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3 ways to enhance your bottom line using CRO

3 ways to enhance your bottom line using CRO

Conversion rate optimisation (CRO) is often employed to boost sales and leads and there is no doubt that a high number of website visitors combined with strong conversion rates is critical to business growth. But while we are growing our businesses we also need to keep a close eye on making sure our financial model is sound and that’s where CRO can be just as beneficial. Conversion Rate Optimisation (CRO) is the process of testing a range of experiences to find which combination provides the best results. These results are usually related to increasing positive user actions such as newsletter sign-ups, memberships or donations, and improving site engagement, for example turning visitors into leads and leads into sales. But one important benefit seldom discussed is how CRO can find more efficient ways for a website to fine-tune the way it interacts with customers, which can represent significant cost savings. Here are three ways CRO can work in this scenario: 1. Find and reduce unseen costs Experimentation helps businesses in many ways. Being able to test user behaviour through CRO gives organisations the statistical rigour to inform decision-making with regard to a visitor's journey. While testing can highlight obstacles that prevent customers from completing an action, which might affect leads and sales, it also reveals where a business might be incurring additional cost. US footwear company Brooks, for example, noticed that customers frequently bought two or more pairs of shoes in one transaction. You might think this indicates that sales were booming. A closer look showed that they were buying the same type of shoe in different sizes to get a better idea of fit. They would then send the less suitable pair back, which cost Brooks millions of dollars a year. The brand ran a simple test. Whenever a user bought two or more pairs of the same shoes in different sizes, a pop-up would ask if they were having trouble finding the right size. This real-time intervention provided contact details – a phone number to call and a link to its online customer service chat – of an expert who would help with sizing. The test reduced returns by 80%, a cost saving of millions. 2. Identify potential issues Being able to test and hone a process before implementing changes to a system also helps to prevent unforeseen negative consequences, saving companies from making expensive mistakes. UK financial institution Barclays faced a wave of angry customers when it switched its stockbroking service over to a DIY platform over a bank h0liday weekend last year. The new service displayed information differently and made other unwarranted changes to functionality. The transition also presented administration problems where customers couldn't access their accounts and couldn't locate transaction details. The backlog of issues meant some customers lost access to their money, and the mass exodus of unhappy customers caused a delay of between 6-12 weeks to transfer an account to other rival financial institutions, a massive dent to Barclays' reputation. One of the main reasons to optimise is to have confidence in what experience delivers the desired results. If Barclays had instead tested potential changes incrementally instead of implementing a wholesale change over a weekend, it would have found possible roadblocks and been able to make a smoother transition. Employing a CRO methodology means organisations can test and only implement once, saving the business money operationally. 3. Fine tune your customer service When calibrated correctly, CRO methodology can be used to help businesses finetune their delivery and customer service processes, including reducing the load on staff by better enabling customers to self-service. One of our clients, a banking institution, noticed that a lot of its credit card customers would contact the call centre to activate a new or replacement credit card, even though credit cards could be easily activated online. We noticed that people would return to the page where they first found more information on the card and had responded to a call for action to sign up, so we ran a test by positioning a button at the top of the page asking users if they were looking to activate their card. Adding one simple button reduced call rates by 30%, saving the banks thousands of wasted hours (and costs) in cases where the customer could self-service instead. CRO was the perfect way to identify where improvements could be made, without disrupting the entire site. Optimising a website with CRO is not just about delivering more leads and sales, it's about improving the customer journey. Two contributing factors to making the journey smoother for the customer is improving processes and making systems more efficient. In addition to happier, better serviced customers, the benefit to the business is a significant reduction in the cost of operations. CRO is not just for sales and revenue – it also represents savings. If you want to know more about the basics of Conversion Rate Optimisation (CRO), I recently wrote an article on the four things you need to know to get started. Read it here. Please feel free to contact me to speak directly about your website and how we can help you engage with your customers and create successful conversions via email hello@newrepublique.com