Optimization and Conversion Rates
Understanding your audience is essential to executing successful marketing initiatives. Of course this is much easier said than done. In general, it is very difficult for us to truly understand a different point of view, unless we have actually experienced it ourselves. This is why site testing and optimization is so important. And despite its proven effectiveness, it is still not a substantial part of most marketing department budgets.
At the end of 2013, Adobe surveyed 1,800 digital marketers about their testing and optimization processes. First, Adobe asked about their current site performance:
Of course this doesn't paint the entire picture; a conversion rate of 0.5% for one company could actually be considered good. However, that is more the exception than the rule. The fact that 82% of companies have conversion rates below 5% is likely not a good thing.
So what are these companies doing about their site's underperformance? (Hint: NOT testing and optimizing)
Looking at the graph above, you can see that marketing dollars are being spent on initiatives other than the testing and improvement of site performance.
You might say, "Well maybe testing and optimization wont necessarily increase conversion rates." The data collected in this survey would say otherwise. Companies that spend more on optimization are reaping the benefits:
Those who are weighted more towards spending upwards of 25% on their marketing budget on optimization are more likely to have higher conversion rates.
So why invest in testing and optimization? Let's put this in real terms. Say your conversion point is filling out a contact form. Based on your company's average contract and the odds that the person who fills out a contact form becomes a client, you know that a contact form conversion is worth $500. As a smaller company, your website only gets 3,000 visits per month. Increasing your conversion rate from 0.5% to 3% would be worth an additional $37,500 per month, or $450,000 per year. Even using these very conservative figures for contact form value and monthly visits, a modest increase in conversion rate equates to almost a half million dollars of revenue. What's more, with tools available to us today, running tests of site elements costs practically nothing.
Interested in testing and optimizing your site? Contact us Today!