Conversation rate optimisation – or CRO, for short – involves optimising your website to increase the number of conversions it receives. We’ve previously written all about CRO here.
CRO is something many businesses fail to actually look at, not realising just how important and lucrative it can be. It can be all too tempting when you’re looking to boost your business online to jump straight into a marketing campaign. However, online marketing is an investment, and if you don’t have a strong website to send people to, you could end up losing money, even if the campaign is successful in sending more visitors to your site.
Let’s put this into perspective:
To keep it simple, let’s say you’re getting 100 visitors to your website, and one in 10 people who visit your site convert, giving you a conversion rate of 10%. If the average value of a conversion is £100, that gives you £1,000 in revenue.
You want to increase this revenue, so you decide to do some online marketing to send people to your website – this could be an SEO or a Facebook Ads campaign, for example. The campaign works, and increases your traffic five times over, giving you 500 visitors.
As the conversion rate of your website is still the same, 1/10, the increased traffic means your conversions are up to 50. This gives you a revenue of £5,000, which on first glance, could seem like a pretty decent increase. However, you’re also paying for your marketing campaign, which is going to eat into the revenue you’re making, and potentially mean you’re losing money.
Instead of spending money on a marketing campaign, what you should do first is work on improving your website to increase your conversion rate. Let’s say you manage to increase this from 10% to 30%. This means, that with the same initial 100 visitors, you’re now making £3,000 instead of £1,000 – without spending any money on ongoing marketing.
Now, you could go one step further, and work on increasing the value of a conversion. This could be through upselling, cross selling or offering higher-ticket packages, for example. If you were able to increase your order value to £200, this means you’d be able to generate £6,000 in revenue – all from that same 100 visitors.
You’re now in a position where you’ve increased your revenue above what you would’ve initially been able to earn from your marketing campaign. Now that your conversion rate and value has increased, you’re in a prime position to invest in digital marketing.
You begin your marketing campaign, which as we know is able to increase your traffic five times over. Now, with the increased conversion rate and order value, you’re able to generate £30,000 in revenue – for the exact same marketing spend as you would’ve paid before the CRO.
So many people decide to jump straight into a marketing campaign, failing to realise that if they spent some time upfront enhancing their website and ensuring it really works to convert, their marketing investment will be much more lucrative. If you’d like to discuss optimising your website to convert and ultimately get more business online, speak to our team at Engage Web today.
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