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Get more sales: generate more traffic or optimize conversions?

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Conclusion: depends where you are in terms of volume, can testing really bring something

2 - Could CRO really make a difference for my business?

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Let me put it that way: if you need to increase your sales you basically have 2 options to choose from:

  • either you spend money on acquiring more traffic (and keep converting that traffic at the same level)

  • or you invest in CRO to convert more of your visitors into customers (without bringing additional traffic)

SLIDE

Let’s compare both options by taking an example. Let’s say I need to improve my sales by 50%. I currently get 5,000 visitors a month. For now I convert 2% of this traffic on average, which represents 100 transactions a month. I only sell 1 product that costs $50 so my monthly turnover is $5,000.

If I were to improve my sales by 50% to get a $7,500 monthly turnover I would need to choose between:

  • spending an extra $1,250 on acquiring new traffic

  • or improve my conversion rate from 2% to 3%

I am a rational person so in a perfect world I would choose whichever option is the most cost-effective, which means that I will pick CRO if - and only if - it costs less than $1,250 to get a +50% conversion boost. We are not, however, in a perfect world, and it is not possible to predict by how much you will be able to improve your conversion rate if you spend $1,250 (either in time spent or money) on CRO. It just doesn’t work that way.

Still - and even though CRO might sometimes be more expensive to achieve the same result - I definitely recommend you pick CRO. Why? Because I am a conversion consultant! No just kidding! Because any conversion increase created during that month will last long-term whereas you would need to spend $1,250 every month to keep selling 50% more products. So even if you don’t get a positive ROI right away it will definitely pay off after a few months. And you will be able to get a higher monthly turnover without having to spend more money on acquiring traffic every month.

I encourage you to run the numbers for your business and see which option would be the most beneficial.

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