In today’s uncertain economy, maintaining a high conversion rate on your website has taken on a far greater importance. Below are the top 5 reasons why you should focus on this essential web marketing tactic.
- Increase Traffic
- Take Advantage of the Slight Edge Anomaly
- It’s Financially Beneficial
- It Builds a More Robust Business
- Make the First Move
1. Increase Traffic
This is easily the most obvious of reasons for working on your conversion rate optimization. More customers are always a good thing and you don’t have to spend extra cash on advertising to get them. However, this isn’t the only reason, nor is it the best.
2. Take Advantage of the Slight Edge Anomaly
In nearly any competitive activity, the winner is the one who finishes with the most. Internet marketing is about as competitive as anything can get, so the rule carries an important meaning: Making double the profit compared to your competition doesn’t require you to be twice as effective. You only need to do a little bit better. Online marketers are calling this the ‘slight edge’.
The most important aspect of being more successful than the competition is having a greater profit per visitor than they do. Even minor boosts in your profit per visitor rate will significantly impact the success and profitability of your online business.
Consider this word of friendly advice: Don’t allow yourself to become complacent. After you have achieved that slight edge, it is essential to make sure you stay on top.
3. It’s Financially Beneficial
Obviously, your ability to turn a profit on your site relies heavily upon your conversion rate. Therefore, conversion rate optimization makes financial sense. You can see in the following diagram that even a small improvement in your conversion rate, 50 percent for example, could have a huge impact on a business’ profits.
A conversion rate jump of merely 50 percent can increase your profits by as much as 500 percent. This is because the money you make from these extra conversions is added to your bottom line. Even a conversion change of 10 percent can be the defining factor in whether you get a profit or a deficit.
4. It Builds a More Robust Business
With effective conversion rate optimization, you gain the funds to purchase advertising through other forms of media both online and off. This helps to beef up your business. It can also help to create what is known as a ‘virtuous circle’, which is like a positive vicious circle, for your business.
5. Make the First Move
Here is the last and potentially most profitable reason for focusing on conversion rate optimization: If the competition hasn’t done it already, they will be starting soon. There is a vast potential for profit when you’re able to get the jump on new trends and products rather than being left struggling in an already saturated market. Being ahead of the game is what makes you money. Constantly trying to catch up to those who got there first will lose money.
Is search engine traffic an essential part of your business model? If it is, here’s a message just for you:
If your site’s profitability is reliant upon traffic from free search engines like Google and others, here are a few of the benefits you will see from rigorous conversion rate optimization:
The most obvious benefit is being able to basically make greater amounts of money with only your current rankings.
Your website will be more valuable to your customer base, so they are more likely to stick with you for a longer time.
Good conversion rate optimization allows you to profit from advertizing in other media forms such as affiliate marketing, pay per click or even television and print formats. This means a more stable business and fuller pockets for you. You won’t have to rely solely on free traffic or struggle with Google’s fickle changes in algorithm.
If done correctly, conversion rate optimization makes visitors perceive your site as being more valuable. This makes it more likely that other sites will link to yours.
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