The conversion rate optimization market size in 2022 is huge and it is projected that CRO will be worth $36 billion next year.
Right now, conversion rate optimization software and services make up about 7% of the CRO market size.
And this number will likely grow as more people become aware of conversion rate optimization strategies and tools available to them.
Many enterprise companies are actively investing in AI and the analysis of Big Data.
The AI is able to spot correlations and make predictions about what will get them the most growth.
So why should you care about the market size of conversion rate optimization?
Here’s what you’ll learn about the conversion rate optimization market size in 2022:
- What is conversion rate optimization?
- Does conversion rate optimization work?
- How many companies use CRO?
- What type of conversions do companies focus on?
- Conversion rate optimization market scope and estimation
- Visual Website Optimizer
- Instapage and Unbounce
What is conversion rate optimization?
If you’re wondering what conversion rate optimization is, then this section is for you:
Conversion rate optimization (CRO for short) is the process of making changes to a website or app to increase its ability to get more visitors to do what you need them to do.
Sometimes simple things like the colour of a button, a faster website or different page titles make a massive difference in conversions.
In some cases more complex alterations like changing webpage layouts and navigation menus are needed.
Throughout this process, a conversion rate expert will keep a close eye on your website’s analytical data.
This is because data tells them what CRO tests are working and which ones aren’t.
This process results in an optimized (and sometimes personalised) website that converts more visitors into sales and leads.
Does Conversion Rate Optimization Work?
(You can view this video on YouTube here: Landing Page Breakdown: How to Use Images to Boost Conversion Rates)
In 2011 MarketingSherpa conducted a benchmark report on conversion rate optimization.
They found that 79% of marketers feel that increasing their website conversion rates will have the biggest impact on company growth.
Forrester also published an industry survey.
They that found the average company gets 50% more sales when they routinely run CRO tests.
Forrester also surveyed 4,000 e-commerce stores and found that consistent CRO tests lead to a 16% higher conversion rate when compared to those that don’t.
iProspect, Blueback and Global Web Index conducted research on the CRO strategy of household brands such as Microsoft, Unilever, Sony Music and eBay.
They found that most businesses are interested in growing their conversion rates and are actively investing in data science and conversion rate optimization.
Additionally, out of 949 senior marketers surveyed 45% plan to increase their budget in CRO experiments.
It’s also important to note that in previous years mobile users was a segment of traffic that was largely neglected.
While mobile users tend to have lower conversion rates than desktop users, successful CRO tests often lead to this segment being just as likely to convert as desktop users are.
Therefore, it is clear that the growing market size of conversion rate optimization is because businesses are able to increase their profit margins by:
- Getting more sales from desktop and mobile users
- Reduce costs associated with acquiring new customers
- Higher average order values
- Larger customer lifetime value
- Positive ROI and faster growth
How many companies use CRO?
Conversion Rate Optimisation (CRO) market size is continually growing.
Businesses around the world including eBay, Amazon, Groupon, Adobe and Google have adopted these strategies and techniques.
Industry surveys have found that when compared to startups or newly formed businesses, companies that have existed for 10 years or more has a higher chance of using CRO.
One possible explanation is that established companies know what works best for getting new customers.
This means that they have a need for optimizing their pre-existing sales funnels to boost sales, increase their average order values and grow their customer lifetime value.
However, the rise in AI and low-cost tools means that any business of any size can actively optimize their website’s sales funnels for a minimal cost.
What type of conversion do most companies focus on?
(Watch this video on YouTube here: Possibly The Best Landing Page Tutorial You’ll See in 2022)
There are many different types of things that companies want their website visitors to do and these conversions happen at different stages of their sales funnel.
Most companies choose to convert visitors into email subscribers
Webform conversions are arguably the most common type of conversion that B2B and B2C companies focus on.
For example, you may want to collect email addresses from prospects and leads so you can market products and services directly to them via newsletters and drip campaigns.
A common method of collecting email addresses is a lead gen landing page.
These landing pages are designed to exchange a person’s email address for a free resource such as a GDPR checklist or data management guide like this:
Conversion Rate Optimization Market Scope and Market Size Estimation
As previously mentioned, conversion rate optimization software and services make up about 7% of the CRO market share.
This number will likely grow as more people become aware of what CRO is and the many tools available to help them understand their users and run a/b tests.
There are many different types of CRO software available on the market – both free and paid versions.
The most popular options include:
Visual Website Optimizer (VWO)
Visual Website Optimizer is a tool that allows companies to test multiple variations of web pages simultaneously without having to require a developer.
You can also integrate VWO with other tools such as Google Analytics. This will allow you to track how visitors behave on each page including what actions get them to convert into customers.
Instapage or Unbounce
(View this video on YouTube here: How to Make A Landing Page That Converts – Conversion Rate Optimization Tips)
Instapage and Unbounce are popular landing page builders among marketers and website owners.
Both platforms allow you to create and test landing page variations with a drag and drop builder.
Unbounce recently upgraded its product with an AI-driven landing page design tool called Smart Builder.
The user provides some basic information about what the landing page will be about and the tool designs it for them.
However, Unbounce’s Smart Builder is still in its infancy meaning that the level of customisation is lacking.
Both Unbounce and Instapage include features such as A/B testing functionality similar to that of VWO.
It’s worth pointing out that VWO allows you to run split tests of existing web pages.
However, Instapage and Unbounce only allow you to run split tests of landing pages that you have been created using their builders.