Conversion rate is one of the most important data points that you can use to track your company’s success. It is the metric that monitors the percentage of customers that complete a desired action, such as making a purchase. A low conversion rate can be a sign that your marketing strategy is ill-constructed or falling short.
In the quest to improve conversion rates, many companies get lost in the data. While leveraging relevant statistical information is important to refining your marketing strategy, you must also develop an intimate understanding of your consumers.
With this in mind, the team at Enormous Elephant has created this guide to help you understand the truth about conversion rate optimization. As a Dallas-based conversion rate optimization agency, we know what it takes to get the job done right.
By recentering your focus on the consumer, you can achieve your ultimate goal of improving conversion rates and building brand awareness.
What is CRO?
Conversion rate optimization (CRO) refers to the practice of improving the number of positive actions that visitors take while on your website. Depending on the type of industry you are involved in, these interactions may include making a purchase, clicking a link, or filling out a contact form.
CRO has become an integral part of digital marketing in recent years as the online marketplace becomes increasingly competitive. On average, a website’s conversion rate is only 2.35%. However, the top 10% of web pages have conversion rates in the double digits.
How to Quantify Your Conversion Rate
Calculating your conversion rate is relatively simple. You must divide the number of conversions by the total amount of traffic to your site. Next, multiply this figure by 100 to obtain a percentage.
If your conversion rate is above the 2.35% average listed above, then you are ahead of the curve. However, there is still plenty of room to increase your conversion rate and generate new growth for your business.
Shifting Focus to the Consumer
When it comes time to improve conversion rates, many businesses seek out “best practices.” These are generalized guidelines for accomplishing a specific goal, such as improving CRO. While some of these recommendations may be right for your company, you should not blindly apply all of them.
For instance, many online CRO resources recommend creating a sense of urgency to improve sales. This may include an ad that features copy like “25% off, this week only.” While that tactic may work in some markets, it is not a one-size-fits-all solution. It is particularly ineffective for businesses in the service industry that provide essential repairs or installations.
Instead, you should take the time to learn about your audience and their needs. If you develop a thorough understanding of the people that you are targeting, then you can tailor your CRO approach to effectively draw them into your sales funnel.
Consumers are incredibly responsive to this tactic. Once you have defined your audience and their needs, you can decide which best practices will be right for your industry. This may mean taking actions like simplifying your contact form or creating a bold CTA button.
Do I Need a Conversion Rate Optimization Agency?
Many businesses can benefit from a partnership with a dedicated conversion rate optimization agency. There are quite a few benefits, especially if you have been spinning your wheels and making little progress on your own.
Some of the advantages of working with these firms include:
- Increased sales/conversion rates
- Enhanced SEO rankings
- Lower customer acquisition cost
- A deeper understanding of your audience
A conversion rate optimization agency can give your efforts a fresh perspective. They will be able to take an honest look at your current practices and find room for improvement. If you want to get the most out of your CRO efforts, consider partnering with one of these agencies. It might be just what your company needs to achieve new growth.