Every website’s conversion rate can be improved. We’ve never seen one that isn’t failing in at least one of the Six Factors for Improving Website Conversion Rate.

To calculate your potential ROI on a Conversion Optimization or Landing Page Optimization project, you need to estimate how much conversion rate improvement you can hope to achieve.

How do you estimate your potential conversion rate improvement?

Your potential conversion rate improvement from Conversion Optimization testing depends on a factor that I call your ‘Conversion Rate Elasticity’ (or CRE).

Your CRE is a measure of the degree of impact that making changes to your site’s pages will have on your conversion rate. A site with a high CRE will see dramatic differences in conversion rates for various pages in an A/B split test or Multivariate test.

Your potential conversion rate lift is shown as:

So, if you have a high CRE, improvements you make to your site will increase your conversion rate more than sites with a low CRE.

What influences your Conversion Rate Elasticity?

We’ve identified several factors that influence your CRE, such as:
• Value Proposition potential – If your Value Proposition is attractive to your target audience your conversion rate is probably being reduced by easily change-able factors, which can be tested.
• Degree of external Urgency – In situations with high external urgency, during promotional offers or purchase deadlines, CRE is reduced.
• Primary Call-to-action type – The CRE is inversely proportional to the cost of the call-to-action (CTA). For example, lead generation CTAs will generally have higher CRE than purchase CTAs.
• Traffic quality – Traffic with high Relevance to your value proposition is just waiting to be shown a well-crafted landing page and will have a relatively high CRE.
• Improvement potential in terms of Relevance, Clarity, Anxiety, Distraction and Urgency – If you’ve never analyzed, tested or improved the six LIFT Factors on your site, your CRE will usually be higher than if you’ve done many expertly-designed tests.

How to estimate your potential conversion rate?

This is probably our most commonly asked question: “What should my conversion rate be?” Unfortunately, this is an impossible question to answer accurately and is actually irrelevant. A better question is: “Can my conversion rate be improved significantly?”

In our experience, the answer is, “Yes!”

Whether or not your website has a high Conversion Rate Elasticity, we can help you lift your Conversion Rate by a statistically significant amount. Ask us how to help you calculate your potential ROI from a Conversion Optimization strategy.