Why Conversion Rate Optimization Is a Critical Part of Business Success

June 25, 2019

Conversion rate optimization (CRO) is key when it comes to the success or failure of your organization. 

As the market becomes more competitive, organizations need to think about how they can maximize their conversation rate.

However, there are a lot of different tests that need to be performed before you start implementing CRO strategies. 

Sometimes, organizations are not able to maximize their CRO strategy when they start because they did not take the time to assess their business’s growth rate and needs. 

Focus on What’s Important 

It’s easy to get overwhelmed by metrics while analyzing digital marketing efforts. 

There are a lot of metrics such as click-through rates (CTRs) and cost-per-click (CPC) that you need to monitor. The ultimate objective is to ensure that digital marketing activities are conducted to maximize conversions at the most affordable prices.

Once you start the process of CRO, don’t stop - It must be ongoing to give you maximum results. 

Account for All of Your Conversions

Your conversion rate is the percentage of time it takes for your customers to complete a transaction with your business. 

You can calculate the conversion rate in terms of sales, poll and survey participants, webinar registrations, and email signups. 

Your conversion rate is determined by how many of your website's visitors become customers.The number of sales you earn is the most critical metric to track, but it’s not the only metric you should track. 

Quantifying number of orders placed, newsletter subscriptions, and email signups also relate to your overall conversion rate.  

CRO Can Help You Analyze Progress and What Needs to Be Improved

If you want to know whether your business is performing at par, above par, or below par in terms of goals set by your organization, look no further than CRO. 

The ultimate objective of CRO is to provide you a fair estimation of your business growth. With the help of Google analytics, you can see how your visitors reach your website and their online behavior. It can also help you set up goals and track conversions. 

With the help of analytics report, it is possible for you to scrutinize the parts of your business that are performing well and those that are lagging. This can be done with the help of informed data-driven decision making

To calculate your conversion rate, divide your goal completions by total number of sessions.

Analytics reports also help you determine how likely your target audience will convert to customers

Weaker conversion rates can help you see which strategies need extra attention or a redesign. 

CRO Helps you Save Money by Driving Campaigns 

If you want to increase the conversion rate on your Google Ad account, drive campaigns with a higher conversion rate to save money.

According to research conducted by Disruptive advertising, only 15.2% of Google Ad accounts with good conversion tracking have a conversion rate of less than 1%. 

42% of AdWords account manager have no idea if their campaigns are working. 58% have some level of conversion tracking in place.

Source

Conversely, the top 10% of precisely tracked Google Ad accounts have a conversion rate of a minimum of 20%. The median conversion rate for these Google Ad accounts is 50% higher than the average conversion on all tracked accounts. 

By affiliating with ad campaigns with better conversion rates, you can expand your horizon without spending more on your ad budget. 

Alternatively, you can reduce your ad budget after gauging the effectiveness of the ad campaigns and spend the leftover cash for testing new marketing collaterals. 

CRO Makes Your Website More Valuable for Customers

Always evaluate the different factors that are most critical in driving conversions on your website.

For example, the average cost to acquire a new customer on Adwords is $266.67. 

The average cost to acquire a new customers on Adwords is $266.67, and the customer lifetime profit is around $74,733.33.
Source

Because it costs money to acquire customers, you need to create a budget for your ad campaigns. 

Remember, your website, sales processes, and ad campaigns all need to be in sync with each other. 

This will help you to discover the different things that can make your website more valuable for your visitors and customers.

CRO Can Help You Attract New Customers

To succeed, businesses need to reduce their cost per acquisition. Businesses can use CRO by analyzing the user experience (UX) of their website to see if it can be improved to increase conversions. 

If you are trying to optimize your e-commerce store, the first thing to do is understand the needs of your customers to enhance their shopping experience.

You need to observe whether your online store is engaging the attention of your shoppers and the amount of time it takes for you to convert each online visitor into a customer. 

There are a number of CRO tools that can help you optimize your conversion, such as:

  • Google Analytics: It is a free tool that lets you reflect on the way visitors get to your website and their behavior once they get there. It lets you set goals that in the long run can aid in tracking conversion. 
  • Kissmetrics: Provides the option to engage with the customers on the basis of their behaviors. You can avail a lethal combination of segmentation and precision targeting at a single place. If you are interested in appealing to personas this is the best tool.
  • CrazyEgg: It is a heatmap tool that showcases where your visitors are focusing on your website. This way it is possible for you to use the right marketing texts and CTA buttons to get the right conversion results.
  • Qualaroo: It helps in understanding the perception of your visitors on the website. It is a tool through which webmasters can build, analyze, and manage an actionable insights program.
  • UserTesting.com: This tool helps you to get an answer to the $100 question: Why do people close your website after a couple of seconds? It also helps you to get the reason as to why do visitors avoid clicking on your CTA? To find such answers opt for this tool.
  • Feng-GUI: If you need appropriate feedback on your UI this is the tool for you. It assists you to optimize your page layout to maximize conversion.

By selecting an appropriate CRO tool, it is possible to retain the attention of your online customers. 

CRO Can Help You Stand Out From Competitors

Chances are if you are practicing CRO for the growth of your business, your competitors are not far behind. 

One of the benefits of CRO is that even though competitors can evaluate your SEO or social media marketing strategy when it comes to CRO, they won’t be able to “steal” your tactics because every company has a unique set of needs.  

For example, imagine you are in the process of optimizing a particular product page for your e-commerce website. Even if your competitor is able to find out you are using A/B testing, they will never come to know what exactly are your testing for. 

Since you are working with data that relates to a specific context, the information you collect will not be valuable to your competitors. If you are still unsure how your business can improve its conversion rates, research top digital marketing agencies with experience in your industry.