Conversion Rate Optimization For Small Businesses (9 Best Practices )
Last updated on February 7th, 2020 at 05:25 am
As Conversion Rate Optimization (CRO) depends on the challenges that visitors face, it has been said that there is no universal improvement method that can be applied at various sites.
However, Invesp an authority in conversion rate optimization introduced a method to make it possible. I’ll be sharing in this post some of their techniques.
Conversion Rate Optimization for small businesses is quite relative and can be extremely exhausting. However, there are best practices that remain constants, they will help a long way to optimize really fast.
9 Best Practices For Conversion Rate Optimization
Conversion rate optimization is complicated and difficult to fix, especially for small businesses Quite frankly.
There are several reasons why conversion rate optimization for small business seems like that.
Reading this article will change the view of planning and implementation of conversion optimization and accelerate CRO’s efforts. CROs can be best achieved through thorough planning.
As always said, conversion rate optimization for small businesses begins with understanding visitors we are seeking to convert, and also by measuring customer reactions and verifying the hypothesis.
This CRO process requires time, resources, and budget.
By reading this and understanding the cost, return calculation and technical requirements, it will be possible to improve the smooth conversion rate for beginners.
Reading this article will accelerate your business and conversion.
Conversions are not optimized overnight. This is a fact.
Efforts, dedication, and patience are more important than ever in order to raise the conversions of a website.
Some marketers are disinclining the process of optimizing conversion rates. I read a case study of a CRO program that ked conversion on auto-pilot, increasing profit by over 100%, and I tried to actually do the same for the client I was working with.
In the initiative that led me to dream of tremendous success, all passion gradually diminished due to the inability to obtain the result I expected.
My point is this: Incorrect expectations create disappointment and waste investment.
On the other hand, a reasonable goal makes enthusiasm, time, and resources meaningful.
Over the few years, we have learned through the partnership with many companies and organizations that two factors are necessary for good forecasting.
- A good plan will raise the 30% conversion at a minimum for at least a year.
- A solid plan also brings about by-products other than rising conversions. Learning and experiences will give good results in various channels. This will make the final effect 10 times.
Calculate the return of the plan
A 30% increase in conversions per year is a reasonable forecast unless it is a site that already has a conversion rate of more than 20%.
There are two ways to calculate the impact of conversion optimization.
- Can you guess how much if you convert 30% conversion rise into dollars, how much will it have on your income? How will the profit rise? Will the revenue be a sound return to investment?
- After determining the amount invested in the CRO program, calculate the following two figures based on the current annual income and revenue – Increase in income required for profit and loss branches and reference value exceeding investment-effectiveness in programs of similar intent
The following are examples of these:
Let’s suppose that your company has an online income of $ 5 million. The gross profit margin is 35%, and in the marketing plan, we expect 300% of the return on investment. And the total budget for the CRO project is $ 150,000.
- Approach 1: Let’s assume that income will rise 30% first. This means an increase in revenue of $ 1.5 million. Since the gross profit margin is 35%, it is estimated that the revenue of $ 1.5 million × 35% = $ 525,000 will rise as a whole.
In other words, an investment of $ 150,000 will produce a return of $ 525,000.
- Approach 2: When investing a budget of $ 150,000, you have to at least increase the income by $ 428,000 (150,000 / 35%).
Increase in income required for profit and loss branches: $ 428,000 / 5 million dollar = 8.6%
Above expected expected return on investment: standard value: $ 150,000 × 3 = $ 450,000
The increase in revenue needed to generate 450,000 dollars is about 1.28 million dollars (= 450,000 dollars / 35%) The
revenue increase required to exceed the expected investment benefit is 128 million dollars / 500 Ten thousand dollars = 26%.
You can also read: A beginners guide to lead generation for small businesses
Well, let’s summarize the numbers that we have come up with so far.
