Conversion Rate: Measurable ROI
Today, growth hacking is top of mind for every organization. There are many ways to advance your business forward, but ultimately what’s most important is to figure out what’s working. In other words, you want to determine where you’re being most effective and replicate these processes. That said, it’s very difficult to identify precisely what is working in order to measure growth. In my experience, you should start by optimizing your conversion rate and use it to track your success.
First, improving your conversion rate demonstrates immediate ROI. For example, if you can get more website visitors to sign up for services, this is a clear indicator of success. As a result, your activities associated with optimizing conversion rate are very measurable. Most importantly, your competitors cannot effectively replicate the strategic advantages that you’ve used to convert more customers. They may be able to copy visuals or text used in a campaign. However, the subtle tweaks that you make to your customer journey in driving conversion are not easy to access.
From a long-term perspective, conversion rate optimization builds sustainable value for your business. In addition, you’re able to accelerate the scalability of your business for consistent growth. For example, if I left a company, the conversion best practices that are in flight would not stop. Conversely, if you stop a traditional ad word campaign, your momentum is effectively lost. Instead, having a dedicated focus on building a successful conversion process ensures that your business is continuing to move forward.
One of the unique challenges in optimizing conversion rate is that the responsibilities are shared by the product team and the marketing team. As a result, it can be challenging to outline roles in setting strategy. Furthermore, the reporting structure within your organization may affect who ultimately sets the direction for your business. For example, some product teams report into marketing – or they report into engineering.
Ultimately, product and marketing must align on how the team is going to acquire more customers through conversion. From there, the ability to execute a sound strategy and sustain success becomes much easier.
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About the speaker
Chris Neumann is the Founder and CEO of CROmetrics. Chris is a start-up veteran and works with companies to optimize conversion of conversion through his consultancy. Chris helps companies grow exponentially through data-driven decision making: A/B testing, user testing key flows, end-user surveys and interviews and writing SQL queries to better understand customer needs and behavior.