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Guides & Advice

Why is CRO the most important marketing activity for businesses?

By Chris Green / February 23rd 2018

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Making sure your website is as effective as possible is important to any business. Conversion optimisation is crucial to making sure that your site maximises its potential.

We explain why effective conversion optimisation is the most important marketing activity for businesses.

What is it?

Imagine you’ve got a menu for your favourite takeaway. You reach a point where you are so comfortable and reliant on their service that you don’t even need to look at it. You know what you need, how much it will cost and have an idea of the level of quality and service you’ll receive.

Now imagine that, all of a sudden, a new menu for that same takeaway drops through your door. A new design, new images, new logo – everything’s changed. Suddenly, the thing that was once comfortable and familiar is different.

Suddenly, all your ideas of value, service and quality are challenged by a new menu. You might start thinking about other takeaways and what they can offer instead. Your favourite takeaway will invariably have other customers, but what if they’ve begun to think the same?

Illustration of a person at home looking at a takeway menu that has just been put through the letter box

The key question here is whether or not a large-scale change has had the desired effect.

So how does this relate to conversion optimisation? Well, consider the definition:

“Conversion optimisation (CRO) is the process of optimising your site to increase the chance that visitors will complete specific goals or actions.”

Or in simpler terms, CRO is…

“Using data and research to inform changes that get people to buy even more of your stuff.”

This is why it is important. It’s a case of finding the right changes to maximise on potential, not necessarily making a huge sweeping change and hoping for the best.

How does it work?

Conversion isn’t so much about an obsession with increasing conversion rate as it is about optimising the way that you generate revenue

For example, you have a website where, on average, you have:

1000 customers spending £10 per order, 4 times a year. This gives you a baseline of £40,000 in revenue.

Illustration of a person using a calculator

Spending your efforts on increasing the number of customers by 20% then means you end up with 1200 customers. Following the same figures, this gives you an extra £8000 uplift in revenue.

If you were to increase everything by 20% and not just your customers, you’d have an average of 1200 customers, spending £12, 5 times a year. This gives you an overall revenue of £72,000. A £32,000 uplift in revenue from that initial baseline.

CRO is effective because it can act as a multiplier effect, taking all of your other marketing efforts and helping to make them work harder.  Our article about the multiplier effect goes into more detail and discusses the impact it can have.

How should your business use CRO?

As a business, you need to have a specific mind-set that helps make the most of CRO and organise your efforts.

Keep the following in mind:

  • Have someone act as the voice of the customer – this should be someone who actively engages with and understands your customer base
  • Utilise research and act on data and insights
  • Have an experimental culture
  • Avoid making changes based on assumption or the viewpoints of senior staff/upper management, etc.
  • Test everything

How can we help to optimise your site

Improving the way your website converts customers can have a huge effect on your business. The multiplier effect can be of massive benefit because it makes sure your business’s marketing is delivering on its potential and maximises ROI.

We’d love to explore how our conversion optimisation strategies could deliver results for your business. To arrange a brief telephone conversation with one of our team call 08447 550 350 or get in touch to find out more.