As I always say about my own business: I'd rather have 10 people come to my website and 9 sign up, than 10,000 people coming to my website and only 8 sign up!
What is the Conversion Rate for a Website?
What is Conversion Rate Optimisation?
What are the Benefits of CRO?
Generally speaking, the cost of operating a website should remain more or less constant regardless of the conversion rate it achieves. So far as traffic is concerned, a website is likely to receive:
- organic traffic (via Google, Bing, etc).
- paid traffic (by way of PPC and / or other forms of paid advertising).
- referred traffic.
- a combination of all of the above.
Traffic that is referred from another website can be free (someone links from their website to yours because they like your content) or it can come at a price (paid advertising on someone else's site that incorrectly comes into your Google analytics as referred traffic, even though it's technically paid traffic).
Traffic generated via paid advertising obviously costs money (because you're paying per click or impression) and getting organic search traffic in any volume requires an over-arching SEO strategy driving it (which naturally costs money too, as you need to hire a SEO Company to get the first page results you require).
So for this example, let's assume that a website selling products online spends $1,000 per month on paid advertising and $1,000 per month on SEO services. And let's further imagine (for easy math) that it averages about 1,000 unique visitors per day. Next, let us assume that the average transaction value for the website is $50. And finally, let's say that it has a conversion rate of 1% (i.e. one out of every 100 visitors buys from the site).
Given the above scenario, the site would average 10 sales per day. And with the average transaction value of $50, it would gross $500 per day or $15,000 per month in sales (on a 30 day month). Now let's see what would happen if the conversion rate of the site gets increased from 1% to 1.5%. When this happens the gross monthly income generated by the website would jump from $15,000 to $22,500 straight away, with the exact same operating cost of $2,000. So that's a $7,500 per month or a $90,000 per year increase in annual turnover - WITHOUT GETTING A SINGLE ADDITIONAL PERSON TO YOUR SITE PER MONTH.
How to Optimise Conversion Rates
Craft Your Copy to Convert
Increase Your Website's Loading Speed
Redesign Your Website
These are but a few ways in which effective CRO can be implemented. As mentioned above, there exist scores of other CRO methods and techniques, each one of which can contribute towards an increase in a website's conversion rate to varying extents. A truly knowledgeable and competent web marketing / SEO professional can help you with effective and scientific CRO too.