In “The Datacrushers Guide to Conversion Rate Optimization” series, we will be presenting Best Practices as they relate to a specific topic on this subject. In turn, these guides will help ensure the success of your business going forward into 2018.
In the world of eCommerce, the conversion rate (CVR) is a lot like a prized racehorse. In the sense that breeders take great pride in the lineage of a horse more so than its winning streak. In fact, only 22% of companies are satisfied with their conversion rates. This does not mean that the other 78% are happy – rather that they are unaware.
A result of this lack of awareness is that many eCommerce merchants miss the mark when it comes to the subject of conversion rate optimization (CRO). This missed opportunity typically manifests itself in retailers boasting about their “awesome” and “incredible” conversion rates, which typically goes as follows:
Retailer 1: “We achieved a 7.5% CVR through a uniquely refined campaign we ran on Facebook.”
Retailer 2: “Oh yeah, well we achieved a 7.6% CVR because we paid (insert minor celebrity here) to work with us.”
Retailer 1: “&^$^^&)&^^%^& you *&&%(*).”
This strict focus on conversions is extremely misguided because the numbers themselves are meaningless if they don’t translate into a reasonable revenue stream for a business.
Revenue – you know, that thing businesses aim to make in order to keep the lights on? The whole point of running a business is to make money, which means covering your overhead and then some for most eCommerce retailers.
“Wait, I thought a high CVR was akin to a large revenue stream for a business?” You ask keenly.
Well, the truth is that your CVR means nothing if you are just breaking even. It means even less if you are operating at a loss. Naturally, this raises the following question:
“How do I ensure my CVR actually means something for my business? Something that is worth talking about to my friends and affiliates?”
Now we are getting to the point of this guide. To make your CVR mean something for your business, you must optimize it, hence “conversion rate optimization.” In a nutshell, this means that if your CVR stands at 6.4%, it can be raised to a more practical 7.5% by making the right moves, which we will talk about later in this guide.
Now, why do you need CRO?
The general idea is that CRO will help you boost your revenue – but not by squeezing every last cent out of shoppers as if they were a sponge. Unlike squeezing every little last drop of water out of a sponge – rather it’s the sponge absorbing more water then you previously thought possible. If you think of your business as a sponge, then CRO works by drawing water (in this case shoppers) thereby boosting your revenue and setting a benchmark for the income you can make going forward.
Let’s delve into the matter of how CRO works at a fundamental level.
CRO Is More Than an Acronym:
CRO isn’t simply an acronym. Achieving peak CRO is not just about throwing a pretty face and some nice words into an ad online (It helps, but that’s not the point here). Rather, think of CRO as a Phalanx of sorts, incorporating a specific set of methods that aim to drive up the number of visitors to your site, strongly compelling them to complete your sales funnel, thus converting (purchasing) and increasing site-wide revenue.
The whole point of this movie was to detail how the Spartans increased their CVR to 300% by getting Xerxes to complete their sales funnel, right?
Revisionist history and Gerard Butler’s abs aside, CRO really does work to drive up conversions through a series of wise moves geared towards improving different aspects of the shopper and guest (visitor) experience.
Now that the fundamentals have been covered, let’s look at CRO by the numbers.
CRO – A Requirement in Todays eCommerce Arena:
Let’s look at some important numbers as they relate to CRO and the retail industries interest in this field.
Consider the following; 53% of CRO practitioners said that there’s no recorded budget for CRO in their companies. This doesn’t mean that they could spend freely in their effort to increase conversions. It means that there was no leeway to invest in their CRO efforts.
Now compare this to the 73% of companies that improved their CVR after budgeting specifically for CRO. What does this signify?
It signifies that those who listen, stand to gain the most in the world of eCommerce.
Especially since 84% of businesses that used a structured approach to CRO have also seen increased conversions. Versus just 64% for businesses that chose an unstructured approach (choosing to play it by ear).
So, does this mean that CRO requires a major investment? Does it mean that CRO requires a major site-wide overhaul?
No and No. It does require a structured approach and a little bit of patience. So, in part II of this series, we will discuss how to get started with CRO.
Founded in 2015, Datacrushers uses Machine Learning and A.I. along with NLP to identify and recover revenue loss, cart abandonment and discover new revenue sources across any site. The revenue discovery platform completes the deep ongoing analysis of eCommerce websites by monitoring the three main focal points of any site: The User, Site, and Product.
Unlike traditional “cart abandonment platforms,” Datacrushers does not require shoppers and customers to be logged-in to conduct both on and offsite campaigns. We use a wide range of data-driven and analytics based conversion tools to target the shopper at the right time with the most accurate and effective campaign to drive the sale.
Datacrushers is platform, language, and currency agnostic and requires only a few lines of code to get started therefore delivering an ultra-fast go-to-market with minimal set-up time and tech intervention.
Based out of Jerusalem, Israel, Datacrushers has clients worldwide including, The US, China, Russia, UK, Germany, and more.