Conversion rate optimization, also known as CRO is often misunderstood with SEO (search engine optimization) however, they are they two completely different services that they generate radically different ROI. The bottom line is that CRO is essentially optimizing the main elements of your site so that they are created and executed with one goal: maximizing web page conversions.
Since the majority of websites weren’t designed for maximal conversions, and they were never optimized at the time of launch, a typical site can see an improvement by 50% or more in total conversion rates. Some of the biggest multinational tech firms such as igpanel have hired external companies to optimize conversion rates and have reported growth of over 100 percent Imagine the potential benefits for your site.
We’ll return to our original question how do CRO services compare in terms of the ROI of SEO, SMM, or PPC? In fact, to say it simply: It’s not even a contest since the different Internet Marketing options will only offer a tiny fraction of the returns generated by conversion rate optimization. Here’s the exact reason CRO beats SEO, SMM, and PPC in terms of ROI:
Conversion Rate Optimization Lowers marketing costs:One way or another, PPC, SEO, and SMM services all will increase the amount you spend on marketing, which can reduce the ROI. CRO is, however can actually increase your conversion rate because it eliminates the keywords that are not converting from your paid traffic streams. This CRO method will cut down on marketing expenses, and lower traffic levels, and maintain conversions. If you can apply those savings over the course of a calendar year just this one step could yield a return of over 100 percent, depending on the size of your PPC budget.
CRO will be 100 percent conversion-focused: SMM, SEO and PPC experts could promise that they will increase your search engine rankings or traffic for certain keywords. But how much of that traffic is actually generating sales, which is the most important thing to know and the only thing they cannot assure you? The experts in conversion rate optimisation however, are totally determined to increase sales online and/or qualified leads , therefore their results are clear and simple to understand.
Utilizing heat mapping analysis and tools for analyzing traffic, such as Clicktale as well as the Google Analytics CRO professionals find conversion issues and tackle the most difficult issues first, in order to maximize the return on investment. To verify the results, they use split-testing tools such as VWO or Optimizely to ensure that you are able to see the extent to which their services have benefited your sales online. However, you should try to calculate the true ROI of SEO or SMM in which only a small percentage of the extra visitors these tools provide turn into actual customers.
Conversion Rate Optimization Results are carried forward for years If you use PPC your sales will cease when the cost for advertising stops. Even though SEO or SMM are definitely superior when it comes to delivering at least a small amount of ROI after the initial investment has been made and your traffic begins to wane within 30 days of completing the investment you made in SEO as well as SMM. With conversion rate optimization and other changes to increase conversion rates will continue to bring in more sales throughout the lifetime of your site.
In reducing marketing expenses as well as increasing conversion rates and offering services to boost online sales for years after optimization process is finished CRO experts can beat SEO, SMM, and PPC experts by delivering a higher ROI.
Let’s look at a quick example to understand the differences in ROI:
Let’s say our website sells one item for $200 , and achieving an 1.5 per cent per-sales conversion. At present, they depend on PPC to generate all their traffic. They’re currently paying around $2 per keyword and have an annual spending budget of 10,000. If we look at the numbers, the website is producing:
5,000 visitors per month ($10,000/$2 per click)
50 sales per month (5,000 visitors X 1.5% c/r)
15,000 dollars in sales (100 sales x $200/sale)
At present, the site is earning an average of $5,000 per month, which is more than their marketing expenses, which is a 50 percent (for each $10k that the site invests in ppc, it earns 15k from sales). However, the website has barely any money as 66% of the costs are being absorbed by marketing.
Imagine that the website owner has another $10,000 in their pocket and they could choose to either opt for the optimization of their conversion rate or more PPC.
The first thing an CRO expert will do is examine your site’s traffic analysis and identify, then eliminatethe keywords that are not converting. If we take a 20% decrease in the number of keywords , with no loss in conversions means that you will only have to spend $8,000 a month on PPC to achieve the same amount of sales as $15,000.
Let’s say it is the case that your CRO expert makes adjustments to your website’s layout and copywriting, which result in a modest 20 percent increase in the c/r , which then increases to 1.8 percent. So instead of making 75 sales per month, you’ll producing 90. But , unlike PPC where the additional sales will vanish when the money is gone the conversion rate optimization continues to produce an additional 15 sales each month throughout the year.
If we put $10,000 in PPC We’ll earn an additional $15,000 in revenues but not more after the funds run out. If we put that same amount into optimization of conversion rates We can will see:
15 Sales Every Month x 12 months + 180 more sales
Marketing Costs Reduction by 20 percent, which is equivalent to savings of $24,000 ($2,000 per month x 12 Months)
As for the number of new conversions, CRO generates more than twice the ROI and total revenues of PPC. However, when you factor in the savings in marketing of $24,000 per year this means that the ROI of CRO is four times the PPC ROI ($36,000 and $24,000 = $60,000 against. only $15,000 for PPC).
Of course , our study is not representative of all industries or specific results you will expect with CRO’s services. We only predicted the savings of 20% on PPC costs as well as an improvement of 20% in conversion rates overall. However, on average, CRO experts cut down on PPC costs by as much as 40% and increase conversion rates overall by 50 percent or more.
It is a fact that conversion rate optimization surpasses SEO, PPC, and SMM off with regard to ROI. But, CRO projects could be a lengthy process that can take 8 weeks or more to finish and websites require 5,000 unique visitors per month or more in order to justify the cost and provide the highest return on investment.