08 Apr5 Reasons To Look At Conversion Rate Optimization

In the current economic climate, your website’s conversion rate is more important than ever.

Here are five reasons why conversion rate optimization should be your top priority.

Reason 1: The obvious one—you get more customers, free

The obvious reason to improve your conversion rate is because you want more customers without having to spend a penny more on advertising. But there are other, even better, reasons…

Reason 2: The “slight edge” phenomenon

In many competitions, “the winner takes all” (or at least “the winner takes most”). This is particularly true of internet marketing.

This has an important implication: if you want to be twice as profitable as your competitors, you don’t have to be twice as good as them. You just have to be slightly better than them. This phenomenon is sometimes called the slight edge.

In particular, you need to have a higher profit-per-visitor than they do. Small increases to your profit-per-visitor can have enormous knock-on effects to your business’s profitability and success.

A word of warning: this is no reason for complacency. Once you have the slight edge over your competitors, you need to make sure you stay ahead.

Reason 3: Conversion rate optimization makes financial sense—because your profit is surprisingly sensitive to your conversion rate

An increase in conversion rate of just 50% can result in a 500% increase in your profits.

That’s because the profit from the additional conversions goes straight onto your bottom line. In fact, a 10% change in conversion rate can mean the difference between making a profit and making a loss.

Reason 4: Conversion rate optimization makes your business more robust

When your conversion rate increases, suddenly you can afford to advertise in other media (online and offline)…which makes your company much more robust.

This can create a “virtuous circle”* of benefits for your company, and a vicious circle for your competitors.

* by the way, a virtuous circle is a “vicious circle in a good way”.

Reason 5: The first-mover advantage

Here’s a final reason why you should be taking action now to improve your conversion rate: because if your competitors aren’t doing it already, they will be soon. And there’s an enormous advantage to being in the lead rather than lagging behind. Once you’re ahead, you gain money; if you’re always playing catch-up, you’re losing money.

Does your business depend on “free traffic” or “SEO”?

If so, here’s a special note for you:

If your web business depends on “free traffic” from Google or other search engines, here are the benefits you’ll get from improving your conversion rate:

• The obvious benefit: You can generate more money “out of thin air” from your existing rankings.
• Your customers will like you more, so there’s more chance of them staying with you for longer.
• Your increased conversion rate will mean you can profitably advertise in different media—such as PPC, affiliate marketing or offline—which means your business will be much more stable. You’ll no longer be “hooked” on free traffic, and no longer at the whim of a Google algorithm change.
• If you do it right, increasing your conversion rate will make your website more appealing to visitors, so other sites are more likely to link to it.

Republished from Conversion Rate Experts