The Beginner's Guide to Conversion Rate Optimization (CRO)
Today, most marketing teams are structured to drive traffic towards websites, which then converts into leads for the sales team to close. Once this process starts to deliver results, marketers then seek to generate even more traffic, and hopefully even more success.
An oversimplification, but that’s the standard marketing playbook. Few marketing teams focus on getting more from existing traffic. That’s where conversion rate optimization (CRO) comes in.
In this blog post, we’ll teach you all about CRO — what it achieves, why you should do it, and how your team can execute it. We’ll explain how you can drive more results from your existing traffic so your content can work smarter, and not harder, for you.
What Is Conversion Rate Optimization (CRO)?
I’m glad you asked. Many websites are designed to convert website visitors into customers. These conversions occur all over the website — on the homepage, pricing page, blog, and landing pages — and all of these can be optimized for a higher number of conversions. The process of optimizing those conversions is exactly what CRO entails.
CRO is a huge, often untapped opportunity for marketing teams, and you might be surprised by the oversized impact you could deliver by fine-tuning your website for conversions.
When Is Conversation Rate Optimization (CRO) Right for Your Business?
Once your sales and marketing engine attracts website visitors who consistently convert into leads for your sales team, you should start thinking about CRO.
Most businesses have a finite demand for products and services, so it’s imperative that you make the most out of your existing website traffic. Tools like Google’s Global Market Finder can show you online search volume to give you an idea of your potential customer demand. Once you determine the threshold of your customer demand, it’s time to nail down how to get more out of your existing website traffic.
Below are three formulas to help you figure out how to tackle CRO at your company, and what goals to set:
- New revenue goal ÷ average sales price = # of new customers
- # of new customers ÷ lead to customer close rate % = lead goal
- Leads generated ÷ website traffic X100 = % conversion rate
To help you understand the impact CRO could have on your business, here’s an example of the formulas in action.
If your website has 10,000 visitors per month that generate 100 leads and subsequently, 10 customers each month, the website visitor to lead conversion rate would be 1%.
But what if you wanted to generate 20 customers each month? You could try to get 20,000 visitors to your website and hope that the quality of traffic doesn’t decrease. Or, you could get more leads from your existing traffic by optimizing your conversion rate.
If you increased the conversion rate from 1% to 2%, you’d double your leads and your customers.
The table below shows the impact …read more
Source:: HubSpot Blog