Conversion Rate Optimisation (CRO), Can It Really Work?

Conversion Rate Optimisation...What is it and how can it help my business?

Ok, so I will try and keep this as simple as possible but give you enough information so you can really understand the benefit of CRO (conversion rate optimisation), and how it can lead to huge gains to your bottom line or lead generation campaigns.

CRO - what is it?

So CRO is an optimisation process whereby through extensive user research and data analysis, we create behavioural theories that identify trends in how users interact with your website.

These behaviours include how your target audience navigates on your website, what they are interested in and the types of information they want to see, what do they look for and the types of questions they want answered, the user journey of your website, friction points, the technical implementation of your website, as well as pretty much anything that will help prevent a user landing on your website and making contact with you or making a purchase.

Our research is educated through a combination of buyer psychology, by data and user feedback, allowing us to create a real picture of who your audience is and what makes them tick (We can of course go into detail in how we do this, but for now, let's keep things simple)

From these behavioural theories we can then design a series of A/B tests to prove or disprove the theory. By monitoring interactions, engagements and conversions on your website through analytics, we let user data make the decisions for us. Then by collaborating the outcomes (which have to be statistically valid) we can safely implement changes on your website which by using real user data, we know have the best chance of improving the conversion rate. The rate by which the number of users converts into leads/sales.

This means we can incrementally improve the number of leads and sales, month on month without having to increase the number of users landing on your website.

So here's an example of how the numbers work.

Example: Online Electronics Store

So let's say the stats are as follows:

1. Monthly website visitors: 100,000

2. Current conversion rate: 2% (i.e., 2% of visitors make a purchase)

3. Average order value (AOV): ￡100

This would mean the monthly revenue calculation (without CRO) would be:

= Monthly visitors x Conversion rate x AOV

= 100,000 x 0.02 x ￡100

= ￡200,000

CRO Implementation:

The online store decides to implement CRO strategies such as:

- Data Analytics and User Research

- A/B testing different call-to-action buttons

Resulting In:

- Streamlining the checkout process

- Offering limited-time promotions on the landing page

- Improving website speed and mobile responsiveness

After these changes, the online store sees an increase in its conversion rate.

New Conversion Rate: 2.5%

New Monthly Revenue Calculation (with CRO):

= Monthly visitors x New conversion rate x AOV

= 100,000 x 0.025 x ￡100

= ￡250,000

So that would give an increase in monthly revenue due to CRO of:

= New monthly revenue - Old monthly revenue

= ￡250,000 - ￡200,000

= ￡50,000 per month

Breakdown:

By implementing CRO strategies, the online electronics store increased its conversion rate from 2% to 2.5%. This seemingly small increase in conversion rate led to an additional ￡50,000 in revenue for the month. Over a year, this could potentially result in an additional ￡600,000 in revenue!

You can now see how powerful CRO can be, and how incremental changes to your website can provide significant results. The example above is based on ecommerce but we can achieve similar, if not better results on websites requiring the generation of leads for your business.

Hopefully this sheds some light on what CRO is and how it can help your business. If you want to know more feel free to visit our website https://www.weareweb.com or email us at [email protected]

Thanks

Jamie Carter

MD - We Are web