When your website isn’t generating enough revenue, deciding whether to focus on increasing traffic or improving conversions can be tough. Both strategies are essential, but knowing which one to prioritize depends on your current situation.
Driving more traffic is a common first step for many websites. The logic is simple: more visitors can lead to more sales. For instance, if your site gets 10,000 visitors per month and converts 2% of them, doubling your traffic should, in theory, double your revenue. However, this only works if the quality and cost of traffic remain consistent.
If you attract low-quality traffic, your conversion rate may drop. Bringing in uninterested visitors can result in the same number of sales but from more visitors, which hurts your overall conversion rate. It's vital to maintain traffic quality and monitor costs. You should also be aware that traffic acquisition costs can rise as you target broader audiences, making it harder to maintain profitability.
CRO becomes more critical as your traffic increases. If your site has a decent flow of visitors but few conversions, improving the site’s ability to turn visitors into customers is key. For example, if you have more than 500 monthly conversions, you can start A/B testing to see what changes might improve your conversion rate.
Conversion rate is key to success. Small improvements can lead to significant revenue growth.
Conversion Rate Optimization (CRO) involves understanding how users interact with your website and identifying barriers to conversion. This can range from fixing technical issues to enhancing the overall user experience. Studies show that even small improvements in conversion rates can lead to significant revenue growth.
It’s important to strike the right balance between traffic and CRO efforts. Traffic generation should not be ignored, especially if your site is new or struggling to gain traction. Bringing in high-quality traffic is crucial for any online business, but as your site grows and conversions increase, CRO becomes a powerful tool to extract more value from your visitors.
1. If You’re Just Starting Out: Focus on building traffic. If your site is generating less than 500 conversions per month, your primary goal should be increasing the number of visitors. At this stage, your site likely needs more exposure, so working on SEO, PPC, and content marketing should be your main focus.
2. As Traffic Increases: Start balancing your efforts between driving more visitors and converting them. If your site is generating between 500 and 1,200 conversions per month, you can start experimenting with CRO. Begin with simple A/B tests to understand what elements of your site are working and what needs improvement.
3. High Traffic and Moderate Conversions: If your site receives more than 1,200 conversions but less than 2,000 per month, it's time to focus heavily on CRO. With a solid base of traffic, you can afford to run multiple A/B tests and optimize various elements of your site to improve conversions.
4. When You’re Established: If your site or landing page generates more than 2,000 conversions per month, CRO should be your primary focus. At this level, even small percentage gains in conversion rates can lead to substantial increases in revenue. Ignoring CRO at this stage means leaving significant money on the table.
You might have heard the term “social media traffic is junk traffic” because it often has lower conversion rates compared to other sources. However, this view is too simplistic. Social media users may not convert on their first visit, but they are in a different stage of the buying funnel. They are often browsing or interacting socially rather than actively shopping.
Retargeting these visitors through social media is powerful. Studies show that retargeted customers are 70% more likely to convert. While social media may not immediately drive sales, it plays a critical role in brand awareness and building a relationship with potential customers. The key is to approach social media traffic as part of a broader strategy that includes retargeting and nurturing leads.
In conclusion, the best strategy is often a mix of both traffic generation and CRO, adjusted based on where your site currently stands. Start by driving traffic, then shift focus to CRO as your conversion numbers grow. Balancing these two elements will help you maximize your online revenue and build a sustainable business.