Using CRO to Increase Customer Acquisition and Decrease Marketing Costs
What is Conversion Rate Optimization?
Getting potential clients to your website is only half the battle. Once they’re there what action do you want them to take?
- Call your business
- Fill out a contact form
- Sign up for an email newsletter
- Download an ebook, etc.
In regards to internet marketing, conversion rate optimization (also called conversion optimization, lead conversion, or just CRO) is the process of increasing website leads and sales by creating a more seamless experience for a website or landing page visitor without having to spend more money on attracting additional web traffic.
Whatever it is you want your visitors to do, this action is what you want to measure and what you are looking to optimize.
It’s the process of experimenting with website design and content variations to determine which ads, layouts, copy text, offers, videos, and images will convert prospects into paying customers. At its most fundamental, CRO means figuring out what potential clients are looking for when they arrive at your site and then presenting that to them.
Key Metrics to Conversion Rate Optimization
Call to Action
Is your call to action (phone number, contact form, etc.) clear and easy to find? Are you considering mobile visitors (i.e. do you have a “click to call” button)?
What problem is your potential client trying to solve? Does the information presented on your website speak directly to this problem in a compelling way? It should tell them clearly and directly exactly why they should pick up the phone and call you.
Look & Feel
Are your graphics relevant, well-placed and unique? Or are they distracting and boring? Do you have a lot of unnecessary or misplaced text? Does the website project the image you want people to have of your business?
Does your website lead potential customers to believe you are the answer to their problem? Your website should feature case studies, awards, reviews, portfolios, and testimonials. These are powerful conversion rate drivers.
How Conversion Rate Optimization Works
Conversion rate optimization actually shares many of its basic principles with direct response marketing (think mail, radio, TV, and print ad campaigns), which have been around for almost 100 years. Like direct response marketing, modern day conversion rate optimization utilizes human psychology, A/B split-testing, call tracking, and audience testing to optimize your website. Some test methods, such as split testing (also called A/B testing) enables us to monitor which headlines, images and content help to convert more of your website visitors into new customers.
It’s important to understand that conversion rate optimization is also about getting more of the right kind of website traffic (highly targeted), not just blindly optimizing the conversion rate of a given page or campaign.
Gathering, analyzing, and testing visitor data is key to optimizing your website and landing pages, along with developing a strong marketing approach. It’s amazing how many business websites there are that don’t employ even the most basic of CRO tactics. This opens the door to a huge opportunity for those that do.
Conversion Rate Optimization Is:
- A structured and systematic approach to improving the performance of your website.
- Informed by insights, specifically analytics and user feedback.
- Defined by your business’s unique objectives and needs (key performance indicators or KPIs).
- Increasing customer acquisition by taking the traffic you currently have and getting more from it.
Conversion Rate Optimization Is Not:
- Based on guesses, hunches, or what everyone else is doing.
- Blindly changing the color of buttons and images on your site.
- About getting as many users as possible, regardless of quality or engagement.
Why is Conversion Rate Optimization So Important?
Reason 1: Digital marketing is getting more expensive and competitive.
Throwing more money at it is not the answer, especially if there are problems in your current conversion funnel that need to be addressed. By playing chess, not checkers you can gain a massive advantage over your competition simply by implementing CRO tactics into your current marketing strategy.
Reason 2: It lowers your cost per acquisition (CPA).
Higher conversion rates = better ROI. In fact, doubling your conversion rate means halving your cost-per-acquisition (how much each new customer costs you to acquire). This is almost always more cost effective than getting more website visitors.
Reason 3: It gives you more money to spend on additional acquisition.
More profit means extra money to spend on acquiring even more customers. Plus, you already know where to spend it because you now know which funnels are bringing in the best, customer producing traffic.