Module: 9 Lead & Conversion Rate Optimization
In Digital Marketing, lead generation is the initiation of consumer interest or enquiry into products or services of a business. Leads can be created for purposes such as list building, e-newsletter list acquisition or for sales leads. The methods for generating leads typically fall under the umbrella of advertising, but may also include non-paid sources such as organic search engine results or referrals from existing customers.
Leads may come from various sources or activities, for example, digitally via the Internet, through personal referrals, through telephone calls either by the company or telemarketers, through advertisements, and events. A 2015 study found that 89% of respondents cited email as the most-used channel for generating leads, followed by content marketing, search engine, and finally events. A study from 2014 found that direct traffic, search engines, and web referrals were the three most popular online channels for lead generation, accounting for 93% of leads.
Online lead generation is an Internet marketing term that refers to the generation of prospective consumer interest or inquiry into a business’ products or services through the Internet. Leads, also known as contacts, can be generated for a variety of purposes: list building, e-newsletter list acquisition, building out reward programs, loyalty programs or for other member acquisition programs.
With the growth of social networking websites, social media is used by organizations and individuals to generate leads or gain business opportunities. Many companies actively participate on social networks including LinkedIn, Twitter and Facebook to find talent pools or market their new products and services.
Conversion Optimization, or conversion rate optimization (CRO) is a system for increasing the percentage of visitors to a website that converts into customers, or more generally, takes any desired action on a webpage. It is commonly referred to as CRO.
Online conversion rate optimization (or website optimization) was born out of the need for e-commerce marketers to improve their website’s performance in the aftermath of the dot-com bubble. As competition grew on the web during, website analysis tools and an awareness of website usability prompted internet marketers to produce measurables for their tactics and improve their website’s user experience.
New tools enabled internet marketers to experiment with website design and content variations to determine which layouts, copy text, offers, and images perform best. This form of optimization accelerated in 2007 with the introduction of the free Google Website Optimizer. Today optimization and conversion are key aspects of many digital marketing campaigns. A research study conducted among internet marketers in 2014, for example, showed that 59% of respondents thought that CRO was “crucial to their overall digital marketing strategy”.
Conversion rate optimization seeks to increase the percentage of website visitors that take a specific action (often submitting a web form, making a purchase, signing up for a trial, etc.) by methodically testing alternate versions of a page or process. In doing so, businesses are able to generate more leads or sales without investing more money on website traffic, hence increasing their marketing return on investment and overall profitability.
A conversion rate is defined as the percentage of visitors who complete a goal, as set by the site owner.
Conversion rate optimization is important because it allows you to lower your customer acquisition costs by getting more value from the visitors and users you already have. By optimizing your conversion rate you can increase revenue per visitor, acquire more customers, and grow your business.