Grow Your Business With Effective Conversion Rate Optimization
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Does Conversion Rate Optimization Work?
The short answer is yes, well, mostly yes.
If you asked us ‘does effective conversion rate optimization work?’, then the answer is absolutely.
Below, you will find what CRO is, why it is important and how effective CRO will make a monumental impact on your business.
And trust us, if growth is your goal, then you NEED to know more about CRO.
What Is Conversion Rate Optimization (CRO)?
Quite simply, CRO is the practice of increasing the percentage of visitors who take a desired action on your website.
This desired action, or conversion, is the completion of a goal. This could be when a visitor:
- Makes a purchase
- Signs up to your mailing list
- Adds an item to their cart
CRO is all about your customers, and concentrating solely on data in Excel sheets does not necessarily allow you to understand your visitors. You need to know what brings your visitors onto your site, why they leave and what persuades your visitors to convert and take the desired action.
Knowing these factors allows you to deliver the best user experience possible, which will then increase your conversions.
Lastly, it’s important to understand that CRO is not a one-time effort, it is an ongoing process. You will see a considerable increase in revenue.
How to Calculate Conversion Rate
The conversion rate calculation is quite simple, you divide the number of conversions by the total number of visitors, and then times by 100 for the percentage.
Hotjar provide a good example: if a web page has 18 sales and 450 visitors last month, then your conversion rate is 18 divided by 450 (0.04), and then multiplied by 100 which is a 4% conversion rate.
Why Is CRO Important For Business Growth?
This question is easy to answer because there are many good reasons.
According to Statista, the number of internet users has increased from nearly 230 million in 2010 to 302 million users in 2021. Habits have changed with more people online and buying products and using online services.
With this in mind, here are some of the main reasons why CRO is important for business growth:
- The most obvious one, it improves conversions
- Increases sales and revenue
- Very cost-effective way to increase ROI
- CRO makes your traffic acquisition worthwhile
- Helps you to understand user behaviour
- Gives you the opportunity to improve UX, this goes hand in hand with improving SEO
- Allows you to scale your business without increasing marketing and advertising spend
- Reduces customer acquisitions costs (you can see how this works in the funnel below)
It is clear, from the list of reasons, that CRO can have a highly beneficial impact on business growth. However, without effective CRO, you are far less likely to see business growth.
Successful businesses work with BambuSix to identify growth opportunities, understand customers, increase conversion rate, and grow revenue. What can we help you with? Tell us a little bit more about what you’re looking for!
What Is Effective CRO?
CRO is not a one-time activity. We have found that companies with a structured approach to improving their conversion rates are twice as likely to report large increases in revenue.
Econsultancy’s CRO report echoes this by stating that top-performing companies (companies whose conversion rates improved over the last 12 months and are satisfied with their conversion rates) are more than three times as likely as the mainstream to have a structured approach to improving conversion rates.
The first thing to know is ‘optimizing’ your blog posts by just having a colourful CTA doesn’t cut it anymore. You need to spend time understanding who your customers are. Doing this is one of the most important practices for effective CRO. They are the people who matter to your business and have the answers you need to improve it.
As Hotjar suggests, when you can paint a picture of what your customers’ needs are, their hesitations and concerns and their desired outcomes, you can create the solution that addresses these issues and desired outcomes.
Effective CRO will also be a strategy that saves you a great deal of your time, money and marketing efforts. If the strategy is done correctly, you will increase your ROI and revenue.
Please note, although it might seem like a good idea, don’t just copy what your competitors are doing. Your goals, objectives and overall process need to work for you. If you focus on following what your competitors do or what you read online, growth is harder to achieve because you are not spending time to understand your customers, and use their insight to develop an effective CRO approach.
At BambuSix, our growth and optimization programs are designed to maximize Conversion Rate, Revenue, and ROI. We use our extensive experience in CRO to focus specifically on your goals. It’s never a one size fits all approach.
What Level Of Expertise Do Businesses Need To Make A CRO Impact?
As we mentioned above, making a CRO impact does not mean copying the exact strategies you read online, or doing what your competitors are doing. There are also multiple CRO challenges to address to implement effective CRO which marketers commonly trip on.
For example, without expert advice, it is difficult to create a structure that will support your CRO efforts. You need a solid plan that is aligned with your goals and ensure you highlight the gaps in your current CRO efforts. Another consideration is being able to effectively use CRO tools that won’t end up being an expensive waste of your time. No one wants to spend time and money gathering irrelevant data. Tools are also made for specific objectives, knowing how and which to use is crucial.
Of course, having a solid level of expertise is a complete must, but as we have found from working with top marketers, product managers, and growth leaders at companies including Facebook, Dropbox and Paypal, extra support with evaluating customer experience and driving conversions makes a long term impact on business growth.
So, Does CRO Really Work?
Like with many marketing efforts, it’s a yes, but only if it is implemented effectively. CRO is an incredible way to reduce ROI, understand user behavior, scale your business without increasing spend and make your traffic acquisition worthwhile.
Having an in-depth knowledge of all things optimization is the sure-fire way to implement effective CRO strategy. It’s easy for marketers to feel they have the skill sets to implement CRO themselves and end up missing large opportunities.
Discover the power of expert CRO
Speak to one of our Conversion Rate Optimization experts to discover how we can boost your main business levers, find the best opportunities within all your funnels and start aggressively growing your revenue.