Digital marketing management has expanded into a range of techniques and tactics that firms can use to maximize their marketing goals and objectives. While some such as SEO, PPC, and content marketing can be used efficiently, one of the most important meters of success is the conversion rate. This means that any digital marketing activity can have a strong impact so long as it can capture a greater proportion of web traffic and convert them into actual buyers of products and services.
Firms, therefore, give high importance to conversion rate optimization in order to determine their performance in meeting their short and long term financial goals. In this blog, we are going to explore what conversion rate optimization is and what are some of the ways through which businesses can enhance its impact.
What is conversion rate optimization?
Conversion rate optimization (CRO) refers to a systematic approach of raising the percentage of web traffic that is diverted to your website into actual buyers through a combination of techniques and tactics. Businesses that have a higher CRO enjoy greater sales revenue growth and are able to reach break-even much quicker.
You may have come across conversion rate a number of times in marketing literature, and it is not difficult to understand why. Various digital marketing techniques are able to engage with customers, but fall short in turning them into actual buyers. Firms waste away a substantial amount of money on marketing budget in reaching thousands of customers; however, it does not translate into success in terms of financial metrics. By focusing on CRO, firms can ensure it is evaluating its marketing activities from the basis of sales revenue growth.
Benefits of emphasizing CRO
When a business monitors all digital marketing activities and efforts according to the impact it has on its net profit margins, it is able to do more than just cover expenses. Instead, it is able to secure its customer acquisition and retention goals. Through the use of analytics software tools, it can measure how many new customers it has acquired on a period basis, which can inform its short and long-term growth prospects.
This is particularly important in the SaaS market, in which sales cycles are incredibly short and firms can quickly be forced out of the market if they cannot secure long-term customer lifecycles. CRO helps ensure that it has enough customers under its belt to keep the business running and moving forward.
CRO is also tied to increasing the effectiveness of digital marketing techniques, such as PPC and affiliate marketing methods. If this occurs, your business can increase market share by a substantial amount and increase ROI.
Ways of enhancing CRO
Perhaps the easiest method of optimizing your conversion rate is to establish sales funnels in Google Analytics. If they are configured properly, it can provide managers with important details that can explain what marketing opportunities can be taken advantage of and where they are losing traffic.
Firms can also conduct online surveys to gather information as to why their visitors do not buy their products and services. A simple way to do this is to place questionnaires or forms on your website; you will be surprised by the amount of crucial information you can gather.