Work smarter, not harder! CRO stands for Conversion Rate Optimization. In layman's terms, that means striving to get better results from what you are already doing by optimizing your performance, and who doesn't want that? Here's a breakdown of CRO marketing and how it can rapidly ramp up user engagement, conversion rates, and leads.
Table of Contents
- What is CRO Marketing
- Benefits for Revenue Growth
- Examples Strategies
- Success Stories
- Measuring Success
What is CRO Marketing
Conversion rate optimization (CRO) marketing isn't a common term in the world of digital marketing, but it's an inherent part of how marketers generate leads online. The goal is simple: convince more website visitors to follow through on a specific action, such as signing up for a webinar, downloading an email, subscribing to an email list, or, most importantly, making a purchase!
A company’s online presence can - and should - be continuously improved to stay aligned with the business goals and objectives and the buyers’ needs. Analyzing and optimizing key points across your buyer’s digital experience is a great way to implement quick wins that increase target audience engagement.
Benefits of CRO Marketing for Revenue Growth
When done well, CRO marketing holds visitors' attention and encourages them to explore your website rather than click away. Keeping them engaged significantly increases conversion rates and revenue. More specifically, the benefits of CRO marketing include:
- Reducing cost per acquisition
- Lengthening visit durations
- Making the marketing funnel more efficient
- Building brand affinity
- Increasing customer lifetime value
Despite these proven benefits, many marketers aren't employing CRO strategies. For example, only 17% of marketers use landing page A/B tests to improve conversion rates.
Example CRO Marketing Strategies
Implementing CRO marketing strategies requires an agile mindset, with consistent tracking, testing, and analysis to continually respond to what is - and is not - working. Here are some strategies companies employ to stay on top of how to engage with their buyers most effectively over time.
Machine Learning for Personalization
Artificial intelligence (AI) and machine learning have made it easier for organizations to personalize a variety of elements of their marketing. Tools like HubSpot can customize web pages, marketing content, or sales content based on various attributes collected from the cookies of the user visiting the page. For example, if a new visitor comes to the website, the call to action is “Subscribe to our blog.” If an identified and tracked marketing qualified lead visits the website, the call-to-action is “See a Demo.”
Recommendation engines are another popular option. They help businesses align their product or service recommendations with customers' interests and needs. Companies such as Amazon, Spotify, and Airbnb are well-known for using this type of tool.
Those two examples are just the tip of the iceberg! There are tens of thousands of martech applications, and the industry is booming with ideas about how AI can create a stronger connection between brands and customers. Staying open to new approaches and exploring ideas is essential to CRO marketing (but try to stay out of the rabbit holes!).
Chatbots
An AI-powered chatbot can reduce friction rates by providing customers with instant answers. Rather than scouring a website to find the information they need, visitors can get a direct, real-time response to their questions or concerns.
Some chatbots also have personalization capabilities. They prompt customers with specific questions they might have based on the page they're currently visiting.
User-Generated Content
Many businesses use social proof on their websites, but user-generated content can more effectively drive up conversions. An organization might ask users to submit videos, images, or quotes that they can use on their homepage or landing pages. Others may take a more proactive stance and search for existing content that users have posted using their brand name, products, or relevant hashtags.
Analytics and Other CRO Tools
The core of CRO marketing is analyzing visitor behavior and optimizing conversion funnels. Millions of companies rely on Google Analytics (GA4) data to gain insights into their website performance. CRO software, such as HubSpot, consolidates sales and marketing data into one platform, providing a holistic view of the entire buyer's journey. Another great tool, Hotjar, has also become increasingly popular as it facilitates A/B testing and clarifies issues like user drop-offs.
Success Stories: How CRO Marketing Transformed Businesses
Big-name companies get a lot of credit for achieving growth with CRO marketing. For instance, Netflix uses A/B testing to determine what customers want. By experimenting with different thumbnails, layouts, and recommendations, they get more conversions from users at the end of their free trials.
However, many smaller organizations have also flourished due to CRO. Consider these examples:
- After changing their basic contact form to a multistep form, Venture Harbour's conversion rate increased from 0.96% to 8.1%.
- AliveCor achieved a 25.74% higher conversion rate and a 27.39% increase in revenue after A/B testing their CTA.
- DashThis increased onboarding funnel completion by 50% by making small changes to their mobile app, such as visually highlighting buttons and adding a search bar.
Each of these cases underscores how even seemingly minor adjustments to a business's marketing approach can profoundly impact conversions and revenue.
Measuring the ROI of CRO Marketing Efforts
The core of CRO marketing lies in experimentation and testing, and businesses must consistently evaluate whether their attempts are worthwhile. Here are some analytics to include in your monthly reporting to steer you toward optimization strategies.
Website Bounce Rate
Did the user take action (click, fill out a form, buy) or not? If the bounce rate is low, that means the user is engaged and taking action on your website. The lower the bounce rate, the better!
Call-to-Action Conversion Rate
How many people took the action you guided them to on a web page or email? For example, if you set up a popup call to action to “Subscribe to Our Newsletter” on your blog articles, the conversion rate tells you how many people click that popup and fill out the subscribe form.
Landing Page Conversion Rate
How many people filled out a form? If the landing page conversion rate is high, that means users are interested in your offer. For example, if 100 people visit your landing page, and 10 of them fill out a form, your conversion rate is 10%. If 20 people fill out the form, your conversion doubles to 20%.
Lifecycle Stage Advancement
Is your target audience progressing along the buyers' journey? For example, if you have 100 leads, and 10 of them convert to a sales opportunity, your lead-to-opportunity conversion rate is 10%. So if you want 20 new sales opportunities, you know you need to get 200 leads.
The value of a CRO strategy may also come down to other key performance indicators (KPIs), such as its effect on the conversion rate, average order amount, or revenue per visitor. Establishing clear metrics before implementing a new CRO strategy allows a business to objectively and honestly measure its success.
Too often, sales and marketing teams create content, strategies, and campaigns that don’t get the attention they deserve. CRO marketing is a great way to improve outcomes from your existing sales and marketing assets for short and long-term gains.
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