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Traffic and Conversion Rate Optimization

1) The document discusses how new technologies are encouraging businesses to take a fresh look at digital marketing budgets, with a focus on traffic & conversion rate optimization (CRO). 2) It provides an example comparing traditional digital marketing alone versus digital marketing combined with CRO, showing how CRO can increase conversion rates by 19% and decrease the cost per conversion by 16%. 3) Over time, as more data is collected through CRO, businesses will learn more about customer journeys, which can further increase conversion rates and decrease the cost per conversion.

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134 views6 pages

Traffic and Conversion Rate Optimization

1) The document discusses how new technologies are encouraging businesses to take a fresh look at digital marketing budgets, with a focus on traffic & conversion rate optimization (CRO). 2) It provides an example comparing traditional digital marketing alone versus digital marketing combined with CRO, showing how CRO can increase conversion rates by 19% and decrease the cost per conversion by 16%. 3) Over time, as more data is collected through CRO, businesses will learn more about customer journeys, which can further increase conversion rates and decrease the cost per conversion.

Uploaded by

D.Worku
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Traffic & Conversion Rate Optimization:

New Technologies Encouraging a Fresh Take on Digital Marketing Budgets


Traffic & Conversion Rate Optimization
If there is one constant in the world of mar- Beyond data collection and website traffic
keting, it’s change. There is always new data, analysis, another task presents itself - one that
technology and information that businesses is being taken on by individuals in sales and
can adopt and learn about - especially when marketing roles at an intrepid rate: conversion
it comes to eCommerce. rate optimization (CRO).

From a marketing stand- Conversion rate optimization can aid your or-
point, many believe that a ganization in:
website should merely be
a point of attraction and • Converting more visitors to customers;
information. Marketers
will do everything in their • Ensuring that these customers are rele-
power to create an appeal- vant to your organization;
ing website, and attempt
to drive traffic to it by us- Generating website traffic and CRO are both
ing tools and methods like Google AdWords, merely half the story. When used in unison,
SEO, generating a ton of content, and building the two tools can be a powerful combination
a plethora of inbound and outbound links. that allows your business to leverage traffic
data and analysis to increase relevant conver-
As a marketer, using this toolkit to drive traffic sions.
to your website has become second nature.
Below, we outline the monetary ways in which
Website traffic is an important aspect of mar- traditional digital marketing tactics can aid
keting, and of course, provides various pieces your business alone, as well as how these tac-
of useful data and benefits including: tics - when used in conjunction with CRO - can
lead your business to success.
• Where traffic has stemmed from;
Have a look at the numbers on the next page.
• The flow/movement of a visitor’s journey;

• Understand bounce rate; and

• Helping to position your business as a re-


source where potential customers can find
answers to industry-related questions.
Scenario 1: Traditional Digital Marketing
Given the parameters below, we provide an Assuming that your website is operating with
evaluation of the benefits and opportunities a 2% conversion rate (of 1,000,000 visitors)
for growth that a traditional digital market- and that you’re working with a $100,000 digital
ing budget may provide your organization. marketing budget. That means an amount of
10,000 of your visitors are converting.
To get started, please assume the following in-
formation: 1,000,000 visitors x 2% conversion rate =
20,000 conversions or customers
• The total budget for digital marketing in
this scenario is $100,000/month. With $100,000 spent on advertising and 20,000
conversions, this means that your business is
• You get 1,000,000 visitors/month to your paying $5 per conversion.
website.
Without taking into account additional vari-
• Your website’s conversion rate is 2% ables like the lifetime value of a product or
customer, calculating the price you pay per
customer can be relatively straightforward.
Scenario 2: Traditional Digital Marketing + CRO
In looking at the following scenario, it is im- This means that rather than having 1,000,000
portant to understand that CRO has been visitors, you now have 900,000 visitors that
incorporated into the existing digital mar- stem from digital marketing efforts.
keting budget - not as a completely separate
entity, but as a tool to complement and capi- 900,000 visitors x 2.38% conversion rate =
talize on traffic generation efforts. 21,420 conversions or customers

Data shows that CRO can provide companies With $100,000 spent on advertising and CRO
with an increase in conversion rate of over services, your company’s price per conversion
19%, which is done through the adoption of is decreased to $4.20. A decrease from $5 per
new technologies designed to add an entirely conversion to $4.20 per conversion represents
new dimension to your website. In addition to a 16% decrease in your company’s cost per
this new dimension, CRO technologies can be conversion.This is after a month.
used across your entire company to personal-
ize user journeys and increase customer satis- CRO can arm your company with the opportu-
faction. nity to increase conversion rate and decrease
its price per conversion rate. While results
Remember: Your website is now operating may vary month to month, with a minimum in-
with a 19% increase in conversion rate (of crease in conversion rate of 19%, growth can
1,000,000 visitors) be anticipated.

A 19% increase in conversion rate on an ex- Take a look at the graphs on the next page
isting 2% means a 0.38 percentage point in- on how your conversion rate can increase
crease. over time, while your price per conversion
can decrease.
You are now only spending $90,000/month
on digital marketing efforts, making room for
$10,000 to employ CRO services.
Understanding the increase & decrease
Why will my conversion rate increase and my
price per conversion decrease over time?
The reasons for that are:

• Amount of data collected and leverage to drive conversion increase;

• Your company will learn more about its customer journey; and

• Bounce rate will decrease, making traffic more valuable and thus increasing conversions.

“Initially, you spend a lot of money trying to get traffic, but you don’t really know how to engage with
visitors. By employing CRO technologies, you gather data about your visitors which you can then use
to create different segments. This will allow you to engage with visitors the right way - using person-
alization. Over time, you will learn what types of offers and engagement work for your customers.
Ultimately this will improve the customer journey. CRO offers more benefits and improves conversion
rates over time as your company gathers data and insights.”

Marcus Grøne (Customer Success Manager)

Simply put, CRO technologies provide an avenue to increase conversion rates and decrease
your company’s price per conversion.

Want to know more about CRO? Check out the Bellmetric blog

Find out about how Bellmetric can help your business with conversion rate optimization here.

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