Businesses of all sizes and industry sectors are looking for ways to increase website traffic and ecommerce lead generation at a lower cost. An increasing number of companies are currently utilizing conversion rate optimization to do this, and many businesses could be getting left behind if they don't take notice.
So what exactly is CRO?
Conversion rate optimization (CRO) is a process that improves the percentage of visitors to a particular website who convert into customers. A higher conversion rate can be obtained by testing various strategies, such as different prices or promotional offers, using targeted segments for marketing purposes, and altering a website's layout and content. A few examples of conversions include:
- Purchases or sales
- Registering for a webinar or newsletter
- Subscribing to a blog
- Downloading an e-book or whitepaper
- Registering for a free trial or demo
How can CRO benefit your business?
The main goal of CRO is to maximize the amount of web traffic that your website receives and increase conversions, leading to more revenue. By using CRO, you can also gain a greater understanding of your target market and maximize the return on investment (ROI) from marketing campaigns. In addition, this will help to build brand loyalty by increasing customer satisfaction through faster page loads and improved navigability. Lastly, it helps your business to develop a strong online presence that is more likely to attract new customers.
How can you calculate your conversion rate?
Now that you understand what CRO is and why it matters, it is imperative to think about how you can implement and improve the conversion rate optimization of your own online business.
Before you start, you need to know your current conversion rate. This will give you an idea of what your website is doing right and where it can be improved. Test your current CRO checking the number of orders divided by the number of sessions, or for a subscription-based site company, the number of orders divided by the number of unique visits. These estimates will provide you with a baseline, and from there you can develop a goal that you can work towards.
Once you have your current conversion rate estimated, it's time to start thinking about how to improve it. More traffic is not always the answer; in fact, improving the quality of traffic will typically give you better results than just increasing volume. The main reason for this is because visitors who arrive on a website through lower quality sources, such as paid search or social media, are more likely to leave without converting. On average, social media yields a conversion rate as low as 0.71%!
So, what is a good conversion rate and how can you achieve it?
There are no magic numbers for a reasonable conversion rate, as every website and industry is different. For some businesses, a conversion rate of 2% may be acceptable, but for others, it could be as high as 10%. Be sure to research your competitors, as this will give you an idea of what is considered standard in your industry. For example, according to Ruler Analytics, a healthcare website conversion rate may be around 6% on average, but a real estate site could be as low as 1%. A good rule of thumb though, is that the higher the conversion rate, the better. Your focus should be centered on your own business's growth more than anything else.
And whilst there is no magic number, there are some great examples of successful CRO techniques that you can use to increase your website's conversion rate, revenue, and ROI.
- Give your customers plenty of payment options – Allow your customers to pay for goods by using their credit cards, PayPal accounts, digital wallets, debit cards, gift cards, and even cash on delivery. Each of these payment methods has its own unique characteristics that would suit different kinds of shoppers best, so do your research. This will make it easier and more likely for your customers to make a purchase and complete the conversion process.
- Set up a chat widget for instant customer assistance – According to the Baymard Institute, the average rate of cart abandonment is 67.8%. This sort of abandonment has been on the rise as more and more individuals become used to rapid online communication. Customers may find it extremely annoying when they have spent their time going through your website checkout only to be unable to purchase due to lack of support.
A live chat widget, like the ones offered by LTVplus, will give your customers access to instant customer assistance; furthermore, research has shown that including this type of assisted service can increase your conversion rate by as much as 17%.
- Call to action (CTA) – As CRO is all about maximizing the number of conversions you get from each session, it's important to have an effective CTA. A CTA is a specific statement at the end of your page designed to persuade users to convert into leads or customers. Also, make sure your landing page's main benefit is easily identifiable to encourage visitors to click the CTA.
- Website Personalisation – Personalized website design can make a website more user-friendly and improve conversions, as users will feel like they're interacting with something that's tailored to their needs. For example, a website that uses a visitor's location to recommend local products will be more effective in increasing conversions than one without.
- Increase your website's speed – It goes without saying, the faster your website is, the more likely it is for users to complete their conversions. According to Medium.com, a "1 second delay in page response can result in 7% reduction in conversion." Try A/B testing your website to make sure it loads as fast as possible and also implement tools such as Google's PageSpeed Insights to see where you can improve.
These are just a few examples of CRO techniques, but there are many more. When you have implemented all of these design features and CRO techniques, be sure to monitor your success by using a conversion rate analytics tool, such as Google Analytics, heat maps (which allow you to track where users are clicking on your site), and more. Tracking the numbers will provide you with a constant stream of insight to help improve how well your business is performing.
We at Paton Marketing strive to connect businesses in Miami and South Florida with the experts and advice they need to sell more and succeed online. Working with an agency that specializes in conversion rate optimization will allow you to take advantage of advanced software and techniques designed to increase your site's efficiency. Get in touch with us to learn more about CRO and other ways you can take your marketing to the next level.