Turn a moderately successful business into a multi-million dollar powerhouse
CRO or Conversion Rate Optimisation, is one of the best kept secrets in the professional digital marketing world!
There is a high chance you’ve clicked on this out of curiosity; if your guardian Angel is on your shoulder you’ll probably keep reading because, this is where everything finally comes together.
The heading to this page is a pretty wild claim; turn a moderately successful business into a multi-million dollar powerhouse is it just to catch my eye or can CRO actually do that for my business?
The answer is, yes it can!
Conversion rate optimisation in Australia is still very much unknown even on an agency level; I meet digital marketing consultants often that have been doing this for as long as I have and they still don’t completely understand what it is or how it’s done.
The reality is even internationally it’s still very much underutilised, that’s partly because the experts that can do it well keep it to themselves and the ones that are prepared to share charge upwards of ten thousand dollars per a months with six month minimums contract periods to do it for you.
Then on top of that they will also write into your contract a bonus of ten percent to fifty percent of all revenue increases.
Guess what they have waiting lines so long that you can’t even get a meeting with many of these guys; I know because for years I couldn’t even get a meeting and I had my own agency; until finally I was taken under the wing of some of the most successful split testers and multi-variation testers in the world and taught a very scientific approach to this called Kaizen the process of continuous improvement.
Then after that I went and got certified in landing page optimisation, value proposition optimisation and online testing by one of the only PhD’s of optimisation in the world; Dr. Flint McLaughlin.
Why is Conversion Optimisation so valuable that businesses will pay the huge monthly fees and give away large percentages of the increased revenue just to have these experts optimisation their conversion rate?
There is one simple answer:
- Conversion Rate Optimisation can take losing campaigns and turn them into highly profitable campaigns and/or take winning campaigns and turn them into multimillion dollar revenue sources!
What is conversion optimisation then?
Conversion Rate Optimisation or (CRO) is the process of analysing your entire sales funnel starting with the listings of your traffic sources i.e. your PPC ads and moving through the entire sequence of steps your customer goes through then testing pages that are called treatments to boost the conversion rate of your entire process into double digit figures.
Most websites when they come out of the web design agency convert at somewhere between 0.5% and 1.5% it’s pretty rare that a site converts any more highly than that, which means that with the costs of traffic these days it can be very difficult to create a highly profitable website, until we complete a few bouts of split tests and eventually multivariate testing.
Here’s a really brief example of the difference CRO can make to your bottom line:
Control-A (Initial website straight from the web developer)
- Website converts are 1.5%
- Average Sale Value is: $990
- Monthly unique visits: 5000
If the website is getting 5000 visits a month, with a conversion rate of 1.5% to sales; then we need to multiply the monthly visits by the conversion rate to work out how many sales control-A makes per a month.
5000 monthly visits x 1.5% conversion rate = 75 sales per a month
Now to work out the revenue from that we need to multiply the sales by the average sales value.
75 sales x $990 average order value = $74,250 per month
Okay so that’s not a bad monthly revenue right?
Now we don’t know the costs to produce and deliver this product or anything like that, there could be a very low margin or anything like that, however it would be fair to say the business is probably profitable but maybe just after all their costs.
Treatment-2 (Initial test website, running an A/B test of the control A and Treatment-2)
Let’s just say for the sake of this example that we’re immediately with one A/B test able to increase the conversion rate by 200%, which will give us a new conversion rate of 4.5%, the traffic doesn’t change, average order value doesn’t change.
Let’s do the maths:
5000 visits x 4.5% conversion rate = 225 sales per month (that alone is a whooping difference). Now keep in mind that there are no additional baseline costs, this is totally increased revenue.
225 sales x $990 average order value = $222,750 per month
It would probably be fair to say that this business is now very profitable and they can no look at all kinds of marketing initiatives that wouldn’t have been feasible previously.
However let’s say that our business owner didn’t stop there, she wants to take it even further; money is no longer an object to her so she give us a lofty retainer to work on this full time for the next 3 months to do whatever it takes to push this a little bit more.
Treatment-3 (second round of testing, multivariate testing)
This time around we’re not just testing two pages, we are going to test all the variations that seemed to prove successful in from the last round of tests that helped us achieve such great gains in example-2.
This time we also persuade our client to try testing an increased price, we’re going to add credibility seals, we’re restructuring and eliciting better testimonials from our customers, we’re reducing the number of fields that need to be filled out on the order form, we’re testing a new headline and we’ve added a downloadable incentive that’s given away free with every purchase which has a minimal cost to our client however a high perceived value to our clients customers.
We tested several prices some lower, some higher and on much higher. The lower price of $595 had a conversion rate with the best elements of 10.4%, which end up giving our client more money than the previous tests as well as many more customers for back-end sales as an option; the higher price of $1445 and extra $445 per sale converts at get this an increase of an additional 100% on top of the previous increase compounded.
Therefore we get a conversion rate of 8.9% slightly lower than the lower price point, however astronomically more revenue. This example is not unusual, these kinds of gains can be acquired in almost every case provided you know what you’re doing and are prepared see the journey through.
5000 visits x 8.9% conversion rate = 445 sales
445 sales x the increased price of $1445 = $634,025 per a month!
The business has gone from moderately successful to a multi-million dollar powerhouse! There are so many examples like this and realistically even this example with the correct circumstances could be taken even further.
I need to bring to your attention that this is a fictitious example; however the illustrations are very real.
To learn more about conversion optimisation you can visit our CRO Training page or CRO Tutorials page.
If you want to learn more about the way we price conversion rate optimisation or about the services we provide you can visit
There are some conditions that you must meet before we can successfully run conversion testing on your website, such as minimum monthly traffic requirements etc.
Conversion optimisation is not something you start off on out of the gate; it is stepped into once you have a decent volume of traffic from both SEO and PPC.