- To recover the investment amount, it is necessary to increase revenue by at least 8.5% (Approach 2)
- In order to obtain the expected investment-related effect, it is necessary to increase revenue by 26% (Approach 2)
- If it is expected to increase revenues by 30%, it will exceed the expected return on investment in the marketing plan. (Approach 1)
Estimate the total investment cost
Many companies do not pay attention to the detailed information necessary to make the CRO successful and create an investment plan without including the indicators to watch.
The investment in the CRO must include expenses for the marketing and development team as well as the fee for using the test software.
In order to eliminate the leakage, remember to include the following items:
- Development costs
- Design cost
- A / B test tool usage fee
- The operational cost of CRO program
Proper resource allocation
70% CRO program fails due to resource allocation of the project owner. As we worked with companies in various industries all over the world for some years, I felt this was the biggest challenge.
Indeed, there are surprisingly many cases that desperately wish for success but also allocate inappropriate resources. A plan that secures infinite resources that can realize all possible tests is not the correct answer.
The key to success is to properly adjust the budget.
Before starting the CRO program, it would be better to reserve one or two split tests * in the month. The results obtained here will change the priority of other projects. This is the only way to improve the conversion rate.
Understand system requirements
In the course of the conversion rate optimization program, it is necessary to be able to deal with when a technical event occurs.
It is better to carve out that bugs also kill conversions. Just eliminating it will increase the chances of a conversion rate rise.
Consider this scenario. A new CRO program began, resource allocation and preparation for testing are completed. The first plan was sent to the team, but it was content that can not be implemented.
Why did such a thing happen? Do not forget that the technical limit varies depending on the platform. If you confirmed the technical limitations, you may end up with an impossible plan, or it may take a tremendous amount of time to implement.
By understanding the limits and problems of our platform in advance, it is possible to avoid heartburn and headache later on.
Develop a roadmap for conversion improvement
Having a thought test and hoping to improve the conversion rate is undoubtedly a waste of time and effort.
Although it is not the majority, it is true that some percentage of companies are testing at random. In a month we will test the homepage, on the product page in the following month and on the category page in the third month. This is very important for conversion rate optimization for small businesses.
Successful programs earnest understand visitors and spend time in finding out which pages the visitor is leaving, pages that are likely to improve, and pages that should remain intact. Most companies do not understand or ignore this fact.
Prioritizing the pages to be improved and developing the CRO roadmap is the foundation of the foundation.
The roadmap is 6 months, it is better to do something like 8 to 15 tests.
You can also read: Integrated digital marketing using content marketing
Retest with winning pattern and original
We have carried out various A / B tests, multivariate tests, and repeated tests if necessary. What you can say from this experience is that there are several ways to use test results.
It is a good method to validate it by hitting the design that won the A / B test and the current design, it is effective and worth doing. It gives me confidence that I am not an outlier.
Analyze the learning in the test
Conversion optimization is more than just a split test. After the test, we will conduct a detailed analysis and answer the following questions.
- Why did the losing pattern fail to improve the conversion rate?
- What kind of learning does the prospective customer have by evaluating the losing pattern?
- What kind of learning do you have about customers by evaluating the winning pattern?
- As a result of this test, was it possible to ask new questions to visitors?
- How can we develop similar hypotheses on different channels and platforms?
It is also fundamental to look for logical answers to these questions. This gives you insight and data to exceed simple conversion optimization.
Plan a new test
We often get the question “How many tests should we do on one particular page?” Our answer is to do as many tests as necessary to solve the top problem hindering conversions. Recall that the correct approach includes the following points.
- Consider conversion framework elements and analyze pages
- Identify the biggest problem on that page
- Prioritize problems
- Create a hypothesis on how to solve each problem
- Perform A / B test, multivariate test and verify the hypothesis
According to this approach, the A / B test is another step to improve conversion on the web page.
Conversion rate optimization is a process. It does not switch on / off like an electric switch.
Conversion optimization is a process. It is a long-term effort, dedication, and detailed analysis are required.
Failure is waiting for those who do conversion optimization for a limited period and who expect great improvement from the beginning.
Once you have a solid plan and you’re committed to the process, awesome remuneration awaits you.