Conversion rate optimization (CRO) has been on the rise ever since web-based businesses discovered the data-driven approach to decision-making. That said, most enterprises have primarily focused on user acquisition (UA) to drive more traffic hoping that quantity will, at some point, transform into quality. Whereas the lion’s share of marketing funds goes to UA, even a 5–10 percent increase in CRO spend may result in 15–20 percent revenue growth. A tempting idea to validate, isn’t it?
Why focus on conversion, and what is CRO in a nutshell? It’s a holistic methodology that not only caters to straightforward applications such as boosting CR, but also puts the entire business into perspective. After the funnels and user paths have been up and running for a long while, insiders may develop a blurred vision of the current state of things and future steps. All too often, stakeholders act on unverified conjectures as they seem the most viable at a given moment. It takes a cold-eyed review to evaluate a site. Who can help you with that?
Businesses whose traffic conversion keeps lingering at the same rate or drops lower for no obvious reason will greatly benefit from contracting professional CRO services. CRO will help you eliminate guesswork and get deeper insights into the sales process based on actionable data. Conversion experts will audit your website, detect bottlenecks in the customer journey and initiate a series of experiments to increase conversion rates. Tests may cover a variety of components — copy, CTAs, web elements, forms, etc. The best performing variants will be put into practice optimizing micro and macro conversions on your website.
Who needs a conversion optimization agency? The simple answer is anyone who sells products or services only. CRO is an industry-agnostic technique that helps verify hypotheses and yield increased ROIs in the mid-term perspective. However, in some cases it may appear untimely or unpractical to hire a CRO agency. Let’s look into a few scenarios when CRO implementation is not exactly a good idea.
#1 Low traffic
Apparently, your websites needs a solid base of visitors so you can push them down the funnel. Before your MAU (monthly active users) reaches at least 1K visitors, you’ll be better off focusing on UA. Revisit your content strategy to incite organic growth, pony up for relevant ads and do customer research.
#2 No analytics setup in place
The first thing you do prior to tapping into CRO is deploy and configure analytics and start tracking events. Invest in this implementation, come up with the first conclusions on whatever traffic you have, and jot down the initial specs and goals. At an early stage, your website may not be a master sample for sessions, yet every user behavior pattern is as good as gold. Check out our review of session-based and user-based analytics solutions for your reference.
#3 No buy-in from the stakeholders
CRO may be harsh to insiders assessing the marketing pros and cons. Conversion optimization is an impartial approach that only trusts verified data and discards authority as a decision-making factor. The agency will recommend A/B testing and its findings may prove in-house expert opinions wrong — causing a known level of friction and discord. Unless your team and C-level suite can reach ‘onshore’ consensus as regards CRO, there’s no use taking the voyage.
#4 Unique or ‘rocket science’ business
Bringing third-party advisers into the picture has to be a well-weighed initiative. Some businesses operate in vertical markets that imply an increasingly steep learning curve. Other enterprises may tap into a specific niche that remains an unfathomable mystery to outsiders. Can you explain the basics of your business to a contractor within one month? If not, it’s probably best you stick to your current resources and set an appropriate marketing strategy. Nurturing in-house CRO talent is also a way to go. That is, if you can afford it and if all key stakeholders are supportive of the approach.
Are you on the verge of a CRO project and need to dispel a few doubts? Tell us if any of these contraindications ring a bell. There is no universal remedy for the multitude of web-enabled businesses, yet there is always a custom solution just a few questions away. Ready to ask? Let a conversion rate optimization agency step in.
Originally published at insightwhale.com on January 7, 2019.