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In which case the conversion rate optimization results in diminishing returns?

  • While increasing the conversion rate is generally desirable, it is possible to reach a point where additional improvements in the conversion rate will result in diminishing returns.
  • This is because there is always going to be a certain percentage of users that will not convert, regardless of how well the website or ad campaign is optimized.
  • Additionally, as conversion rates increase, the incremental gains from additional optimization will decrease.
  • This is not to say that one should stop trying to optimize the conversion rate but it's important to understand that conversion rate can have diminishing returns.