InsightsCRO4 min read
What a conversion lift is actually worth.
A worked example showing why lifting your conversion rate is often worth more than buying more traffic, and why the two together are worth more again.
When a business wants more sales, the first instinct is nearly always more traffic. More ad spend, more posts, another channel. It's the obvious lever, and it's usually the expensive one.
There's a second lever that gets far less attention: getting more of the visitors you already have to buy. We think it's underrated, and the easiest way to show why is some arithmetic.
The starting point
Say you run an online store with these numbers. They're made up, so swap in your own.
- 10,000 visitors a month, half of them from paid ads
- 2% of visitors buy, which is 200 orders
- Average order value of $150
- Monthly revenue of $30,000
- Paid visitors cost $1.20 each, so $6,000 a month in ad spend
You want another $9,000 a month, a 30% lift. There are two ways to get it.
Option one: buy more traffic
At the same conversion rate, 30% more revenue needs 30% more visitors. That's 3,000 extra a month, producing 60 extra orders.
If those visitors cost the same $1.20 each, that's $3,600 a month, every month. In practice they rarely cost the same. The cheapest and keenest audiences get reached first, so extra traffic tends to cost more and convert worse than what you already have. Call $3,600 the best case.
Over a year, that's $43,200 in extra spend. And the extra sales stop the month the spending does.
Option two: lift the conversion rate
Same 10,000 visitors. Lift conversion from 2% to 2.6% and you get 260 orders instead of 200. The same 60 extra orders, the same $9,000 a month.
The difference is what it costs. A conversion lift is mostly one-off work: research, design, development, testing. Once a clearer product page or a simpler checkout is live, it keeps working for every visitor after that, from every channel, with no extra cost per visit.
It also makes your existing ad spend go further. Your $6,000 used to buy 5,000 visitors and 100 orders, so $60 an order. At 2.6% the same spend produces 130 orders at about $46 each. Every campaign just got cheaper, and nobody touched the ad account.
Then they multiply
This is the part people miss. The two levers aren't alternatives. They multiply.
Lift conversion to 2.6% and then add the 3,000 visitors. That's 13,000 visitors and 338 orders, or $50,700 a month. Two 30% improvements haven't made 60%. They've made 69%.
Fix the bucket first. Then turn up the tap.
That's the case for doing conversion work before scaling spend: every dollar you put into traffic afterwards lands on a site that does more with it.
It isn't only theory, either. A CRO programme we ran for an outdoor adventure brand lifted conversion rate 4× and website revenue 177%. We wouldn't forecast that for anyone, but it shows how far the lever can move.
The honest caveats
- A lift isn't guaranteed. Plenty of tests lose. The move from 2% to 2.6% here is an illustration, not a promise.
- You need enough traffic to learn anything. With a few hundred visitors a month, testing takes forever, and traffic really is your first problem.
- Conversion rate alone can mislead. Discount everything by half and conversion will jump while profit falls through the floor. Watch revenue per visitor and margin alongside it.
What to do Monday
- Write down four numbers: monthly visitors, conversion rate, average order value and cost per paid visitor.
- Work out what a 10% lift in conversion rate is worth over a year, then what it would cost to buy the same revenue in traffic. Our free revenue calculator will do the sums if you'd rather skip the envelope.
- Go through your own checkout or enquiry form on your phone, the way a stranger would. Note every point where you hesitate.
- Fix the most obvious one before you raise the ad budget.
Most sites have at least one thing on that list. It's usually cheaper to fix than another month of clicks.