We love low-hanging fruit at Scaling Retail. It’s so fulfilling to teach businesses how they can capture more business without a ton of additional money. Read on to learn how you can 5x your sales without increasing your advertising spend…
E-Commerce Conversion Rate Optimization (CRO)
The market for e-commerce and mobile sales was over $2 trillion in 2017– even with a median e-commerce conversion rate (CVR) of 1.84%. How did the top 10% websites fare? They had a CVR of 6.25%.
These are fascinating figures. If you think about how the average website or digital experience is converting at such a low rate, you can start to shift your investment dollars into conversion rate optimization (CRO) instead of pouring more funds into your digital marketing budget.
In the world of online sales, we typically only discuss A/B testing, but split testing alone isn’t enough. CVR is such an important piece of the pie and it’s almost always overlooked.
Let’s consider the average emerging market business doing $500,000/year in sales at a 1.84% conversion rate. Imagine if that CVR went up to 6.25% by investing in CRO!
For a specific example, let’s examine a brand that works with Scaling Retail and did $350,000 in e-commerce sales in 2017 with a conversion rate of 1.14% (720 transactions divided by 63,000 users) and an average order value of $486 (sales divided by transactions).
If they converted visitors at 6.25% instead, their annual e-commerce sales for the year would have been $1,913,625. That is MAJOR – a 5.5x increase in sales and a conversion jump that would place them in the top 10% e-commerce websites.
How to Put CRO into Action
So how do you increase your conversion rates to join the top 10% of websites?
Actively test 10 distinct landing pages.
You’ll need to test 10 different landing pages with 10 different designs and 10 different sets of copy. This seems like a staggering expense but it isn’t when you compare it to increasing digital marketing spend. You’ll pay for additional landing pages (web development, design, copywriting) but won’t need to increase advertising spend. This can make a huge impact on your existing business and your bottom line.
This can be out of budget for a smaller brand but if that’s the case, you’ll be happy to know that testing just 4 landing pages is enough to really move the needle and increase conversion. If your company makes over $200,000/year online, start thinking about testing at least 4 landing pages to make significant progress.
Of course the businesses that already get a lot of traffic stand to get the most from this strategy. Small businesses, continue to invest in securing additional traffic via online paid advertising, influencer campaigns and other digital initiatives. And if you’re a fresh startup or getting ready to launch, build your business with this sales-centric move in mind. It’s a total game changer.
Can you see why we love low-hanging fruit? You can make small changes to reap a lot of benefits. Think: little effort with lots of potential. CRO optimization is simple to execute and cost-efficient with the potential for hefty returns. Make it a priority in 2018!
Ready to execute new and powerful strategies for your retail business? The experts at Scaling Retail can guide you through e-commerce and wholesale sales, branding, market entry strategies and more. Email us today to book a consulting session: firstname.lastname@example.org.