Conversion rate optimisation offers exponential benefit

I was at SMX London back in May (a search marketing focused event) and there was a quiet buzz around conversion rate optimisation (CRO) – many see it as one of the next growth areas in digital marketing.

Conceptually, conversion rate optimisation is simple enough – use split testing [testing entirely different pages - good for broad tests, e.g. structural changes, and low traffic websites] and multi-variate testing [testing individual page components - copy, images, etc.] techniques to test different versions of web pages to determine which pages convert more customers.  Rinse and repeat.

This works for e-commerce check-out processes, newsletter sign-up forms, document downloads and anything else you can measure – which is just  about any interaction with the site.

Increasing the number of conversions has obvious benefits, but there is another angle.  If you increase your website conversion rate, you also benefit every single channel which funnels into the website – they will all have an increase in their ROI as a result of a single activity on the website – an exponential benefit.  If you increase your conversions you will have a better ROI from PPC, SEO, display advertising, even press-ads (if you pass the customers through a dummy URL to track them).

Makes a lot of sense, so why then, has it taken so long for conversion optimisation to reach the masses?  ColdFusion and PHP are over 15 years old and in that time we have used them to develop complex, multi-faceted, user-journey-focused, CMS-driven sites with deep database integration and shiny JQuery interfaces (providing a double helping of bells and whistles), but we haven’t really got an easy way to manage something as relatively straight forward as split testing.

This non-adoption of the obvious is nothing new, and the explanation is simple.  The success of mass adoption of a concept is largely based around how easy that concept is to access.  Preferably we, as the consumers of said concept, would like the concept packaged into an online service, with a really sweet interface and deep reporting.  Oh – and we’d like it free please.

Google did just that, and gave the whole “web analytics” industry a near-mortal blow, when they acquired Urchin and then gave away high quality analytics for free.  And that was only 2006 – it feels like Google Analytics has been with us forever.

But I’ll take your Google Analytics and raise you a Google Adwords.  Up until 2002-3, when Adwords launched, we were limited to banner ads (animated GIFs!), costed on a CPM basis, and we were struggling to manage the whole thing via incredibly clunky interfaces.  Adwords’ really did level the playing field – a little clichéd, but maybe one of the times when it is actually appropriate.  Adwords ease of use, and its flexibility in targetting keywords brought online advertising to the masses.

Well, Google Website Optimiser is the new kid on the block.  A tool that allows split and multi-variate testing via a simple interface, with deep reporting and integration into Google Analytics.  There are other similar tools out there, and some that offer similar or better services, but with Google in the market these guys had better diversify or find a niche market because Google will flatten this particular playing field as well.

And, conversion rate optimisation is not alone in the “grossly overlooked” category.  I would argue that email is the most abused tool in the digital toolbox.  It is dirt cheap and can be personalised and customised to the nth degree, so why are the majority of marketing emails I receive a simple one-size fits all, generic pap?  Same problem – good email is in the “too difficult” box, until Google release Google Email Broadcast of course!

So, if your business has a transactional website you should be exploring conversion rate optimisation.  Maybe divert some attention away from Facebook (yes I know it’s all shiny and lovely, but this should probably take priority) and into increasing conversion rates – there’s no point pouring more prospects into the funnel until the conversion process has been optimised.