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Conversion rate optimization is crucial to any business driving traffic, leads, and sales online. But what is it really worth to you and your business?
First the basic definition of conversion rate optimization is the method of creating an experience for a website or landing page visitor with the goal of increasing the percentage of visitors that convert into a desired action.
Getting more people to do exactly what you want them to do is the name of the game and it really only boils down to two elements, traffic and getting more of that traffic to take action.
But again what is it worth to you.
Let’s look at a few examples at the true value of conversion rate optimization.
A company was driving about 600 leads per day to their business, on average 5% of those leads made a purchase with an average initial customer value of just shy of $300 when you factor in upsells.
Which means they were making $9000 in revenue from those 600 leads.
One small change (through testing) to their landing page yielded an increase in daily leads of 30%.
So now they were averaging about 780 leads per day.
Still about 5% of those leads made a purchase, leaving the company with an increase in daily revenue of about $2700.
All from one simple change to one element of their process. This of course is just a simple example. Let’s take a look at one more example.
A lead generation company is spending about $35,000,000 per year on online traffic (a big number I know). Their goal was to get 1% of that traffic to convert into leads. They had a BIG ticket program and their lead value was extremely high. The problem is that they aren’t doing any optimization. They would just throw up ads and hope they got the results that made sense.
Let’s say they were paying $1 per click on that traffic just for sake of example. That would mean they were getting roughly 2.9 million clicks per month.
Which means at 1% means 29,000 leads per month on that spend.
But what would happen if we increased that just 1.5% conversion rate? That is roughly 43,500 leads per month. An increase of 14,500 leads per month.
Not a crazy increase in conversion but considering each lead is worth thousands of dollars to them, that means an increase in MILLIONS in revenue.
So I bring up the question again… what is conversion rate optimization worth to you?
Break down the numbers for yourself. Be sure to pay close attention to your customer value and your earnings per click.
If you increased the conversion rate on each step of your funnel and increased your customer value each by 10% (a pretty conservative number). How much more revenue would that mean for your company?
It doesn’t stop there. Through strategic conversion rate optimization you can also decrease the customer and lead acquisition costs as well, making you more profit.
Now go out there and start optimizing. If you want to truly see the value of conversion rate optimization, we can help. Help you test faster, alleviate bandwidth issues holding you back, and give you a plan of attack. Just contact us with questions.
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The only way to lose is to not do it!