There are two ways to increase revenue on your e-commerce website:
- Digital Marketing - Increasing website traffic via Ads and SEO, we call it filling the top of the eCommerce funnel.
- Conversion Rate Optimization - Increasing sales (conversions) by fixing the issues due to which your visitors are leaving, we call it optimizing funnel.
CRO is the process of enhancing your website's design and content to boost sales.
Think of your website's path to sales like a garden hose. If you’ve turned the faucet on full blast (plenty of visitors), but only a trickle is coming out the other end (sales or other desired conversions), you know something is plugging or constricting the hose line.
That’s exactly what conversion rate optimization does. It looks for the places where you’re visitors are leaving the website and missing the sale – then figures out how to open up those “stuck points” to free up the flow and get more results out of the traffic coming in.
Benefits of Conversion Rate Optimization
1. Increased Revenue from Existing Traffic
With more visitors converting into paying customers, you start getting more sales from the existing traffic.
2. Increased Order Value per Customer
Apart from increasing conversions, CRO also lets you find out what influences your customers to buy more from you.
This is done by running experiments on cross-selling and up-selling to figure out which strategy is working.
3. 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.
CRO helps you understand your visitors both on macro and micro levels. It helps you gain valuable insight such as:
- Where they are getting stuck
- What they like and don't like
- Why and where are they leaving your website
4. Reduced number of complaints
CRO actually helps in reducing the overhead of your customer support team. By closely observing the behavior of your visitors, you can figure where and why they are facing issues/errors and remove them permanently.
5. Increased efficiency of your SEO and PPC efforts
If you are doing paid search, paid social or SEO, and are not optimizing your conversions, you might be leaving money on the table.
CRO is a superpower that can help you amplify results from Google Ads and SEO.
Your marketing efforts get multiplied by the increased conversion rate to provide a significant impact on your bottom-line.
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Why CRO is More Important Than Ever
1. Increasing Competition
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.
2. Your Secret Weapon
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.
3. Immediate Results
Unlike search engine optimization that can take months to show real, positive results, conversion rate optimization provides immediate results.
As soon as the changes are made, you will see a higher rate of users making purchases.
Finally, Let's Do Some Math
The beauty of Conversion Rate Optimization is that it creates compounding rewards.
The more optimizations you implement on your eCommerce product pages, the more quickly your conversion rate and revenue climbs.
For example, let’s say your current conversion rate is 2% and you have 100,000 monthly visitors who on average make a $150 purchase. That’s 2000 customers converting a month and $300,000 in revenue.
Then you optimize your product pages and your conversions increase just a half a percent (+.5%). Now you’re making $375,000 per month.
Then you continue to optimize and your conversion rate climbs another half a percent (+.5%) Your monthly revenue now climbs to $450,000.
Notice that you didn’t have to purchase any more traffic to increase your revenue.
By optimizing your product pages, you increased your revenue on your existing traffic.
This then frees up money to purchase more traffic, which then leads to even more revenue, and so on.
It’s a virtuous cycle.