Customer Acquisition Cost (CAC) refers to the cost of acquiring new customers in a given period. It is calculated by dividing all the costs associated with acquiring new customers by the total number of customers acquired.
CRO reduces CAC.
This gives your business a competitive advantage. While your competitors might be paying $30 to acquire a new customer, you might spend a mere $2 to acquire a new customer.
This is made possible by optimizing your communication platforms, most importantly your website, so that maximum number of visitors convert into customers. When this happens, you’ll be able to significantly lower your CAC.
CRO is all about experimentation. Every experiment provides you with data that you can use for decision-making. CRO takes the guesswork out of the equation.
For instance, Express Watches found that their customers care more about authenticity than low price. CRO helped them identify what their customers prefer. They replaced the Never Beaten on Price image on their product page.
The variation used Seiko Authorized Dealer Site.
It increased sales by 107%.
Express Watches now know one thing for certain: Their customers prefer authenticity over price.
This information can help them in creating more landing pages, blog posts, email series, social media posts, videos, and everything else.
CRO tells you what works and you can then stick to it without any guesswork.
Why This Is the Right Time To Invest in CRO
While there isn’t any right or wrong time to invest in CRO but 2018 happens to be the most appropriate time to understand a CRO project.
Because a fairly large number of businesses have no clue of how CRO helps their business and thus, they aren’t investing in CRO. The findings of the Econsultancy Ecommerce Performance Report 2018 are surprising:
As much as 85% of businesses have no clue why visitors leave their site and 82% of ecommerce stores have no understanding of why people abandon their shopping cart. And only
- 15% of businesses know how much online revenue they’re losing due to users leaving their websites.
- Some 38% of companies conduct experimentation for CRO at the basic level.
- Only 47% of businesses have invested in CRO and only 50% of companies run CRO experiments in sequence.
If you invest in CRO right now, you’ll enjoy better conversion rate than your competitors, you’ll be able to significantly increase sales and revenue, you’ll be able to acquire new customers at a much lower cost as compared to your competitors, and you’ll be able to identify all the possible elements on your website that impact conversion rate and matter the most.
This will put you in the driving seat in your industry.
You’ll have a clear competitive advantage.
CRO isn’t as simple as it seems. It needs intensive experimentation that you have to conduct for months and months. It is a long-term strategy that will help you get better over time.
At the same time, CRO isn’t cheap. You need access to several CRO tools and experts to help you with experimentation and testing. It will cost you a lot.
But at the end of the day, CRO will never disappoint you. This is one investment that you’ll never regret.