In today's digital market, it’s not enough to get customers to visit your website; they need to take specific actions for it to actually benefit your business. Marketing teams focus on moving traffic toward websites to build potential sales leads, by utilizing Conversion Rates Optimization (CRO). Companies can achieve long-term, sustainable growth, by getting the most value from existing users, while also pursuing potential leads.
This article will explain the benefits of utilizing CRO, by answering the fundamental questions of when, where, why, and how to improve your website's conversion rate.
A conversion rate is calculated as the percentage of visitors who complete a specific action as indicated on a website. In this regard, Conversion Rates Optimization increases your website's chances of turning visitors into paying customers.
While the definition of conversion may differ depending on the business - for example it could be filling out a form, subscribing to a service or blog, or purchasing a product - in each case, a business is utilizing the traffic they already have to increase growth.
High conversion rates indicate that your website is designed optimally to suit the needs of your target audience. Low rates indicate poor website performance, like slow load times, nonfunctional forms, or inconsistent CTAs, which could affect the customer's desire to complete an action.
Website traffic is essential to gaining more views on your products; regardless, this could prove futile if those views do not result in the desired action. CRO is key to boosting your company's revenue, because the more people that subscribe to a service or purchase an item, the better your chances of growing a sustainable enterprise. Particularly in industries with high competition or increased threats of new entrants, CRO could be a huge determining factor in the success of an upcoming business.
One significant benefit of a good CRO strategy is that it improves digital growth. Marketing teams can measure the performance of online campaigns and tweak the content design strategy, copywriting, and audience targeting to improve Returns On Investments (ROI). As a growth process, it’s important to take each phase of CRO one by one, instead of trying to take on the entire process simultaneously. This gives businesses a clear understanding of which areas to focus on, while trying to get the most out of available resources.
Depending on the industry, several factors can influence conversion rates, like the company goals, traffic channel, and market demographics. According to Statistica, 2.3% of visits to ecommerce websites in the United States converted to purchases in the second quarter of 2022.
While there's no fixed ratio of a good conversion rate, it’s up to businesses to decide what percentage matches their current standing in the digital market. Similarly, conversion rates occur on different parts of a website, from the landing page to the blog and purchase pages, so it’s vital to optimize all aspects of the website to increase conversion overall.
To calculate a conversion rate, divide the total number of conversions on the website by the number of visitors, then multiply by 100 to get the percentage.
Identifying when your website needs CRO is the first step, before you start developing a good strategy. Here are some ways your website might be affecting CRO:
If you're contemplating a CRO strategy for your website, you've already taken the first step in the right direction. The following is a guide to building a robust CRO strategy:
Depending on the type of business, your CRO strategy can focus on any or all of these pages:
A key takeaway from understanding the value of CRO is that you can do everything right in building your website, but the chances of turning visitors into paying customers are slim without a solid CRO strategy.
It can be challenging to outline and determine how to then implement a strategy that will work best for your business, which is why Outliant is here to help. As a startup consulting company, we execute the best strategies that optimize your CRO campaigns, by implementing analytical and marketing tools that increase sales and conversion rates. Schedule a discovery call with our analytics team, and let’s increase those conversions!
Did you know that 74% of buyers are significantly influenced by their digital experience when making a purchase?
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