Benefits of Conversion Rate Optimization for Online Business

1. The Key Benefits of Conversion Rate Optimization

2. Helps You Understand Your Customers Better As an online retailer, understanding your customer is vitally important. You have to know who they are and what they want in order to be able to stock the products that they want or need, but also to market to them effectively. This is where CRO can improve your entire ecommerce business. Much of the research that goes into CRO has to do with who your customer is and testing is a big part of making sure your store is effective and helps you get to know exactly who you’re dealing with and what they prefer.

3. Gets You More Customers (my favorite!) You are probably already trying to reduce your cost per acquisition —conversion rate optimization (CRO) can help you do that in eCommerce. When you continuously optimize your online store, you tend to understand your customers better which leads to an improved overall shopping experience. The better the user experience for visitors, the more customers you acquire from the same amount of traffic you’re already receiving—meaning you don’t just save money, but you actually make more of it since it’s costing you less to acquire each additional one.

4. Increases Your Website Profits This is one of the most major advantages of conversion optimization. Even just a slight improvement in your conversion rate can lead to a massive improvement in your profits. Why? Because unlike advertising efforts, CRO provides immediate and tangible profits that go straight into your pocket, not into paying your advertisers. For example, let’s say you get 100 visitors come to your product page and only 5% (5) purchase it at $10 and your cost of product is $5 .

5. It Becomes Your Secret Weapon The truth is that many of your competitors are probably already doing conversion rate optimization or maybe not. If they haven’t started yet, they will start soon. Competitors can easily analyze your store to figure out what you’re doing for search engine optimization or social media marketing. But when it comes to CRO, it’s a whole different story. When you optimize your site, you’re not simply doing one thing. It’s a mix of all sorts of initiatives that play a role in this process.

6. Leverages Your Current Website Traffic One of the biggest benefits of conversion rate optimization is that it works with the current traffic that you already get to your online store. While there is the initial monetary and time investment in getting a page optimized, once it starts working, you really start making the most of the traffic your webpage already receives through SEO and other marketing efforts such as social or email. CRO isn’t about driving more traffic , but about making sure those visitors convert into customers. I wrote about what is cro to help you understand it.

7. Lowers Your Customer Acquisition Costs If you are in desperate need of some funds for a social media marketing campaigns or PPC, upping your conversion rate first is a great way to free up some money for that. When you optimize your site, all traffic coming from other campaigns will surely improve as well. This creates a cycle of money making that you’re sure to appreciate. Your customer acquisition costs will be lower as well since you’re more focused on improving conversions and converting those visitors to customers.

8. Allows You to Beat Your Competition When you actively do CRO, your online store is going to have an edge over the competition. Sometimes, that’s all it takes to win a customer—you just have to be a little bit more efficient, a little bit faster, and you’ll win every time. Think of it like a neck-in-neck horserace: the horse and jockey that actually win, even if it’s just by a nose, takes everything home—the money, the trophy—while the horse that comes in second, even just by a hair, gets nothing,

9. Improves Your Brand Perception A large part of conversion rate optimization is making sure your website looks legitimate. Why? Because online shoppers are very concerned, especially with recent security breaches at major retailers, about the safety of their information. Your website will look as legitimate as your business really is, which helps to build trust and encourage those who visit your store to go ahead and make a purchase. Reducing friction starts with a professional brand.

10. Google Will Love Your Web-store Google loves sending traffic to your online store if you can truly deliver what they’re searchers are looking for. It’s not a good sign if lots of visitors leave your site without making a purchase. There is something causing them to head back to Google and search again. This scenario can potentially affect your SEO rankings.

11. Increases Your Customer Lifetime Value Most marketing efforts for online retailers are centered on getting someone to click through a link, visit a page and purchase an item. If you offer specials and discounts through promotions, that’s a good way to encourage someone to actually make a purchase, but the reality is that even the most effective marketing campaigns will essentially be nullified by a website that is not optimized.

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