Create A Conversion Optimization Budget In Only 5 Steps

Conversion rate optimization can be a complex area and I will help you get your C-suite onboard so you can improve your bottom line and everyday work-life. Sometimes the answer is right in front of us and this problem and situation is fascinating but also understandable. Older business know-how and C-suites aren’t in tune with internet marketing and conversion rate optimization so how can you be a cameleophant and change color and language to succeed with your conversion rate optimization budget. You could think that everyone in 2019 knows how important conversion rate optimization (CRO) is but do you have a CRO budget with your C-suite onboard?

Conversion optimization is essential of being or becoming a data-driven company!

Conversion Optimization is a revenue driver

I want to explore and solve this phenomenon because CRO is a revenue driver, and it can have a positive impact on your business at every stage in the lead funnel, full-funnel or customer journey.

A good CRO campaign requires investment of time – and money. If you can find people in your organization or have people with titels like VP of  Sales, Growth Manager, CMO or CFO you know that you can always talk the same “language”, the language of conversion rate optimization is all about money – a language they should speak very well. You know CRO can increase your bottom line but the challenge is to get your C-suite on the same page and showing them that the end result is worth the resources that you need to reach the goal. How can these different mindsets intersect and align in a CRO budget – use these necessary first steps to improve your activities towards a better bottom line:

Are you doing heavy investments in Google Ads, account-based marketing and paid social media?

Then you must calculate the cost of a lead because as a marketer you want to optimize for revenue and not only for conversions. If your average lead value is $30, and you’re generating 500 new leads a month, you know you can safely invest $15,000 in CRO infrastructure, tools, and talent. When your lead value increases, so can your CRO budget.

I would recommend (if you want to go deeper) to calculate the lead value for each important traffic source and you’ll know what certain channel like Facebook, Instagram, LinkedIn or Google Ads give you the most revenue potential if you use UTM and tracking correctly.

Set Goals And Big Goals Need Big Budgets

When you set your conversion goals remember that they should move the needle with profitable returns for your company. Document and use your current conversion state and your must have conversion state as benchmarks. You could discover that a decrease in conversion rates can lead to an increase in sales – what?

Example, you try to test out something differently on a pay-per-click landing page that drives traffic that is optimized for a target group and we increase the pricing or lead value on a specific action a visitors does from $80 to $145.

For every 1000 people that convert in this example, you would make $145,000 instead of $80,000. So even if your conversion rate drops from 5% to 3%, you get a higher lead value with a pricing structure that is optimized to appeal to your target. You could then start generating an idea backlog for more tests that is highly targeted optimizations to increase the new conversion rate – do you follow where this is going?