REASONS CONVERSION RATE OPTIMISATION IS IMPORTANT TO YOUR BUSINESS
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Reason why conversion rate optimisation is important for your business

The Reason why conversion rate optimisation is important to your business

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Conversion Rate Optimization is very important for every kind of websites. Below  is  the definition of Conversion Rate Optimization and Reasons Conversion Rate Optimization is Important to your Business.

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What is Conversion Rate Optimization?

 Reason why conversion rate optimisation is important for your business

Conversion Rate Optimization (CRO) is the process of improving the ratio of conversions to traffic on a website. For example if your website is receiving 1,000 visitors per month and 10 of them buy your product, you have a conversion rate of 1%.

Conversion Rate Optimization (CRO) is the process of improving the ratio of conversions to traffic on a website. For example if your website is receiving 1,000 visitors per month and 10 of them buy your product, you have a conversion… Click To Tweet


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Using CRO, one would look to steadily improve the conversion rate, without specifically looking to develop inbound traffic.

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To extend this example, if after three months your site’s traffic had naturally grown to 1,100, but the Conversion Rate Optimization work had increased the conversion rate to 2%, then 22 people would be buying your products online each month. This would indicate that the CRO had been extremely effective.

CRO is an often neglected aspect of a digital marketing strategy. I regularly see and work with websites receiving respectable and growing amounts of traffic but still fail to convert that traffic efficiently.

The enticement in SEO for some is to draw a line in the sand immediately after delivering traffic to the site. This is evident when someone comes to me after having undergone a successful SEO campaign for some time, but they still aren’t generating the business required to sustain it.

Importance of Conversion Rate Optimization

 Nothing is Perfect and Incremental Increases are Always Achievable.

Reason why conversion rate optimisation is important for your business

Your site could be the most attractive 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.

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Competition and Cost of Paid Advertising are Increasing.

reason-why-conversion-rate-optimisation-is-important-for-your-business

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.

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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.

 Lower Acquisition Costs Aid to Maximise Profit, and Give you More Money to spend on Additional Acquisition.

Reason why conversion rate optimisation is important for your business

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.


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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.

  Optimization Gives You Room To Concentrate on the Traffic that Matters.

 Reason why conversion rate optimisation is important for your business

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 rate 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.

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 It’s Kind Of Free.

 Reason why conversion rate optimisation is important for your business

Conversion rate optimisation makes use of the current traffic you already drive to your site. Extra money isn’t spent across different channels trying to obtain more traffic. Apparently 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.

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  It can Mean Winner Take All.

 Reason why conversion rate optimisation is important for your business

 

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.

Therefore, 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.

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