Blow Up Your Bottom Line (An Intro to CRO)
CRO stands for conversion rate optimization. It is the process of improving a website’s conversion rates through systematic testing. In other words, it is the process of getting more of your website’s visitors to perform a specific action that you want them to take.
An improved conversion rate can mean many things, depending on your website’s objectives. Here are some examples:
- More sales
- More leads
- More advertising revenue
What’s most compelling is that you can achieve all of this with the exact same amount of traffic you’re already getting.
It Directly Impacts Your Bottom Line
One of the largest draws to CRO is its direct impact on businesses’ bottom lines. Rather than focusing on vague metrics such as bounce rates or time on site (which in many instances, is only a vanity metric), it is very clear when you’re getting a return on your investment. In other words, your tests will either give you a winner (an improvement in your conversion rate), or they don’t.
For most businesses, the main objective of their website is closely tied to their bottom line. As mentioned before, this includes online sales, lead generation, advertising revenue – or any other action they want their visitors to take.
Let’s say a website sells widgets for $30 each, and the website converts 1% of its visitors into customers. In other words, the website makes $30 for every 100 visitors that arrive on the website.
Now imagine that it costs $20 in advertising to drive those 100 visitors to the website. That means there is a profit of $10 per 100 visitors.
Rather than converting 1 out of 100 visitors into customers (a 1% conversion rate), imagine if the website were able to convert just one more visitor for every 100 visitors (a 2% conversion rate).
Revenues would now total $60 per 100 visitors and the website’s profit would increase to $40 per 100 visitors. Converting just 1 more visitor increased the website’s profits by 300%.
From this example, it’s easy to see the power of CRO and how it can truly transform a business. But make no mistake; creating winning tests takes a lot hard work. Rather than following “best practices”, tests must be founded on solid quantitative and qualitative research to ensure they address specific objections and user experience issues that act as a bottleneck to conversions.
If your company has a website and isn’t engaging in CRO, there’s a good chance you’re leaving money on the table (money that your competitors are gunning for). If you’re interested in learning how we can help you optimize your website for conversions, don’t hesitate to contact us today.