According to a research, 60% of companies said that CRO has impacted their marketing strategies and almost 100% companies stated that Conversion Rate Optimization (CRO) has definitely enhanced their efforts in the digital marketing realm.
The real question is; what is the significance of CRO and why it is a crucial element for e-commerce websites?
Conversion Rate Optimization:
CRO means the rate at which people visit the website and further converts into customers. For instance, 100 people visit the website and 4 people out these convert into customers then the CRO is 4%. The rest are just the visitors and cannot be considered as customers. There are only two ways of increasing the traffic on the website:
- Increasing the traffic of the visitors on a website when the conversion rate remains the same
- Increasing the traffic on a website so that the conversion rate also increases
Conversion Rate Optimization is basically a process that is data-driven and generates traffic on various sections of a website. Conversion Rate Optimization uses A/B testing of the website that helps you decide which report would you use to determine where users start or exit the conversion funnel.
Importance of Conversion Rate Optimization to E-commerce Website:
- CRO is a segment that can easily be applied to shopping carts, landing pages, product pages, and register/sign-up pages. But, the most common application of CRO is for an e-commerce website.
- CRO helps in converting those numbers to buyers without increasing the traffic. For example, for every 100 visitors now the conversion rate is 6. Therefore, now the new conversion rate is 6%. The traffic remains unchanged but the conversion has increased and this is the positive effect of CRO.
The Advantages of Conversion Rate Optimization:
- Know The Customer:
Knowing your customer is important when in the e-commerce business. Who the visitors are and what are their needs and preferences should be known to you in order to stock the products accordingly. Therefore, this is where CRO comes into play. The research that is conducted under CRO process deals with who the customer is and then testing is done to ensure that the store is effective enough to deliver what these customers need. CRO also makes you understand the hindrances that you must be facing in your sales funnel.
- Attracts More Visitors:
We all in business want to reduce our cost per purchase and the best part is for e-commerce, CRO does it at a great price. When online stores are regularly optimized then chances are we understand the needs of the visitors in a better way. The user experience becomes flawless with that, the conversion rate goes higher with the same amount of traffic generation. Therefore, by CRO, you are not just saving those additional bucks but also attracting more customers from the same amount of visitors.
- The Website profit Increases:
This is one of the biggest benefits of CRO. With a minimal increase in CRO a massive enhancement can be seen in the overall profit generation. If advertising is your game then you might end up generating intangible profits. Whereas, if CRO is what you rely on then you may end up generating tangible outcomes that directly go into your bank.
- Acts As A Turning Point For The Business:
Let us assume that your competitors are following the CRO methodology to generate more profits. But if not, then they will try and figure out what analogy are you using for SEO and digital marketing strategies. However, the lucky part is that CRO is not just one platform. It is actually a mix of everything. Even if your competitor tries to run a single tool and figure out what are you using to generate traffic then he will fail big time. The best part of CRO is that it is not industry specific. What works for you may not work for another company.
- Google Helps Your Website:
Google’s featured snippets allow the customers to find out results for what they are actually searching. Google helps you generate online traffic if you tend to deliver what the online searchers are searching for. If visitors are landing on your website but are not purchasing anything then that is not a great sign. In fact, according to google if a website takes more than 4 seconds to load then that company loses more than 40% of the business. CRO here plays an important role in directing the process.
If your business is not linked to CRO then chances are you are actually losing a lot of business generating online.