Conversion Rate Optimization(CRO) and its Importance in any Business.
If you are not a professional or marketing nerd then you may not be intimately involved with the term Conversion Rate Optimization (CRO). CRO is one such topic that is on top of your mind if you are a Business Development guy at a SaaS solution Business or an e-commerce startup.
So Lets get started first with:
What is Conversion Rate Optimization?
- A structured and systematic approach to improving the performance of your website
- Informed by insights—specifically, analytics and user feedback
- Defined by your website’s unique objectives and needs (KPIs)
- Taking the traffic you already have and making the most of it
Now, onto why CRO is so important:
Reason 1: There is always room for improvement.
No matter how well-designed your site is and no matter how many visitors you’re converting into users, it’s likely you could make the conversion process easier and more painless for them–leading to better results for you.
Reason 2: Paid advertising is only getting more costly and competitive.
Spending more on it is not the answer, especially if there are hiccups in your conversion funnel that need to be addressed. CRO works with what you have to help you to identify and deal with those problems first. Tweet this!
Reason 3: Optimization is about getting more of the right kind of customers.
It’s not just converting anyone. You are looking for people who will love your product and help your marketing efforts by telling everyone they know how great you are.
Reason 4: It’s essentially free.
CRO capitalizes on traffic you already have. This means you aren’t spending more money getting visitors to your site, just doing a better job of converting them once they get there. Optimization increases the return on your current investments, and converting a higher percentage of your current visitors is much more cost-effective than attracting new ones.
Reason 5: It lowers your customer acquisition costs (CAC).
In fact, doubling your conversion rate means halving your cost-per-acquisition (CPA), or how much each new customer costs you.
Reason 6: CRO helps maximize profits.
Not only that, but your profit is intimately tied to your conversion rate. Because you aren’t paying more to acquire these conversions, that profit goes straight to your bottom line.
Reason 7: It gives you more money to spend on additional acquisition.
More profit means extra money to spend on acquiring new users (plus, you already know where to spend it because you know which funnels are bringing in the rockstar users).
Reason 8: It makes you more valuable to affiliates and partners.
Not only will you earn more, but so will your affiliates—making you more valuable to them (while your competitors become less so).
Reason 9: CRO circumvents the limited attention span of the average visitor…
By giving them what they’re looking for sooner (before they have a chance to find it somewhere else).
Reason 10: It can mean winner take all.
Based on the concept of the “slight edge” phenomenon (also known as “the winner takes all” or “the winner takes most”), all you need to be successful is to be slightly better than your competitors. So if you optimize your site to deliver what users want in just a slightly better or faster way, even if it’s just a few seconds faster, they are going to go with you.
Reason 11: CRO creates momentum.
It creates a powerful flywheel of momentum that will increase your market share. The better your conversion rate, the more traffic you can afford, the more customers you get, and so on. You’re dominating your market before you know it.
That’s it, If you have any suggestions or any idea related to CRO, Then do tell us your views in the comments below. We would love to hear from you.
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