Without a doubt, Conversion Rate Optimization (CRO) is an area of keen interest among online store owners and managers. Even more so, according to the study, only 22% of companies are satisfied with an achievable conversion rate (source: Transaction). However, is investing in analytical CRO activities a good idea? However, can it be better to invest in, for example, an increase in the budget for generating traffic to the online store?
How much does a poor conversion rate cost?
It will not be a revealing statement that the conversion rate directly affects the amount of revenue in e-commerce. Nevertheless, its low value also generates image losses.
Available research indicates that 88% of Internet users will not return to an online store if they encounter its poor usability during the first visit (source: Amazon Web Services), and 44% will tell their bad online experience to their friends (source: Neil Patel). In addition, their assessment of the credibility of a given business is 75% based on the aesthetics of the interface (source: British Computer Society).
It is also a big mistake to ignore the role of conversion factor in getting traffic to an e-commerce site. Using the conversion growth calculator, you can track how CRO activities will affect revenue growth, without having to constantly increase marketing budgets.
Despite the popularity of the topic of conversion rate optimization, 68% of organizations do not use CRO strategies in their activities (source: CapSumo). This is an opportunity to build a real competitive advantage.
How much does a good conversion rate cost?
Without a doubt, carrying out activities conversion optimization requires financial outlay. Regardless of whether the CRO process is carried out inside the organization or with the help of external consultants.
Based on data from the US, the average spend on tools used in conversion optimization is $2,000 per month (source: Forbes). Online stores with the highest conversion rate allocate 5% of their marketing budget to activities related to conversion optimization (source: User Conversion).
Benefits of Conversion Optimization
There is no shortage of examples of online stores on the market that have achieved significant results thanks to conversion optimization. However, CRO activities are not reserved exclusively for online stores:
- Antivirus maker McAfee has reduced the number of call center contacts by 90% by redesigning the interface of its website (source: Pixeline).
- The American weekly Time, thanks to the CRO process, implemented the so-called infinity scroll, which resulted in a 15% drop in the bounce rate (source: Poynter).
- The Spanish branch of ING Bank has also significantly reduced the number of calls to the call center thanks to optimization activities (source: UserZooom).
In the projects carried out by IDEACTO, we also note interesting results of CRO activities. Thanks to the optimization of the purchasing process, in the German start-up Vehiculum, there was an increase in the number of leads and the return of users by more than 200%. On the other hand, the comprehensive redesign of Nest Bank's information service brought an increase in the conversion rate by almost 50%.
Research indicates that the return on investment (ROI) made to optimize conversions reaches an average of 223% (source: Outgrow).
