How (and Why) to Budget for Conversion Rate Optimization

Written by Formstack on April 20, 2015

Posted in Lead Generation

Is your team budgeting for conversion rate optimization this year? You should be. It may just cause a 20% jump in how many website visitors become paying customers. Or boost your monthly revenue by $106,000. (Really. It happens.)

Not sure where to start? Relax! Diving into CRO doesn’t have to mean expensive consultants or big budget changes. In fact, you may already possess many of the tools and talents you need. You just have to start maximizing them.

So, why make 2015 the year to budget for conversion rate optimization?

TRAFFIC IS ONLY GOING TO GET YOU SO FAR.

Devoting all your marketing resources to search engine optimization and pay-per-click ads can get very wasteful, very quickly. Without a plan to convert the visitors you’re attracting, you may never experience significant returns on investment.

Formstack’s latest report shows that web forms convert at an average of 11%. This means 89% of website visitors aren’t responding to offers and calls to action.

That’s some serious revenue potential! Instead of spinning your wheels on dead-end roads, you can pave new ones with a CRO strategy that turns non-converting visitors into paying customers.

MORE EYEBALLS DOESN’T ALWAYS MEAN MORE PROFITS.

It’s easy to get excited about traffic increases. “Look, our website got 6,000 more views last month!” you might think. Or, “Our email list doubled after this week’s promotion!”

But if those page views and opt-ins come from customers simply seeking the latest coupon codes, the one-and-done spikes will have little impact on your bottom line.

What’s really exciting is spikes in sales. When you optimize landing pages for conversions (and not just traffic), a few hundred new visits can also mean hundreds of loyal, long-term buyers.

A conversion rate optimization strategy will help ensure more of your traffic is converting into revenue.

CRO HELPS MAXIMIZE YOUR MARKETING SPENDING.

Having a hard time determining how much to spend on each channel? Conversion optimization eliminates the guesswork.

When you build a CRO budget based on lead value, it’s easy to see where your marketing money should go.

For example, let’s say you’re a software vendor with an average lead value of $6. If you’re capturing 3,000 new leads per quarter, you can safely invest $6,000/month on marketing software and services. You can take this a step further to calculate your lead value by traffic source and see if certain channels, such as search or social ads, offer more revenue potential.

Conversion rate optimization does have potential to get highly involved and complex—particularly for companies that hire big agency consultants. But to get started, all you really need is a handful of robust tools, a few key goals, and a lot of enthusiasm. Planning your budget and monitoring progress will help ensure your investments result in real gains.

Ready to optimize for conversions?

Start by setting a budget and the rest will fall into place. Our new guide will walk you through the process, step by step. And it’s 100% free.

GET THE CRO BUDGET E-BOOK