Conversion Rate Optimization (CRO) is the process of increasing the conversion rate, which is an essential operation of any business’ marketing strategy. The optimization allows you to lower the customer acquisition cost by acquiring more value from the customers you already have. Through conversion rate optimization, your business can increase revenue from the previously existing audience and still acquire new customers.
Other benefits of conversion rate optimization include email sign-ups, subscriptions, downloading apps, completing surveys, or creating a user account on your website.
Here are the commonly used formulas which determine what goal to set and what will work best for conversion:
- New revenue goal / average sales price = number of new customers
- Number of new customers / lead to customer close rate percentage = lead generated
- (Leads generated / website traffic) x100 = percentage conversion rate
You now know what CRO is and how to increase it, but, why should you concentrate on this rather than traditional marketing approaches?
This is the primary benefit of optimizing the conversion rates. It offers immediate and tangible results unlike other marketing strategies, such as old-fashioned advertisement where you have to wait before someone notices your advert and try your products.
The effect could be significant with even the slightest increase in the conversion rate.
You Don’t Need A New Website
The other benefit of Conversion rate optimization is that it leverages the already existing website traffic from your existing online store. You will require an initial cost and time investment before having it optimized, but once it starts working and showing results, you will get more without having to spend on advertising products to a new market. Conversion rate optimization is not just about driving traffic to your website, instead, it aims at converting viewers to customers.
Allows You To Be Ahead Of Your Competitors
Creative approaches to conversion rate optimization add more value, legitimacy, and authority of your business over others if done frequently and accurately.
Assists You To Understand Your Audience
As a business owner, your top priority should always be to understand your target audience. This shows you what needs to be done to keep them, what kind of products intrigue them more, and the type of services that have a better customer feedback.
CRO is a powerful digital tool that helps you in improving your entire e-commerce business. It is all about knowing your target customers, testing what works best for them and their needs, and having them visit your shop or merely subscribe to your mailing list.
The infographic below shows 46 simple, but extremely effective hacks for increasing your conversion rates.
Need more help with Conversion Rate Optimization?
We created The Beginners’ Guide to Conversion Rate Optimisation which includes a Free Cheat Sheet to help you get started.
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