Conversion rate optimisation (CRO) focuses on increasing the percentage of web users who complete a desired action. These so-called desired actions could include giving you their email address, making a purchase or reaching out to contact you.
CRO involves reviewing data to understand how users move through your site and to locate drop-off points before users complete your goals. Tests are run and enhancements made in response to the data.
Investing in marketing is only worthwhile if your business is able to reap the rewards. If you’re spending money on campaigns, you want to see sales increasing. You want to be sure that the resources you allocate to marketing are truly boosting your profits.
There are several ways to improve marketing impact and increase ROI. But businesses often overlook one of the most cost-effective ways: conversion rate optimisation.
You might be generating traffic, but how does your conversion rate stack up?
How conversion rate optimisation ROI works
CRO results in a bigger gap between costs and revenue, so you can experience increased profits on your marketing spend. Let me explain how.
Increasing your conversion rate doesn’t necessarily mean elevating costs. You might be doubling your conversion rate, but your expenses won’t suddenly double as well.
Source: Conversion Rate Experts
You see, your advertising and fixed costs will not alter and all you’ll need to take into consideration are the variables that are relevant to your business. For example, the cost of labour and customer service in relation to the extra business coming in.
Put simply, in this case your costs won’t consume as large a portion or your overall revenue. Therefore, you would experience a bigger profit margin.
While, many businesses are looking to generate more traffic to their website, they forget to invest resources into encouraging customers and potential buyers to take the next step. With conversion optimisation, you can maximise profits and increase sales. Even if you’re not getting more traffic, the number of web visitors may stay the same but you’re converting more of that traffic into customers.
Stop wasting your inbound traffic
The biggest challenge for many businesses isn’t getting noticed, but making sure website visitors reach out to them by buying a product or making contact. You might have hundreds, thousands, even millions of people visiting your site. But if you can’t convert leads, your ROI will be weak.
To improve conversion rates, you need to analyse data and try and identify reasons why customers are deserting you along the sales funnel. You need to make sure your website caters for your target buyers’ particular needs or wants, and guides them easily toward the next step.
Are the steps they need to take clear enough? Is it too difficult or time-consuming to find information or complete a purchase? Monitoring your performance is an excellent way to learn more about your website and identify reasons why you’re not turning traffic into sales.
Conversion rate optimisation can help you boost customer numbers and improve your ROI without spending more money on trying to increase traffic. If you’re getting seen online but your business isn’t profiting as much as you’d like, it may be time to think about how conversion rate optimisation could make a difference.