Optimizing for conversions is a crucial part of not only increasing sales but also increasing the lifetime value of your customers. Any brand selling online should be including conversion rate optimization in their strategy to be on the path to profitable growth.
But what exactly does conversion rate optimization mean and what kind of benefits can it bring to your business? In part one of this six-part video series, Margo Andros, Founder at LTV Approach and Brandon Howell, Website Optimization Service Lead at ROI Revolution reveal the what and why behind conversion optimization and explore how it helps brands like yours understand your customers better.
Optimizing for Conversions to Create Lifetime Value, Part 1: What Is Conversion Optimization?
Do you have an ecommerce site? What do most ecommerce sites or founders of ecommerce sites want? They want scalability, revenue growth, profitability, cost, and efficiency. This is what a lifetime value (LTV) approach does.
Let’s to talk about one of the approaches we use that is often overlooked by founders. We’re so focused on how to make our paid performance grow that we sometimes overlook that other tools can help us be more effective in scaling brand growth.
Today, we figured we would come to all of you with a different topic that is not always discussed in the marketing stack: conversion rate optimization, or CRO. We’re asking ourselves what it is, where it belongs, and what its value is.
If you work with cross-functional teams every day, you know that executives may not be as technically knowledgeable as the other parts of the team on what CRO is and the value it can bring to their ecommerce site so they can make a decision about this type of investment. How can conversion optimization be valuable to brands in their path to growth?
Starting from the top, what is CRO? It stands for conversion rate optimization or even just conversion optimization. In general, it’s any activity geared toward increasing the likelihood that an individual will take an action or convert. In the digital marketing realm, when we talk about conversion rate optimization, we’re talking about website user journey modifications, or changes made to your website that will increase the likelihood of the conversion action.
A conversion can mean a lot of different things to different people. A micro conversion would be getting more people to sign up for your email, click the add-to-cart button, or add additional products to their cart.
Conversion optimization is 100% a path to understanding your customer better. The crux of conversion rate optimization at the end of the day is understanding the customer better and creating the right user journey for them.
Sometimes we don’t know how to make those actionable decisions without that understanding of the customer. We always believe the LTV approach is extremely important when you’re growing your ecommerce website.
Interested in learning more about what conversion rate optimization could do for your brand’s bottom line? Contact our team of CRO experts today!