Why is it Important to Look Beyond the Customer Conversion Rate?
If CRO or ‘Conversion Rate Optimization’ is concerned, several metrics need to be taken into account. However, at the end it all pans down to quality leads and increased sales figures. For entrepreneurs and website owners, customer conversion rate might be a sacred entity— prioritized more than anything else. Then again, is it the most important metric of all?
The answer is ‘No’
When it comes to gauging the future of the CRO efforts, we need to consider several factors. Some of the largely focused areas include time on site, bounce rate, cost per conversion, cart abandonment, clicks and many more. Among these, it is the CTR which has to be prioritized. In this post, we will be detailing as why it is important to look beyond the expected realms of customer conversion rate, in order to make it big.
Better CTRs Pave Way for Better Conversion Rates
It is a no brainer that people who click are most likely to buy things. This is where an algorithmic approach comes in handy as better click through rates can actually convert a lot of viewers into customers.
Customers are important but they won’t exist unless you offer something concrete to fall back upon. As per studies, the hardest thing is to make people click rather than making them purchase. If a reader is actually clicking through, he or she is moderately interested in looking at your product.
Many firms or white hat technicians might argue that the nature of these clicks are important. However, it hardly matters as how the clicks are driven. Some of the expected mediums include social media, email newsletter, video-centric clicks, retargeting, paid searches and any other marketing channel.
The point here is that if you improve the CTR by 200 percent, the conversion rates are bound to skyrocket by at least 50 percent.
The next tip is to select the perfect website or business model as the CTRs vary with the industry. However, we aren’t suggesting website owners to opt for clickbait and other gimmicks for improving CTRs. The focus is still on quality content and information— making readers super excited about your product and services.
Customers offer a Biased Perspective
Higher conversion rates are always good but they aren’t offering a true picture of the product quality. For example, many customers who have already signed up for email newsletters will surely click through and purchase your products. These are the existing few who have already visited and enrolled for intimations and alerts. While this is actually a great thing in terms of better customer relationships and sales, it certainly doesn’t show as how well the offers are catering to newer audiences.
For a normal website, the average CR would be 2.35 percent but bigger firms can easily achieve more than 5 percent on a daily basis. The trick here is to incorporate a CTR centric approach apart from fantastic adverts.
Is your Offer as Good as it Looks?
People who know you might buy from you. There is no rocket science to this. While this doesn’t take away your efforts to achieve loyal customers in the first place, it is important to keep on evolving. If you have a 2 percent conversion rate, 98 percent are actually skipping your offers. The first thing towards making it big is to understand why such a high percentage is not converting.
This is where CTRs come in handy. They actually tell you whether the product or service actually resonates with the niche audience.
One example is to operate in a less competitive market with CTR less than 2 percent. However, as the competition is less, people will buy only from you— making conversion rates go beyond 90 percent. This is where conversion rates can be illusory and CTRs offer a better perspective into things.
Low CTR means your product isn’t as unique as it should be or you are only catering to a select few.
Customers are the reasons why the website is up in the first place. However, CTRs are the cause which will drive in better conversion rates. This automatically makes ‘Click Through Rate’, the most important CRO metric.
CTR is proportional to the conversion rate and also gives an unbiased picture of what is resonating and what is not. It is imperative to look at the bigger picture which is a huge market— spanning beyond the customers in your restricted pipeline.
CTRs give you the insights into the market and this way it will be easier to make changes and present offers— leading towards massive conversion rates.
Anand Srivastava is a budding professional, leading an entrepreneurial firm with his technical skills. He was associated with several leading companies, offering innovative takeaways for the prospective clients. Anand Srivastava is an Electronics graduate with a decade long experience backing up his technical skills. He specializes in providing...