6 BENEFITS OF CONVERSION RATE OPTIMISATION (CRO) FOR ONLINE RETAILERS
But, what is Conversion Rate Optimisation (CRO)?
E-commerce websites are built to convert online traffic into customers. These conversions can occur all over the website - on the homepage, service pages, product pages, blog posts, landing pages - but like anything in marketing, it can always be optimised! The process of optimising the customer journey is the definition of CRO.
Why should I invest in CRO?
CRO can be your best friend when it comes to optimising other channels, especially SEO and Paid Search:
SEO – Google loves online stores to be as efficient as possible in terms of customer experience. If your sales journey is not up to Google standards, your effort of driving organic traffic will not be as rewarded as your competitors who deliver a better Customer Experience. SEO and CRO must work together in harmony to maximise visitors, improve conversion rates and increase revenue.
Paid Search – We all hate spending a lot on cost per acquisition (CPA), especially when it is a competitive keyword or worst of all when we’re getting traffic from paid search but no conversion. CPA is directly affected by your Quality Score on Google Ads. Keeping your Quality Score high and your CPA low can be a huge benefit to your PPC budget over time. The only way to do this is by optimising your conversion rate through CRO.
CRO can help you boost revenue from traffic you already have which is why it’s so cost-effective.
Ok! I am sold! SO what are the 6 benefits?
1. Know How your Customers Behave Online
As much as a heuristic approach can be beneficial for short term wins, the first and most important part of a CRO strategy is to understand your customers and how they behave on your website. The research phase identifies pain points and areas to improve in order to test hypotheses efficiently.
Quantitative Data: Analytics allows you to make hypothetical decisions based on figures. For example, you can analyse relevant data such as bounce rates, demographic, type of device, site behavior and type of audience from your web analytics tools to obtain in-depth quantitative data on what people are doing on your site.
Qualitative Data: This type of visitor behavior analysis is really important to finalise qualitative hypothetical decisions. Qualitative analysis tools such as heatmaps, session recordings, surveys and so forth, can help you make tactical decisions based on facts. Having these insights can help you create winning hypotheses. There are plenty of cost effective tools that automate and assist the collection of qualitative data.
2. Improve efficiency of other online channels
Digital Marketing's role is simply to direct customers towards your online store so they can make a purchase online. CRO can significantly assist optimisation of all digital channels on the customers’ buying journey. SEO and Paid Search are the two biggest channels that will be improved significantly by CRO.
3. Create a Culture of Experimentation
One of the most powerful ways to create a culture of experimentation is to share those quick wins. That’s because those quick wins can create a buzz internally when initiating a CRO program. They will have a huge impact and will create awareness around the business and potentially change the business’s mindset towards testing and learning.
4. Increase Customer Lifetime Value
CRO can directly influence Customer Lifetime Value (CLV) through its customer retention and re-engagement tactics. CRO can actually increase the value of sales and the loyalty of customers.
5. Learn when an experiment fails
Online retailers should test everything before rolling out a new website or significant changes to their site. We can never be certain that changes will positively impact sales. We need to learn quickly if our experiment fails and efficiently re-assess and adapt accordingly.
6. Save Money
CRO is not only highly efficient, it is also be cost efficient and has the potential to increase your ROI significantly with just one single test.
The benefits of CRO continues past these 6 advantages we’ve mentioned. The role of CRO is to ensure that your digital presence is as effective as it can be with continuous learning of your customers through data.
If you are interested in learning more about Netstarter's CRO or eCommerce solutions please contact us on 1300 725 628 or visit our contact page.