ROI-Focused CRO
A well-structured CRO strategy offers the potential to deliver significant revenue benefits. However, many organizations struggle to translate their optimization efforts into tangible business value. The reason is that CRO requires a level of insight and sophistication that extends beyond simple button color tests or headline variations, requiring an organizational mindset that transcends siloed teams. CRO must be viewed as a strategic initiative that supports everything from website content creation to paid media to product development. Source https://www.conversionteam.com
Measuring ROI is the only way to determine if your conversion rate improvement efforts are delivering the business value you need. It’s also the only way to justify ongoing or increased CRO budgets.
Conversion Strategy Consulting: Build a Path to More Sales
To calculate ROI, compare the revenue gains generated by your CRO tactics to the costs associated with implementing them. This will allow you to prioritize strategies based on their impact on your top metrics.
For example, the Hubspot team found that including a CTA in the text of a blog post increased leads compared to placing the same call-to-action banner at the bottom of the page. The result is a direct increase in lead generation without incurring additional overhead.
To measure ROI, you need to estimate the baseline revenue for your site and then forecast the potential lift from each test. To do this, divide your current monthly revenue by the expected gain and multiply by 12 to get an annualized revenue forecast. With this information, you can determine the percentage of your revenue that’s at risk for a potential loss from each test and adjust accordingly.