Conversion Rate Optimization (CRO) and Increase Sales aren’t phrases you hear together often enough. However, every business from a startup to an enterprise asks this question at some point: How can we increase sales? Answers such as increasing your outbound marketing, or doing more content marketing, or growing your sales team are some of the usual responses to such a question.
More than likely, any one of those answers would increase sales. The problem is that significant time and/or money is necessary to really move the needle with those choices. But who likes spending money if they don’t have to? This is where Conversion Rate Optimization can come into the picture.
If you’re anything like every online business on the planet, more than likely you’re not converting 100% of your website visitors into customers. Unfortunately, that number is probably somewhere in the 2% range. The good news is, the other 98% are potential customers!
And just like most online businesses out there, you’re ignoring that 98%. Why?! Imagine if you invited 10 guests to a dinner party and only 2 of them showed up. You would want to know why everyone else did not show. Maybe your cooking is bad. Or your invitation wasn’t clear enough. Or worse, a mutual friend was throwing a better dinner party on the same night! You would probably call up a few of your no-show guests the next day to find out why they missed out on your incredible vegan “meat” loaf. It turns out that many of these guests weren’t fans of the menu.
You should be just as interested in knowing why visitors to your website bounce or why trial users of your app never convert. Understanding the “why’ is key in knowing what steps to take to improve your conversion rate. Finding out the “why” is as simple as prompting an exit survey when a visitor is about to leave or surveying your trial users by email after their trial expires.
Once you understand the “why” you’re now in a position to take action. Perhaps your onboarding flow is confusing. Or you’ve been targeting the wrong customer all along. Basically, there are dozens of possibilities and in order to be effective, you must have at least a vague understanding of why your conversion rate isn’t as optimized as it should be.
The true power of Conversion Rate Optimization is the ability to generate more sales from the audience you already have. Back to the dinner party example. Once you know why those 8 guests didn’t show up, you can then make the necessary improvements to guarantee a more successful dinner party next week. Either that or you can always find 8 new friends. 🙂