Benefits of Conversion Rate Optimisation
There are more benefits of conversion rate optimisation that goes beyond just getting people to complete a specific action on your website. These includes:
- Increase Net Profit not just revenue
- since the conversion rate optimization focuses mainly on maximizing your website or app performance, it requires no additional fixed costs or even an increase on your required marketing budget, which means an increase in profit disproportionately
- Maximize your marketing spend
- if your on-page conversions aren’t working that can reflect negatively in your marketing performance. CRO makes the most of your marketing budget without increasing your amount to spend.
- Better understanding of your customers
- gathering data of your customers behaviours and testing is a big part of CRO. As a result, you will develop a clearer picture of who your customers really are and what they wanted to achieve.
- Improve brand reputation
- conversion rate optimisation means that customers have a more enjoyable and satisfactory experience with your brand. This translates into positive customer reviews, testimonials, and Net Promoter Scores (NPS)
- Decisions are based on data
- decisions are made scientifically based on data and tests, so there is a solid rationale for every change that is made, and it is completely objective.
- Minimise development time and cost
- CRO not only narrows down the changes that should be made tocreate a positiveimpact on the conversion rate, but it also eliminates the negative and unnecessary development of time and prioritizes more on work that will have the greater impact.
- Make changes fast
- By making specific, incremental changes to your website, changes can be done as quickly and easily as possible without getting into a cycle.
- Improve search performance
- By optimizing your website, you will be rewarded by Google with the continuous improvement on your search results. Better content, functionality and site performance all contribute to your search rankings which in return drive more traffic to your highly converting site.
Developing a conversion rate optimisation strategy
There is no difficult and fast rule on how businesses should approach to conversion rate optimisation. Some will need to identify key tasks or goals for their customers to achieve and focus on certain process. Others will implement top-level concepts and run tests as the ideas are generated based on results and is not dependent on the objectives they are trying to achieve.
Either way, there are five key elements that must be included in any CRO strategy:
As with any digital engagements, it is critical to just define what you are trying to achieve by starting conversion rate optimisation efforts. Creating goals and specific metrics allows you to anchor all tests and activities back to the objective and maintain a sharp focus.
Speaking about defining objectives there are two different types that we look at in the context of conversion rate optimisation – macro and micro. Your macro-objectives are the big picture KPI’s like:
- Increase revenue
- Increase profit
- Grow lifetime customer value
- Lower churn rate
- Improve Net Promoter Score (NPS)
These are still the main KPI’s that we really aim to improve and define metrics that measure the success of the business. The micro-objectives, on the other hand, are metrics that may have little or no value, however, they may contribute to the greater macro-objectives. Examples of micro-objectives are:
- Increase click-through rate on a button
- Increase number of site searches
- Decrease bounce rate
- Increase adds to carts
- Increase email open rate
The important note for conversion rate optimisation is that it is necessary to always consider both the micro and macro-objectives.
Any ideas and hypotheses to be tested must always in line with your macro goal. An increase in a button click-through rate on its own is not all the time beneficial to the overall website revenue.
Most website tests must have an initial hypothesis to either increase or decrease in the micro-objective (i.e., button clicks) leading to an increase or decrease in macro-objective (i.e., sales). In some instances, the tested variation might ‘win’ when there are more button clicks, however, that has usually led to a decrease in revenue. By ensuring both the micro and macro-objectives are clearly tracked and identified from the outset means that this becomes a validated learning and improvement.