Conversion rate optimization is known to decrease the cost of customer acquisition at the same time adding more value to your business. Optimizing your conversion rate enables you to expand your customer base and revenue per visitor. In fact, CRO helps you increase the visitor percentage to your website, which further converts into potent customers.
What is conversion rate optimization?
To describe it in its simplest form, conversion rate optimization is a technique through which online businesses enhance the rate of visitors converting the offers available on the site.
So what is the right time to think about CRO?
The moment your sales engines and marketing engines start attracting website visitors at a higher amount, you ought to consider CRO in terms of turning those website visitors into leads.
Any business has very few rates of demand for services and products, making it essential for you to create most of the existing traffic. There are tools that help you see search volume online so that you get a fair knowledge about any product demand.
How do you need to calculate CRO?
CRO is, in fact, a ratio. It shows you the percentage of converted visitors that visit your website.
Let’s show you the equation:
Total transactions / Total number of site visits x 100
Suppose, there are 100,000 visits on your website last month and of all those visitors, only 3,000 made a purchase of a product.
In that case, the CRO will be 3% i.e. 3,000/100,000*100. If the number of converted people would be 10,000, your CRO would be 10%.
Why CRO is vital for your business?
As long as the concept of CRO is concerned, it is a matter about numbers. The more sales it would generate, the greater the chance it will be to earn more revenue that means, your business is running on profit.
Let us assume that your company sells only one product that is alone worth $300.
Before, we have seen the conversion rate was only 3%. As only 3,000 visitors bought that product, which means your company has earned gross revenue of approximately $900,000.
Sounds great, right?
However, if the conversion rate would have been boosted to the second equation, that quantified the conversion at up to 10%.
In that case, your revenue will hit $3 million as 10,000 buyers buy that product that is worth $300.
Which is why conversion rate optimization is considered as the key to businesses willing to thrive for years to come.
Advantages of conversion rate optimization in your business
Reasons are numerous that why it is important to invest more money in CRO to get your business the edge.
· CRO helps you build and grow trust in your target audience
· This also encourages your business to be extended while enhancing the rate of customer retention
· Helps your business produce more revenue
· You can even take away customers from your competitor sites
· It helps you understand better about your consumers’ needs and preferences
· It also decreases the costs of customer acquisition
· It helps your brand perception to be improved
At a glance
With the help of conversion rate optimization, it is evident that businesses are improved as the conversion rates tend to be enhanced. Although, it takes a lot of hard work and time as well, when you are full with data, it is easy for you to achieve an increased rate of sales while dominating the industry you are in.
So, initially, begin with the understanding of conversion rate optimization along with the process of how it usually works. It is all about focusing on the techniques and strategies of CRO and committing zero mistakes.
Please note: If you have more data, chances are high that your website visitors would convert into leads.