The objective of a conversion rate optimization (CRO) program is simple – to get more value out of your existing audience.
For any business that invests resources in getting people to their website, this should be a critical piece of the strategy. Search engine marketing, social media marketing, email marketing, blogging, SEO, and many other promotional efforts are intended to drive people to the same destination hub – your website.
Because your website is the critical path for customer acquisition, a small increase in conversion rate has great scale, and therefore, great impact.
Unfortunately, I’ve noticed that when it comes to investing time in CRO versus other marketing expenditures, like putting more money into PPC, we tend to lack an objective way to evaluate the decision. This lack of objectivity leads us to justify CRO without a clear or compelling KPI to back it up, and can lead to under-investment.
Let’s solve that problem.
In this post, I’m going to review how digital advertisers evaluate and justify their media budgets, show you a way to similarly calculate your return on CRO, and review some reasons why a CRO program may not always provide you with a positive return.
Ready? Let’s go.