Why does your business need conversion rate optimization (CRO)? How can your online business benefit from CRO? Before we discuss why you need CRO in your business strategy, let us address the meaning of this digital marketing asset.
However, please note that the conversion rate (CR) is different from conversion rate optimization. You will see the difference as we go down the article.
What is Conversion Rate?
A conversion rate is the ratio or percentage of website users who conclude a task while on the site. Whatever useful action your site users and visitors make on your website that meets your primary objective is conversion.
And as you achieve your goal for each web page, they are added up and counted as your conversion rate-the ratio of users and visitors who took action and complete your intentions.
In other words, conversion rate lets you know the percentage of visitors to your site who convert. Consequently, when calculating your conversions rates, you can quantify the following metrics:
- Email Sign-ups
- Ebook Downloads
- Survey Respondents
- Product Purchases
- Total sales
- Webinar registration
- And so forth
Being able to gauge your conversion rate will enable you to discover webpages that are converting and those you need to optimize for better conversions.
What is Conversion Rate Optimization?
Conversion rate optimization (CRO) is the practice of increasing the ratio of your website users who complete your objective with available offerings.
It consists of understanding visitors behavior on your site, such as the activities they carried out and why they left your site without completing your desired goal of conversion.
The data will give you the knowledge to optimize your offerings better to improve conversions. Thus, now that you know what CR and CRO stand for let us move on to why you should focus on conversion rate optimization.
Why Conversion Rate Optimization Is Important to Your Business
Conversion rates are vital to your business because it allows you to understand how your landing page is doing – in terms of conversion. It also enables you to identify the web pages or marketing channels that are generating the most return on investment (ROI).
But why are we discussing this subject? Because several marketers are not applying CRO to their marketing strategy. Most of the marketers say their most significant problem in B2B lead generation is the failure to generate quality leads.
Other say the challenges they are facing is the inability to convert leads into paying customers. Hence, discover four proven facts why conversion rate optimization is vital to small business.
More Revenue With CRO
Whether you are paying for traffic or just free traffic, if your marketing efforts result in higher conversion rates, it means that you will generate more returns on your investment (ROI) – more revenue.
Here are a simple maths; if you increase your conversion rates by 10%, it effectively means more revenue to your bank account. For example, 10% of 10,000 is 1,000.
Now, if your digital product is selling at $147 per download, for which you converted 1,000 visitors, multiply $147 x 1000.
That is a whopping $147,000 right there in your bank account. What is more interesting is that conversion is cost-effective because you are generating value from website users you already have.
In consequence, focusing on CRO will allow you to obtain more buyers, boost your income per visitor, and skyrocket your ROI.
Lower Customer Acquisition Cost (CAC)
This digital marketing asset is vital to your business because it lowers customer acquisition cost in that it enables you to take advantage of existing website users and obtain an extra value from them. That means you acquire more leads without spending money.
As a result, if you optimize your conversion rate correctly, you stand a better chance to gain more clients, boost your income, and scale your business.
Let us use a similar example like the one above; if your sales page is attracting 10,000 visitors and converts 10% as explained above, that means your page is converting 1,000 new leads.
However, if you optimize your conversion and increase monthly leads to 15%, that is an extra 5% (500 more users) converted.
Therefore, if the added 5% should buy your product – selling at $147, you will generate $73,500 more. Give this; you can always increase your conversion rates by tweaking it where necessary to boost your digital marketing efforts.
Here is how to calculate the percentage of your conversion rates; 500 conversions divided by 10,000 landing page visitors x 100 = 5%.
Make Your Business More Authoritative
A website or webpage that is always optimized appears more authoritative as compared to non-optimized pages. It aids you to streamline the buying process from a landing page to a shopping trip.
For instance, a retail store owner with a stockpile of merchandise who optimize his sales pages properly can easily be found on search results, giving shoppers the opportunity to focus and examine what they need-making purchases or adding needed items in the shopping cart.
This approach means that a well-optimized landing page will make the retail store’s shopping cart more easily accessible to online shoppers.
That’s not all; it will also show the “frequently ask question” section if any, or an inquiry area where retailers can find answers to any questions they may have concerning product and supply.
Before we go further let me ask you this question;
Did you know that brands with about 10-15 landing pages on their website generate 55% more leads than those with lesser than ten landing pages? That is according to a HubSpot survey.
The survey shows that more landing pages on your site are profitable for your business because it offers you the opportunity to operate more marketing campaigns.
CRO Allows You To Focus On Important Traffic
The beauty of conversion rate optimization is that it helps you put your focus where it matters, such as the channels that are driving the most traffic to your landing page.
In consequence, instead of concentrating on your entire website traffic, you rather direct your attention to traffic segments that are converting.
Consequently, you will be able to tweak sales pages that are converting to increase conversion rates and adjust those that are not generating leads to start transforming visitors to buyers. Here are some fantastic tips to improve your conversion rates.
More reason for this step is because Google revealed that there is steady growth for the search of the terms “conversion rate optimization.”
It then means that more users are searching for CRO than ever before, as you can see in the graph above. With the above information in place, let us find out how you can develop your conversion measurables. Therefore, How can you establish conversion metrics?
Develop Conversion Metrics
A successful conversion rate optimization (CRO) campaign starts with figuring out your objectives for each landing page-meaning that your success rate connects to the aim of your landing pages.
In the above examples, we used a retailer or a retail store to help you get the point of why your business needs conversion rates optimization. Let us use a different approach this time.
As a digital marketer who sells a digital product, your primary objective is to make sales while your secondary goal is to acquire more quality leads. You can obtain these leads via gated content and other downloadable materials.
This process gives you a platform to create your conversion metrics, including:
- Email newsletter subscriptions
- Digital course downloads
- Website page views
- Membership sign-ups
With your conversion rates measurabilities in place, You can start the process of optimizing your conversion rates to boost website user experience (UX) and increase conversions.
Know Where to Optimize
Establishing your conversion rates quantifiables opens the way for you to evaluate your marketing efforts to pinpoint which areas of your conversion campaign needed adjustments (must be optimized) to improve your return on investments (ROI).
In other words, it helps you to know where to maximize. Given this, start by optimizing the pages that produce the most conversions to increase your website traffic to those pages.
Then, study landing pages that are not converting and tune them to improve conversions, or to ensure that the unproductive pages will start transforming website visitors to leads.
If you can optimize your sales page and other landing pages correctly, you will see a boost in product sales and more conversions. Let us go back to the digital product we used earlier for this example.
If you are selling different digital products, such as:
- How to make your first $1,000 as a freelance writer.
- Proven tips to make $500 every day with affiliate marketing.
- Five action steps to generate $3,000 from your blog per month.
These are three different digital product up for sale. Now, if, for instance, you find out that your sales page for “How to make your first $1,000 as a freelance writer” is getting as much traffic as the other pages but is not converting visitors to paying customers, you need to optimize that page to increase conversions and sales.
In consequence, being able to identify the pages to optimize will enable you to leverage on existing website users with a positive impact on sales.
Your website conversion optimization allows you to generate more leads from your existing traffic and convert them on your offers.
However, improving your conversions requires you to calculate your conversion rates to identify the ratio of your site visitors who are interacting with your pages.
Not gauging this metric and other measurables will decrease your conversion rates and make you lose money. As a result, make conversion rate optimization your business priority.