Attracting new users is the main reason why businesses set up websites in the first place. By gathering users information you are on the right track of making them customers. Now this goal can be achieved by many different methods including: SEO, PPC, social media and blogging engagement. All of these techniques can help drive traffic to your website, but in order to ensure your marketing efforts are working, you need to look at your conversion rate. If you are able to bring in a large amount of visitors but aren’t getting any conversions, then this can pose a huge issue.
Conversion rate optimization plays a huge role in the success of your business. CRO helps to maximize incoming traffic to your site, by converting them to email subscribers, which in turn helps your email marketing campaigns. There is no doubt that CRO is a great tool to boost conversions, but let’s take a further look into the many benefits CRO has to offer:
CRO contributes to paid advertisements
Paid advertising is a great way to compliment SEO strategies. Paid advertising not only increases the exposure of your brand and brings in more visitors, but also allows you to test out certain keywords. Now it’s known that paid advertising can be on the more expensive end, but here is where CRO comes into effect. Paid advertising works in the way that you are paying for every visitor who visits your website. If the visitor didn’t end up converting you just lost money. However, improving your conversion rate allows you to get the most out of your paid advertising campaigns and gain those conversions.
CRO brings in customers
It may seem pretty obvious, but if you are able to improve your marketing strategies you will see an increase in customers. By increasing your conversion rate, you have the potential to acquire increased profits. This is able to be done because you have already paid to get the visitors to your website in the first place, so any additional conversions go right to your bottom line.
Another added bonus of CRO is that is helps to lower your customer acquisition cost. The overall CAC depends on how much you spend on average for each new customer acquired. So this means that if you increase your websites conversion rate, your CAC will decrease.
CRO plays a role in driving customers away from potential competitors. The more visitors you convert, the more you are taking away from other competition. By increasing profits, due to increased conversion rates, you are able to allocate your funds into the marketing budget. This allows you to focus more on getting your company’s name out there and continuing the process of gaining conversions.
Now that we have discussed some of the benefits with CRO, let’s discuss statistics to reiterate its importance.
- Only about 22% of businesses are pleased with their conversion rates. – Econsultancy
- 57% of B2B marketers say conversion rate is the most useful metric for analyzing landing page performance- Ascend2
- Only 52% of companies and agencies that use landing pages also test them to find ways to improve conversions MarketingSherpa
The overall importance of CRO is that it helps with getting things started. Once you have learned the proper way to convert your customer’s, you are headed in the right direction of success. CRO helps with gaining customers in a shorter period of time and helping with other marketing campaigns. Essentially, it functions as the foundation where all other efforts reside.