When it comes to conversion optimisation, you will soon encounter the acronym CRO. This is generally thought to stand for Conversion Rate Optimisation. However, The Reference prefers to think of CRO as Continuous Revenue Optimisation. If you focus on constantly improving revenues by means of A/B or multivariate testing, for example, you are building on long-term success. A company which decides to save money on CRO in the short term will not be taking full advantage of the growth potential in the long term.
Let us refer to a well-known statement by Amazon CEO Jeff Bezos: “If you double the number of experiments you do per year, you’re going to double your inventiveness”. The more inventive the test variants, the greater the chance of an improved conversion ratio and improved revenue growth. It goes without saying that CRO should not be regarded as a money tap which you can simply turn on and off at will. No, it should form part of an ongoing and coordinated optimisation programme. The largest online companies understand this and are therefore making it a top priority. It forms an inextricable part of their DNA, which allows them to grow even faster. For example, every day, booking.com uses specialist optimisation teams which are responsible for the company's explosive growth.
Committed to making your company grow, but not yet started a coordinated CRO path? How can you personally ensure that CRO becomes firmly embedded in your organisation? Should you climb the barricades like a pioneer? Neither giant leaps nor baby steps will help you to progress, or at least not at the desired pace or with the anticipated long-term result. The Reference uses a maturity model which helps you to develop beyond infancy with no growing pains.
Which steps are required in order to transform your aspirations into reality?
First and foremost, it is important to assign your organisation to the right step in the maturity model. Then you should ask yourself whether the current company culture will allow you to rise to the next level.
- Have you selected the right tools?
- Are you working with the right people?
- Which methodology will you use?
- Which ambassadors help you reach the next level?
In order to steer possible answers to these questions, we elaborated on the maturity model further for each level:
In order to continue to grow online as a company, you must try to get as many colleagues as possible to understand the importance of CRO. It may not immediately be feasible to make CRO an integral component of your organisation. Only when you take the various steps into account and strategically substantiate them will your company be in a position to grow and keep on growing. No matter where you are starting from, The Reference can help you at every stage of this maturity model.
For example, for an international client we defined a feasible yet challenging growth path for integrating CRO in the organisation as part of a wider optimisation and lead-intelligence programme. Each level represents one year with specific activities. The plan is to become an influential player in the field of CRO within 3 years. Year after year, we are expanding the client's knowledge level in order to achieve the specified goals.
In consultation with the client, we determined the incremental increase in leads. Because of the high level of work pressure, the client's current team members gratefully accepted the suggestion to bring in extra manpower in order to achieve the targets for 2019. The board were also extremely pleased to discover that our plans did not include an increase in the service budget, but rather an investment in the team and the knowledge level.
At The Reference, we regard the strategic coordination of optimisation programmes and operational knowledge enhancement as valuable spearheads in our approach. Investing in CRO means investing in structural growth as a business. How are you currently taking advantage of CRO? Would you like to find out how we can make CRO work for your business? Contact us for a chat with one of our experts.