Why Conversion Rate Optimisation is Important
Why Conversion Rate Optimisation is Important
Table of Contents
No matter how well or how badly your online sales are going, you always have the opportunity to increase your website conversion. Here are some of the reasons why conversion rate optimisation is very important:
CRO Helps You Identify Your Target Customer Segments
Marketing teams waste a lot of money on the wrong traffic due to the lack of understanding about their target customer persona(s). Implementing conversion rate optimisation provides you with the tools required to gather important customer profile information which is not something you can easily get from the marketing channels. You are able to understand your customer personas and their behaviour on your website and by doing so you are then able to increase your website conversion.
CRO Helps You Increase Revenue Per Customer
The number two reason why conversion rate optimisation is important is because you’re able to increase the value (the revenue) that you get from each customer. When you understand exactly what your customers want, you’re able to upsell, cross-sell and retain those customers, thereby reducing your cost of customer acquisition.
CRO Helps You Reduce Your Google Ads Cost and Waste
The number three reason why conversion rate optimisation is important is if you’re doing Google Ads and you’re looking to reduce the waste in your Google Ad, conversion rate optimisation will help you make sure that your landing pages are tailored to your Google Ads, thereby reducing your cost of customer acquisition and also increasing your quality score.
CRO Helps You Increase the Effectiveness of Your Marketing Channels
The number four reason why conversion rate optimisation is important is because it will increase the effectiveness of your marketing channels. You’re able to increase the effectiveness of your PPC channel, your Google Ads, your SEO because all these channels get traffic to one landing page (in some instances).
Some companies have different landing pages for different channels, which makes things a bit more time-consuming, but if you’re using one single landing page for all the channels to your website then conversion rates optimisation is important because that’s the only way you can get the best value from all your landing pages and increase the conversion on your website.
CRO Helps You Identify Problem Pages on Your Website
The number five reason why conversion rate optimisation is important is because it will help you identify the ‘problem’ pages on your website. Google Analytics can tell you what the problem is but it doesn’t tell you why. You need conversion rate optimisation to understand the ‘why’ behind customers not converting on your website. A lot of companies are wasting money on digital marketing because they do not implement conversion rate optimisation.
The companies that have implemented conversion rate optimisation are the ones that are getting success online. So, if you’re looking to increase your website conversion then you really need to start looking at conversion rate optimisation as part of your marketing activity. It is not a marketing channel but it’s the optimisation of all of your channels (PPC, social media, etc) which enables an end-to-end funnel optimisation of your customers’ purchase journeys.
Conversion rate optimisation can even happen on social media. If you optimise your Ads on social media and you get people to just call your company number straight away and order via phone, they don’t necessarily need to come all the way through to your website to convert. But the whole principle of conversion rate optimisation is to optimise your customers’ interaction with whatever medium, whatever channel, even with email marketing.
When you send email marketing communications to your customers you need to use conversion optimisation principles in the copy of each of those emails in order to get the best results. So, when conversion rate optimisation it’s not isolated to just AB testing of landing pages, it’s a mindset, it’s a culture within an organisation that helps reduce customer acquisition costs to get the best ROI from your marketing budget. This is why conversion rates optimisation is very important.
CRO Helps You Improve Your Digital Customer Experience
Another reason why conversion rate optimisation is important is because it will help you improve your digital customer experience. Customer experience is what will encourage people to come back to your website and buy again. If they have a good experience on your website, then you’re bound to make them repeat customers.
Amazon is a perfect example. People always go back to Amazon every time to shop again and again, or even just to put things on their list and save them to buy later. The reason why Amazon is very successful is because it has very good digital customer experience and the only way they’re able to achieve that is through a culture of conversion rate optimisation. So, this is one of the reasons why conversion rate optimisation is important, to help you improve your digital customer experience which will ultimately increase your website sales.
CRO Cost is Relatively Fixed
Another reason why conversion rate optimisation is important is because the cost is fixed, compared to paid advertising. If you’re looking to increase your website traffic using PPC, you’re bound to spend a good chunk of money, whereas your conversion rate optimisation costs are fixed because you only need one skilled employee within your marketing team to be able to optimise all your marketing channels and your marketing activity using conversion rate optimisation principles and best practises.
You then only need a fixed amount of money to get access to the CRO tools and software needed to optimise your website as well. So conversion optimisation is very appealing because it’s a fixed cost which doesn’t overload your budget, but which helps you identify how best to optimise all the different marketing channels you are using, in order to increase your spend on channels that make you money and decrease your spend on channels with little return.
When talking about conversion rate optimisation, a lot of time is spent talking about tools and software solutions that are needed for this important task. However, what you need most (and especially if you have only a small team and a limited budget) is the skill within your team to optimise your various channels and a process that will effectively facilitate this.
Conversion rate optimisation should be embedded within your SEO and all your marketing channels because this is where your customers’ conversion actually starts. If your channels get the wrong kind of traffic to your website (I.e. not your target audience), even if your website is optimised for conversion, that traffic then won’t convert.
So conversion rate optimisation should be a culture within every organisation. It should be a mindset that guides the way you think, the way you act and the way you make your money.
