Conversion Rate Optimization And The Wonders It Can Do To Your Business
Conversion rate optimization or CRO is a vitally important tool for businesses which operate online and if you are not investing time and energy into it right now, then it is time to change that ASAP. If you haven’t already heard of this then fear not, it is very easy to understand and once you see the impressive things which it can do for your business, you will understand exactly why so many companies are investing in and placing high priority on conversion rate optimization.
What Is CRO?
In a nutshell CRO is about converting the web traffic which you have into sales, it is about taking those visitors on your website to the next level, and closing a deal when they are there. If you consider your web traffic you’ll have some people there who are browsing, some who came to buy, others who got distracted, some who decided against, CRO seeks to convert as many of those individuals into buyers.
For the sake of argument let’s assume that your business sells just 1 product, and it costs $250, with a current conversion rate of 5%, that means 5% of your web traffic per month, are buying the product. Let’s assume you get 1000 people on the site per month, you are currently making $12500, not bad. Think now about the 95% of customers, and consider that for every additional 5%, you’ll nail $12500 extra. With just a couple of points increase you can make even more money and that is why it is such a big deal.
Conversion rate optimization is also a cash saving tool when compared with traditional, paid-for ads. What many business owners do is to go after paid for ads across the web to bring people in to buy their stuff, but in reality they already have the people actively looking on their websites, they just aren’t converting them. There is something wrong if you have 1000 people on your site every month, 5% of whom are converting, and you’re going out to chase more people, now if another and you remain on 5% then sure you’ll do better, but it would’ve been a lower cost option to work on converting a further 5% of the original 1000 which you had.
Conversion rate optimization is about way more than just making that one sale, it is also about increasing your chances of repeat customers and gaining brand loyalty, something which is worth more than its weight in gold. Through the same tactics which you use to convert someone for the first time, you can also ensure that people are coming back time and time again. Customer loyalty is hard to find in this day and age which is another reason why CRO could work well for you and your business.
Ultimately you will be able to grow your brand, increase sales, encourage customer retention and even take customers away from your competitors when you utilize the power of CRO.