What is Conversion Rate Optimisation?
What we mean when we talk about a conversion is when a visitor to your website takes an action that you want them to take. This could be as simple as applying for a job, seeking more information via contact us form, downloading an app, making a reservation, making a purchase or something else entirely.
The process of testing and changing the structure of the site for the most effective and efficient structure is called, Conversion Rate Optimisation or CRO.
The end goal of CRO is to use data via testing to identify the most optimal customer experience that helps the brand generate an ROI.
CRO was made famous when Obama used the methodology to help him raise $60 Million in campaign funding.
“In internet marketing, conversion optimisation, or conversion rate optimisation (CRO) is a system for increasing the percentage of visitors to a website that convert into customers, or more generally, take any desired action on a webpage or app.”
The evolving customer
Customer attention has become scarce commodity in today’s attention economy.
In a recent Microsoft research, published 2015, it found the average consumer visiting a website has an attention span of 8 seconds.
This means, brands have 8 seconds to capture someone’s attention when they arrive on their website.
With the proliferation of digital touch points, today’s customer journey has become far more fragmented than ever. This has led to more data about customers, yet less insight into their behaviour. Most companies face challenges not only understanding their customers, but acting on that understanding to deliver optimised experiences across their digital touch points.
Figuring out the right experiences to deliver customers can make the difference between hitting targets or not. Whether they’re coming to your site to make a purchase, sign-up for your service, test out your software, or read an article, you have a very short window in which to deliver the experience they want.
This is why CRO will become one of the most important conversations for marketers.
Customer experience design
Over the last decade many marketers are realising the importance of customer experience design. A recent Gartner research, found that 89% of marketers expect ‘Customer Experience’ to be the new competitive frontier for their brand.
The greatest challenge all marketers face is their the lack of data or the overabundance of data. No matter what situation you sit, both extremes create a moment of paralysis required to make an effective strategy.
Today, designing customer experience is an incremental process; one that should be informed by agile data and design. Marketers will need to restructure teams and agency to mobilise agile insights and implement these into actionable outcomes that deliver a positive return on investment.
The changing focus from paid media to Owned media
In January Facebook announced a record 52% year on year revenue growth. Google followed with similar results. What this means for marketers is an increase in cost to acquire customers via ‘traditional’ digital media.
It is our prediction that over the next year years, marketers will start to balance their marketing dollars away from ‘bought media’ to ‘owned media’ spends. Marketers will begin to see the importance of optimising their assets to help convert the traffic they are driving via their media spend.
This shift will see the increase in user experience, data and optimisation demand within the market.
FOR EVERY $92 SPENT ON ACQUIRING CUSTOMERS, ONLY $1 IS SPENT CONVERTING VISITORS INTO CUSTOMERS.
sources: IBM TeaLeaf 2012
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