Let us face it: Attracting new visitors to your business website is hard enough given how much time and resources you have to spend blocking and tackling your competitors’ advertising on Facebook, Google, Bing, and elsewhere. Unfortunately, that is only half of the challenge.
The other half, which is the most important one, is persuading your site visitors to convert into a lead or sale. The process of maximizing these conversions is known as Conversion Rate Optimization (CRO), and it is crucial to the long-term success of your business.
This post discusses everything you need to know about conversion rate optimization and why it matters to your business. Read on to learn more!
What Is Conversion Rate Optimization?
Before we dive deep into discussing CRO, let us first understand what it is. In simple terms, CRO is the process of optimizing your website to increase the percentage of visitors who take a desired action, such as making a purchase or signing up for a newsletter.
This could involve anything from redesigning your website’s layout to changing your call-to-action buttons.
The primary goal is to make it as easy as possible for visitors to take the desired action while also ensuring that your website provides an enjoyable and valuable experience.
How Is CRO Calculated?
Conversion rate is typically calculated by taking the number of visitors to your website and dividing it by the number of conversions. For example, if you had 100 visitors to your site and 10 of them signed up for your newsletter, your conversion rate would be 10%.
It is important to note that conversion rates can vary depending on the type of business and the action you are trying to get visitors to take.
For example, a B2B company might have a lower conversion rate for sales than a B2C company because the purchasing decision is usually more complex and involves multiple stakeholders.
How Is CRO Optimized?
You need to keep in mind that you are optimizing for every possible variation across multiple devices. There is no one-size-fits-all solution since optimizing for mobile, desktops, and tablets is completely different.
However, your primary focus should be on mobile optimization because it represents most of your inbound traffic.
Secondly, you are optimizing your overall user experience. For this, focus on things such as the site’s usability, page design, navigation, process design, site speed, and email form design.
To achieve better results, you need to change a wide range of things, including but not limited to your page headlines, creatives, offers, voice, messaging, colors, call-to-action, and so on.
Sometimes, A/B testing different variations of each aspect can help you figure out which variations drive more conversions.
As you change different components of your site and monitor the effect on conversions, you are going to discover critical drop-off points in your conversion funnel.
Another critical aspect of conversion rate optimization is monitoring the impact of your marketing efforts on your conversions. Do some marketing channels work better than others? Do you notice any variations in conversion when targeting different customer demographics?
Do any variations in landing pages impact your overall conversion rates? Do certain offers convert better than others?
With time, you will learn that CRO isn’t just about optimizing the user experience function of your site. It involves working in close partnership with your marketing department to help optimize what they are doing as well to maximize conversions.
Why CRO Matters
Now that you know what CRO is and how it works, let’s discuss why it matters to your business.
1. Helps You Focus on Your Most Effective Marketing Channels
One of the main benefits of conversion rate optimization is that it helps you focus on your most effective marketing channels.
This is because you will be able to see which channels are driving the most conversions and, as a result, invest more in those channels.
2. CRO Helps You Know Your Audience
Success in any campaign you run primarily depends on how well you know your target audience. A better understanding of your audience will influence your messaging to drive more conversions.
You can use CRO as an effective tool for attracting and segmenting your target audience. Test out different copy versions or page designs to determine what appeals more to your target market.
For instance, if there is a relatively high click-through rate on one Google ad versus the other, then it means you have done something with the most clicked ad that captured your target audience’s attention.
That can help you figure out what resonates with your target audience, and use it as a baseline to test other variations. The constant testing and optimization will eventually lead to higher conversions because you will be able to understand your audience better and what appeals to them.
3. Increases Revenue per Customer
The primary reason CRO is so important is that it can help you increase your revenue without spending more on marketing or acquiring new customers. In other words, it helps you get more bang for your buck.
4. Helps You Make Data-Driven Decisions
With the crazy amounts of money poured into marketing, you need to do everything possible to ensure you are investing in the right marketing strategy. Making data-driven decisions can make or break your business.
One of the reasons why CRO matters is that testing anything through the CRO process will always return an outcome or data. The data you gather will help determine if the element you optimized on your site or page was fruitful.
By setting up specific conversion goals, you can easily determine the percentage of visitors who reached the goal and the test version that drove the conversion.
To achieve better results, be sure to test one element at a time. By testing one element at a time, you will know exactly what works and what doesn’t. Testing too many aspects at a go brings up confusion since you cannot attribute the change in conversion to one specific element.
Data is imperative for the long-term success of every business. Therefore, using the data collected from a CRO process can help you support proposed changes. When you have data to back up your business decisions, you will most likely receive buy-in from your team.
5. Increases Customer Lifetime Value
Acquiring new customers can be quite expensive. In fact, it is often said that it is easier to retain an existing customer than to acquire a new one. This is because the latter requires more time, effort, and resources.
CRO can help increase customer lifetime value in two ways; first, by helping you increase the number of customers, and second, by helping you increase the amount each customer spends.
Remember, the goal of CRO is to get more people to convert. If you are able to increase your conversion rate, then it stands to reason that you will also be able to increase your number of customers.
Secondly, CRO can help you increase the amount each customer spends. If you can get a customer to convert, then it is likely that they will continue doing business with you. The key here is to provide an exceptional experience that will keep them coming back.
6. Helps You Stay Ahead of the Competition
The competition in almost every industry is constantly evolving. In order to stay ahead of the curve, you need to be constantly testing and optimizing your site and landing pages.
CRO can help you do just that. By constantly testing different elements on your site, you will be able to figure out what works and what doesn’t. This will give you a competitive edge over your competitors who are not using CRO.
7. Helps You Build a Stronger Brand
A strong brand is essential for any business. In today’s competitive landscape, it is more important than ever to have a strong brand.
CRO can help you build a stronger brand in two ways; first, by helping you increase brand awareness, and second, by helping you create a better user experience.
By increasing your brand awareness, you will be able to reach more people. This will help you build a stronger brand in the long run.
Secondly, CRO can help you create a better user experience. If you are able to provide a better user experience, then it is likely that people will remember your brand and come back for more business from you.
Conversion rate optimization (CRO) is one of the most important aspects of any business, regardless of size or industry.
By optimizing your conversion rate, you can focus your marketing efforts on the most effective channels, understand your audience better, and increase revenue per customer.
CRO is a data-driven process that helps you make decisions based on factual evidence, which gives you a competitive edge over businesses that don’t optimize their conversions.
In addition to all of these benefits, CRO also helps you build a stronger brand and stay ahead of the competition. If you want to learn more about CRO or need help getting started, subscribe to our newsletter for tips from our industry experts.