CONVERSION RATE OPTIMIZATION
Conversion Optimization or Conversion Rate Optimization (CRO) means a big thing in Internet Marketing.
DEPENDING ON DIFFERENT BUSINESSES, CONVERSION COULD MEAN A BUSINESS GOAL OR ACTION TAKEN BY WEBSITE TRAFFIC. IT CAN BE EMAIL NEWSLETTER SIGN UP, SOCIAL MEDIA LIKES, ENQUIRY FORMS, USER EXPERIENCE FEEDBACK OR EVEN SIMPLE ACTION SUCH AS DOWNLOADING BROCHURE.
Very often companies are willing to spend big bucks on marketing and hoping that in return they could gain more customers. Most of the time, they are spending more but getting negative ROI and paying ridiculously high for each cost per customer acquired.
LETS TAKE A SIMPLE EXAMPLE OF CRO
Rudy runs an inbound tour agency and bought the keyword “Langkawi holiday package” which cost him RM2.66 per click.
By the end of the month, he ends up with lets say 126 clicks, which literally means 126 paid traffic to the website. Out of these 126 traffic, there is only 2 person that purchase and made the sales. So the conversion rate would be 2/126 * 100, which is 1.58%.
And now, let’s say the total of two sales are RM350, but Rudy is paying RM335 for the campaign that last entire month. Which means the cost per customer acquisition now is RM335 / 2, which is RM167.5.
In most cases, buying commercial keywords are very expensive. What about if the keyword cost about RM4?
If you still follow this, let us show you on how Rudy can scale up this game.
Currently Rudy has about 1.58% conversion rate from his campaign. What if he managed to boost the conversion rate to 4%, This would then means out of 126 traffic he would gain 5 customers.
Now, the cost per customer acquisition will be RM67. Brilliant!
WHY YOUR BUSINESS NEEDS CRO ?
Now that you have an idea about what is CRO, but how does it help your business especially in a multi channel marketing strategy?
The fact that most local companies are focusing on generating more traffics and brand awareness through SEO campaigns, Email Marketing, Social Media Campaigns or even Pay per click, have not tested on why aren’t the sales increase with the same amount of traffic? Yes they could upscale the traffic acquisition but never really dive into what makes them convert even better.
A good example of CRO hypothesis is looking into how to improve abandoned shopping cart, reduce traffic exit page before sales page, or improve the number of visits before each sales occurred.
In fact, CRO should be the priority in digital marketing. It doesn’t matter what channels your inbound marketers are focusing, its the root of buying behavior and correlates well with all marketing channels. If you get this idea, CRO is like training your sales guy to convert more sales, rather than hiring more sales guy so that overall sales improve.
WHY CHOOSE ISAAC FOUNDER ?
What makes IsaacFounder different from other digital agency is that we are “data” driven with our marketing decision, taking online behavior as our key indicator metrics , constructing hypothesis and validation that would impact the business goal.