Why should I invest in CRO as a DTC founder?
Written by Mason Pastro on September 3rd 2022
Everyone is talking about “conversion rate optimization” but is it really a worthy investment?
Here are the top 5 reasons why your competitors will blow you out of the water in 2023 if you aren’t investing in conversion rate optimization.
More importantly, why this is a “must-have” investment, rather than a “nice to have”
1. A higher conversion rate means a lower cost per customer acquisition. We all know the name of the game is whoever can spend the most to acquire a customer wins. This is where most people go wrong. They hyper focus only on their marketing efforts, new creative, new audiences, and new offers. YET, they completely neglect their on-site conversion rate. They are driving all of this traffic to their website and LOSING THOUSANDS OF CUSTOMERS!
Why? Simply because the average human has an attention span of a goldfish these days (3 seconds or less) thanks to tik tok.
So guess what? If you don’t optimize your website to clearly communicate who you are, what value you provide, and why you’re the best. People will leave!
They don’t have time to answer questions themselves. You need to do this for them and streamline the user journey. Or back to tik tok they go
2. More conversions with the same ad spend means more profit! I talk to 8 figure DTC founders all day, 9 times out of 10 their #1 concern is maintaining a healthy profit margin at scale. Let’s keep it real. Margins can be thin in ecom. Especially when you are spending thousands per day on ads, team costs, warehousing, the list goes on and on….
So what can we do to improve our profit margin? Let’s think about it. Your major costs are: marketing, COGS, and shipping. These are typically your fixed costs. Improved conversion rate can reduce your CAC (customer acquisition cost) since more of that traffic is converting at a higher rate. That's more profit right there. Marketing is now cheaper. The issue?
Naturally as you drive more traffic, with more volume, your conversion rate will decrease. The name of the game now is maintaining a healthy conversion rate AT SCALE.
This is where micro improvements on your website can give you a massive advantage over competitors.
Let’s take this test for example. We simply removed some links on their PDP and were able to add an extra $20,000 per month to top line revenue.
These changes add up. The more “winning tests” you can find the more profit you’ll make!
Why? Because this is all with the EXACT SAME AD SPEND!
Straight profit!
3. Split testing your cross-sells and upsells will skyrocket your average order value through the roof. Improve your sitewide conversion rate so now your CAC is lower. Now combine that with an increase in AOV and you’re really scaling. So now not only do you acquire customers for cheaper BUT each customer is now worth more to you.
Again, more profit! I can’t tell you how many times I encounter large DTC brands that think they are “upselling” but really have no real strategy in place. Sure maybe you have a “add X more items to your cart to unlock free shipping” and you think that’s good enough.
I can guarantee your upsell strategy sucks. And it’s not your fault. You are already balancing a million different things at once as the founder, so of course you don’t have time to really dive deep into this.
So let us take it off your plate! Want us to not only increase your site-wide conversion rate but also boost your AOV? We’ve done this for so many brands before. Here are a few examples:
4. I can guarantee your competitors are investing in CRO right now. Do you want to win this game? Do you want to really come out on top? If so, it’s time to start seriously considering investing in conversion rate optimization.
This is not a new concept. Fortune 500 companies like Ubisoft, Hyuandai. Netflix, and AMD have a large budget allocated to just CRO alone.
Why? Because CRO is one of the largest levers to pull for any online business. You spend hundreds of thousands of dollars on traffic and CRO allows you to really “squeeze the juice” out of your marketing dollars. To truly get the best bang for buck.
Don’t believe me? Check out this screenshot of companies that are currently using VWO, the #1 A/B testing tool in the world
They are doing CRO, so why not you?
5. Scaling becomes much much easier. That winning campaign you have? Ya, I can imagine it's starting to get a little pricey now. This is how it goes. The more traffic and volume, the more expensive it is to acquire customers. And if you are a boot-strapped DTC founder you can’t afford to go on Shark Tank or pitch to VC’s. Because that’s just not you.
The problem is, your competitors can afford these absurd costs to acquire customers. They have funding, you don’t. So what can you do?
Again, squeeze every last drop out of your marketing dollars! CRO allows you to do this. Not trying to sound like a broken record but it’s time you start taking this seriously.
IOS14 screwed over more brands than I can count.
Act now or forever get left behind.
Look, we know after working with hundreds of DTC founders just like you that you have a lot of shit on your plate. Let us handle this for you.
Schedule a call here: www.conversiontime.io
Worst case scenario you leave the call armed with the facts about your data and business so you know what’s holding you back.
Talk soon!
Why should I invest in CRO as a DTC founder?
Written by Mason Pastro on September 3rd 2022
Everyone is talking about “conversion rate optimization” but is it really a worthy investment?
