5 Reasons Conversion Rate Optimisation is Important to Your Business
1: Competition and cost of paid advertising is increasing.
Paid advertising is currently at the strongest it has ever been, and competition for clicks and paid real estate in search results is at an all-time premium. Spending more money to compete may seem like the best option, but it isn't the right way to approach your business.
What if you could work with the traffic you already have to improve conversion rates? Conversion rate optimisation (CRO) allows you to concentrate on your current traffic, improve conversion rates, generate more ROI, and ultimately climb the paid search competition ladder.
2: Lower acquisition costs help to maximise profit, and give you more money to spend on additional acquisition.
Increasing your conversion rate has the added effect of reducing your cost per acquisition (CPA). Doubling your conversion rate actually means you halve your CPA, meaning each new customer costs you half as much to acquire. It's also important to note that profit is closely tied to your conversion rate. If you are not paying more money to acquire additional conversions, all of that profit goes into increasing your bottom line. The knock-on effect of increased profit is that you now have more money to spend on acquiring new customers, and are in a stronger position to bring those much sought after users.
3: Optimisation allows you to concentrate on the traffic that matters.
Many companies fall into the trap of looking at the whole site conversion rate at a top level and make heuristic decisions without much justification. Segmentation is the key to conversion optimisation. Understanding which segments of traffic are converting or not converting is essential. This in turn allows you to concentrate on the traffic that really matters and not waste resources making changes that won't have any real impact on your ROI.
4: Nothing is perfect and incremental increases are always achievable.
Your site could be the most beautiful site on the internet from an aesthetic point of view. Your conversion rate could be sitting above the market average and your profit could be through the roof. But what if you can make more money? Conversion optimisation is a process that should be continuous for the lifespan of your online business. There are always opportunities to make improvements to your site, by better understanding your target market and the decision-making processes involved. Testing can squeeze out incremental increases that over time add up to a great step forward and ultimately more profit.
5: It's 'kind of' free.
Conversion rate optimisation makes use of the current traffic you already drive to your site. Additional money isn't spent across different channels trying to acquire more traffic. Obviously there will be some cost involved, usually in the format of resources, but in essence it can be seen as 'free'.
CRO increases your ROI either by improving conversion rates or increasing the quality of conversions through your site. This is a much better and cost effective way of making more revenue over the tactic of throwing money at all channels and trying to acquire more visitors. That being said the extra revenue opens doors to acquiring more traffic, a cycle that can be exponential.