I’ll explain why in a second.
But first, let’s talk about when you need more traffic and how much is this costing you.
In the beginning it’s OK, you need as many eyeballs as possible on your landing pages so you can start making those sales and bring in the cash. But after a certain level, there is a dilution effect that makes your traffic strategy as efficient as trying to paint the ocean red with a bucket of ink.
Here’s how it looks like in a graph. It shows you exactly why from a certain point onward investing in more traffic means simply wasting your money, while using CRO makes all the difference. We used a CPC of $0.225 and we played with the data using our brand new growth calculator.
Besides the dilution effect, the water in the digital marketing pool is freezing much faster these days. Meaning it gets harder and harder to get a good ROI on growing your business with ads as the current trends are showing bigger costs and less returns.
A recent study by Search Engine Land concluded that branded traffic is getting more expensive:
“On average, CPC to maintain a top position for a branded search has increased more than 60 percent.”
The thing is the previsions for 2017 are that the costs of PPC ads are going to increase by 5-12% due to increase competition.
And on Facebook the trends are the same. You need to get more and more money out of your marketing budget to bring people to your site through ads.
So maybe it’s time to ask another question:
Is it the right time for you to start doing conversion optimization and stop wasting money on traffic?
First thing first, you need to understand if you are at the point where spending more money to buy traffic is actually hurting your business.
Wouldn’t it be wonderful if you could figure this out in just a few minutes without spending ages on excell spreadsheets?
Well, dream no more because our Ecommerce Growth Calculator does exactly this. And it’s free for you to use anytime and as many times you need it.
Here’s how we came up with this magic business tool. We first realised we needed one for ourselves. That’s how we discovered that some of the potential clients that came to us were too small and they had no ROI if they started using optimization. These ones actually needed more traffic.
But in the same time we discovered that other clients were able to get a 9000% ROI with conversion rate optimization.
“If you candouble your conversion rate, you halve your customer acquisition cost. If each customer has a lifetime value of $1,000, and doubling your conversion rate leads to an additional 200 customers per year, the return on investment of your CRO tool is a whopping $200,000 return from a $6,000 spend.” – Stewart Rogers, VentureBeat
And to give you an idea of the average ROI for companies using CRO tools this is around 223%, according to a report by VentureBeat
So being able to figure out in just a few minutes if you too should start using CRO tools for your online business is quite awesome. And this is exactly what our Growth Calculator can do for you.
So without further ado, let me introduce you to
The eCommerce Growth Calculator
Here’s how it works.
All you need to do is insert your own data and the algorithm will estimate the annual profit adjustment, the amount of man-hours per month that is necessary to do conversion rate optimization and many others. And it’s especially made for ecommerce. How cool is that?
Anyway, here’s what data you need to have at hand so you can play with the Growth Calculator:
– the total number of visits per month on your website
– the total number of page views, not unique, in a month on your website
– your conversion rate in the last 12 months
– your average order value, which you get by dividing your total revenue by the number of orders
– your current margin, meaning your net income divided by total revenue
Once you have these data you’ll receive three growth scenarios: one traffic driven growth scenario and two conversion-driven growth scenarios.
But, you don’t have to take my word for it. Try it out and see for yourself: Growth ROI calculator
Anyways, we all learn better from real life examples than theory. So have a look at what we did for one of our clients, AVON, to help increase their conversion rate without a penny spent on more traffic.
Avon Case Study – How we increased the conversion rate by 96% on a product category page
AVON is a globally recognized brand sold through nearly 6 million active independent Avon Sales Representatives worldwide.
Their challenge was to replicate the real and personal experience delivered by sales reps into an online digital experience. And to increase the performance of their make-up category.
If you’re interested in the whole case study you can download it here. In the meantime, I’ll give you the brief version.
The first step was to figure out why was this category underperforming? We dived deep in Google Analytics and we ran a few specific surveys. We discovered that the main micro-conversion for this category was the usage of “eyes colour” filter. And one of the issues was consumers were not sure if the desired product will match the colour of their eyes.
So we added a few personalized widgets where a makeup artist offers to help with the product choice according to each specific eye colour.
These widgets plus an on exit pop-up and a consistent reference to the eyes colour through the checkout process lead to these engagement results:
And to +20% more conversions. And all this happened working with the same traffic.
This is just one of the hundreds of success stories of companies that stopped wasting money on more traffic and invested wisely in conversion optimization.
Is this the case for you too?
Should you also stop spending money on traffic and start working on your conversion optimization tactics and tools?
Find out now with our growth ROI calculator.