Here are the top 5 reasons why your competitors will blow you out of the water in 2023 if you aren’t investing in conversion rate optimization.
More importantly, why this is a “must-have” investment, rather than a “nice to have”
1. A higher conversion rate means a lower cost per customer acquisition. We all know the name of the game is whoever can spend the most to acquire a customer wins. This is where most people go wrong. They hyper focus only on their marketing efforts, new creative, new audiences, and new offers. YET, they completely neglect their on-site conversion rate. They are driving all of this traffic to their website and LOSING THOUSANDS OF CUSTOMERS!
Why? Simply because the average human has an attention span of a goldfish these days (3 seconds or less) thanks to tik tok.
So guess what? If you don’t optimize your website to clearly communicate who you are, what value you provide, and why you’re the best. People will leave!
They don’t have time to answer questions themselves. You need to do this for them and streamline the user journey. Or back to tik tok they go
2. More conversions with the same ad spend means more profit! I talk to 8 figure DTC founders all day, 9 times out of 10 their #1 concern is maintaining a healthy profit margin at scale. Let’s keep it real. Margins can be thin in ecom. Especially when you are spending thousands per day on ads, team costs, warehousing, the list goes on and on….
So what can we do to improve our profit margin? Let’s think about it. Your major costs are: marketing, COGS, and shipping. These are typically your fixed costs. Improved conversion rate can reduce your CAC (customer acquisition cost) since more of that traffic is converting at a higher rate. That's more profit right there. Marketing is now cheaper. The issue?
Naturally as you drive more traffic, with more volume, your conversion rate will decrease. The name of the game now is maintaining a healthy conversion rate AT SCALE.
This is where micro improvements on your website can give you a massive advantage over competitors.
Let’s take this test for example. We simply removed some links on their PDP and were able to add an extra $20,000 per month to top line revenue.
These changes add up. The more “winning tests” you can find the more profit you’ll make!
Why? Because this is all with the EXACT SAME AD SPEND!
Straight profit!
3. Split testing your cross-sells and upsells will skyrocket your average order value through the roof. Improve your sitewide conversion rate so now your CAC is lower. Now combine that with an increase in AOV and you’re really scaling. So now not only do you acquire customers for cheaper BUT each customer is now worth more to you.
Again, more profit! I can’t tell you how many times I encounter large DTC brands that think they are “upselling” but really have no real strategy in place. Sure maybe you have a “add X more items to your cart to unlock free shipping” and you think that’s good enough.
I can guarantee your upsell strategy sucks. And it’s not your fault. You are already balancing a million different things at once as the founder, so of course you don’t have time to really dive deep into this.
So let us take it off your plate! Want us to not only increase your site-wide conversion rate but also boost your AOV? We’ve done this for so many brands before. Here are a few examples:
4. I can guarantee your competitors are investing in CRO right now. Do you want to win this game? Do you want to really come out on top? If so, it’s time to start seriously considering investing in conversion rate optimization.
This is not a new concept. Fortune 500 companies like Ubisoft, Hyuandai. Netflix, and AMD have a large budget allocated to just CRO alone.
Why? Because CRO is one of the largest levers to pull for any online business. You spend hundreds of thousands of dollars on traffic and CRO allows you to really “squeeze the juice” out of your marketing dollars. To truly get the best bang for buck.
Don’t believe me? Check out this screenshot of companies that are currently using VWO, the #1 A/B testing tool in the world
They are doing CRO, so why not you?
5. Scaling becomes much much easier. That winning campaign you have? Ya, I can imagine it's starting to get a little pricey now. This is how it goes. The more traffic and volume, the more expensive it is to acquire customers. And if you are a boot-strapped DTC founder you can’t afford to go on Shark Tank or pitch to VC’s. Because that’s just not you.
The problem is, your competitors can afford these absurd costs to acquire customers. They have funding, you don’t. So what can you do?
Again, squeeze every last drop out of your marketing dollars! CRO allows you to do this. Not trying to sound like a broken record but it’s time you start taking this seriously.
IOS14 screwed over more brands than I can count.
Act now or forever get left behind.
Look, we know after working with hundreds of DTC founders just like you that you have a lot of shit on your plate. Let us handle this for you.
Schedule a call here: www.conversiontime.io
Worst case scenario you leave the call armed with the facts about your data and business so you know what’s holding you back.
Talk soon!
Mason Pastro
Mason helps DTC founders unlock hidden revenue and scale through his conversion rate optimization and average order value boosting methods. Having been in ecom since 2016, he has a thorough background in web design, direct response marketing, and data analytics. If you're interested in increasing your store's conversion rate and average order value, book a call with us!
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