A website is one of the most important tools your business owns, whatever your business aims to achieve whether that be making sales, displaying your services, getting customers to subscribe to your mailing lists or increasing downloads of tools/resources, you will need to monitor and understand your conversion rate.

What is conversion rate optimisation (CRO)?

Conversion Rate Optimisation is the process of understanding and testing website experiences and landing pages. The focus is to find the optimal design and messaging to produce higher conversions and generate more sales and leads.

Why do businesses neglect it?

The process of a conversion is when a first time visitor or a returning customer performs the intended action you want them to take. The more conversions made the more revenue or leads you will acquire. But why do so many businesses neglect this process?

Many businesses spend a lot of time and budget on trying to increase visitors and attract new customers to their website than actively trying to keep the existing customers. Studies have shown that 8 out of ten companies admit their web site is not doing enough to convert their visitors into customers.

Understandably getting potential visitors to arrive at your site is difficult, this can take time to develop which can eat in to a budget leaving little to no room for CRO. Studies have shown that 3 out of 4 CRO campaigns have found to increase revenue or generate more leads.[/fusion_text]

Why is CRO so valuable and why does your business need it:

1. Helps You Understand Your Customers Better

Understanding your customers is vital to managing and operating your business, you need to know what they are after in order to sell your products or generate more leads.

The main aspects of CRO is research, this involves understanding how your customers are using your website, understanding this process means you can identify bottlenecks on your website with sales funnels or generating leads.

2. Improves repeat custom

CRO works with your current website visitors, there is time and cost in optimising a webpage but once this page is working with your customers you will see an improvement in your conversions from the same visitors. This is because CRO isn’t about driving more visitors to the website it is about making sure current visitors convert more and carry on converting.

3. Measurable results

CRO campaigns involve testing and optimising sections of your website, each campaign relies on data, analytics and performance indicators to understand how the tests have performed. Because of this you can see results from each test which are measured against your business objectives meaning you can understand your return on investment and the impact on how your customer’s behaviour has changed.

4. Increase in revenue

An advantage of CRO is its ability to increase revenue. An improvement on the rate of conversions can lead to a positive change in your profits; this is because you can see measurable results without paying for advertisement.

Increasing your conversion even by 0.5% can produce a great revenue increase.

If you have:

  • Monthly visitors: 5000
  • Average order value: £20
  • Conversion rate: 1%
  • Total revenue of – £1000

And you increased your conversion rate by 0.5% your figure would then be:

  • Monthly visitors: 5000
  • Average order value: £20
  • Conversion rate: 1.5%
  • Total revenue of – £1500

A potential £500 difference per month

5. Lowers Your Customer Acquisition Costs

Increasing your conversion rate can help lower your acquisition costs as the traffic you send to an optimised website will convert more, this means that you are more focused on keeping these customers and converting them again.

6.Improves Your Brand Perception/reputation

Having a better user experience means a happy experience for your customers; they can achieve the desired result they want to with your website. This means they are more likely to recommend and share your website through online avenues, which will increase exposure, help gain backlinks and drive more sales.

7. Search Engines Will Love Your website

Your website will be delivering a better user experience and optimised webpages; this means customers can find what they are searching for and achieve the desired result, because of this they won’t be returning to search engines to perform another search, which means your websites rankings can be improved as your visitors have found what they are looking for and search engines can see this.