Why Conversion Rate Optimization is Important for your Online Business Growth?
Online business growth eventually thrives on amplified revenue and sales. However, in this extremely competitive world, it often becomes difficult for enterprises to achieve the desired set of results, in regards to growth and sustainability. Moreover, temporary business growth isn’t of much use and a majority of online firms usually seek prolonged sustainability, in terms of results and sales figures. Although, there are a host of resource optimization techniques to choose from, CRO or Conversion Rate Optimization is one technique that truly comes forth with some magical powers, especially in regards to unhindered business growth.
Here is a factual example of how the entire concept of CRO is supposed to work
For example, if a website is getting 3000 visitors on a monthly basis and only 10 percent of the same are getting converted, it means that almost 300 conversions are guaranteed. However, if a CRO program can amplify the conversion rate by 15 percent more, the number of monthly conversion skyrocket to 450
In this discussion, we would shed some more light on the concept of CRO besides unearthing the true potential of this resourceful industrial tool when it comes to lead generation and facilitating entrepreneurial growth. However, understanding the basics of Online Conversion Rate seems like a more appropriate start to this discussion of ours.
Online Conversion Rate: Meaning and Concept
The concept of conversion rate is derived from the number of website visitors who complete a specified action or rather a CTA, throughout a period of time. Although, a website gets a decent amount views on a daily basis, it usually desires a lot more— especially in regards to clicks, buys, and other actions. The conversion rate, therefore, signifies the number of visitors who are actually converted to valuable engagements.
However, the primary action or rather website goal might vary, depending on the nature of the business. Therefore, it is essential for any online business to measure the conversion rate, in order to understand its position in this keenly competed arena.
What is Conversion Rate Optimization?
While now it’s quite obvious that CRO or conversation rate optimization is a process by which businesses can improve the overall conversion rate, the associated technologies and concepts actually work in a highly unified manner.
Put simply, CRO aims at increasing the existing percentage of visitors who actually fulfill the associated website goals. However, the involved procedures aren’t as straightforward and the optimization process involves analyzing the visitor behavior for eventually converting them into leads. Website conversion optimization usually involves:
Collecting insights from the less accessed sections of the website as a part of hubristic evaluation.
- Collecting insights from the less accessed sections of the website as a part of hubristic evaluation.
- Collecting data via qualitative and quantitative website researches.
- Collecting insights by conducting competitive analysis.
- Making room for conversion roadmaps which eventually addresses the website issues, if any.
- Determining website problems, broken areas, and prioritizing them, accordingly.
- Creating testing hypothesis and conducting A/B testing.
- Analyzing test results.
As mentioned, conversion testing is an integral part of an efficient CRO program. Mostly, multivariate tests are conducted as iterative strategies in order to find the best way forward for the concerned business.
Fact: According to detailed studies, using long form version of landing pages can increase website conversions to by almost 220 percent.
A business must therefore know which segment is getting what kind of response over the social platform before making strategies. For someone who is looking to understand how conversion rate varies over Facebook for instance, according to the business choice, here is a detailed analysis, backed with facts:
However, the entire concept of Conversion Rate Optimization goes way beyond profits, leads, and metrics. If the bigger picture is looked at, an efficiently initiated CRO program allows a business to learn more about the website, competitors, and visitors. The procured insights, therefore, come in handy for implementation, in other areas of the associated organization.
What is the Importance of Conversion Rate Optimization?
CRO, if accepted with an open mind, can render a definite purpose and a different perspective to the concerned business. Although, Conversion Rate Optimization makes ample room for sales channel optimization, it’s way more than just a strategy. CRO makes a business understand the clear difference between getting more traffic into the website and converting the existing traffic into potential customers.
It is known that almost 75 percent of organizations hire experts to optimize landing pages, in order to improve conversions. The experts concentrate more on adding navigation bars as almost 84 percent of the pages having this flexibility are known to have shown signs of 100 percent boost in conversions.
While nothing is right or wrong in regards to the entrepreneurial landscape, it’s the existing CRO program that ascertains different business areas and comes up with a definite plan. Although in some cases, getting more traffic is the best way forward, a majority of functional CRO initiatives concentrate on converting the existing traffic into customers. Therefore, the importance of CRO can be gauged from the fact that:
- It offers a lot of insights regarding the behavior of the website visitors
- Helps discover a lot more about the existing customers
- Tracks customer journeys, even across social media platforms
- Improves the brand, website, and the lead generation process
- Restricts additional costs
- Increases profits
Research and survey reports suggest that almost 70 percent of the website traffic is contributed by individuals who are genuinely interested in the product. Moreover, only 30 percent of the visitors usually end up at the website by mistake or just to look at a specific bit of information. This actually validates the importance of CRO as any business would be interested in converting the 70 percent of the visitors into leads and eventually into customers.
Therefore, while some businesses which solely focus on increasing the traffic languish at the bottom of the pecking order, the ones which deploy functional CRO strategies for increasing ecommerce funnel conversion rate usually make it to the top. That said, we are not completely discarding the role of traffic amplification as at the end, it all depends on the bottom line of a business and what impacts it the most. A cohesive CRO strategy doesn’t go blindly about increasing the conversion rates but also looks closely at the current conversions and a host of other factors before making the call.
Benefits of Conversion Rate Optimization: How having a Balanced CRO program helps?
Once the requirement of a resourceful CRO program has been established, it’s time to look at the benefits or rather the advantages of conversation rate optimization, in detail:
Better justification of the PPC Costs
Conversation rate optimization allows companies to get the most out of their existing PPC plan.
Increased Chances of Nullifying Competition
With a major portion of visitors converted into leads, it becomes easier for a business to stay ahead of the competition.
Validated Digital Marketing Costs
It is a known fact that a major part of an online business’s revenue is dedicated towards potent digital marketing services, just to make the brand name popular. Therefore, if a CRO program can assist in SEO conversion optimization, it’s like a win-win situation for the company.
Immunity against the Social Media Syndrome
Although social media has drastically improved the marketing opportunities for businesses, it also has minimized the attention span of a majority of individuals. This is where a CRO strategy comes to the fore as it analyzes the sentiments of the visitors and caters to the shorter attention spans, by offering something that’s attractive, rewarding, and affordable— all at the same time.
Streamlined Business Efforts
Optimization even accounts for continual website changes where the business house concentrates specifically on creating a tempting landing page for the visitors. With every organizational aspect mentioned in a streamlined manner, it becomes easier for the visitors to understand the main goal and take actions, accordingly.
Improved Marketing Efforts
CRO readily makes a website more valuable to the affiliates. As there are a decent chunk of individuals who actually click and follow the CTA, it becomes easier for the affiliate marketers, partners, and online retailers to reap profits.
Conversion Rate Optimization is a way of amplifying the number of customers by converting visitors over select platforms like websites, emails, or even landing pages. While it is a known fact that advantages of optimization include maximized ROI, increased number of sales, and creation of a highly competitive website— CRO as a concept is way more than just a profit-making strategy.
It is eventually up to the business to decide the importance to CRO in regards to its bottom line and this is where our CRO expert comes into the picture; thereby helping the concerned organization understand more about its goals and take necessary steps in the forward direction. At the end, every online business requires actionable gains and profits which are only possible if Conversion Rate Optimization techniques are deployed, and that too by the experts.