What is Conversion Rate Optimization (CRO) and Why Is It Important?

Conversion Rate Optimization

Conversion rate optimization is a promoting advancement measure that follows a structure to expand the level of guests who complete a site’s objective. Conversion optimization investigates the conduct of guests and spotlights on what inspires a specific market portion to participate with a specific goal in mind with explicit showcasing components.

Conversion Rate Optimization is centered around convincing a greater amount of your site guests to make the ideal move you need them to take on a page, site or inside a mission.

The right Conversion Rate Optimization philosophy can give mind boggling results, yet you’ll be similarly as astounded by the interaction to accomplish these outcomes through the reality based, information driven logical methodology we will bring to you in this aide.

At a very high level, the CRO process involves:

  1. Conducting a heuristic evaluation for the site
  2. Conducting qualitative research and user behavior analysis
  3. Conducting quantitative research
  4. Conducting competitive analysis
  5. Prioritizing problem areas on the site and creating and conversion roadmap for your website (what pages need to be fixed)
  6. Creating a testing hypothesis
  7. Creating new designs based on the testing hypothesis
  8. Conducting AB Testing (or multivariate testing)
  9. Analyzing the testing results

As you read through the different chapters in this guide, you will learn about each of these steps in depth.

Let’s start with basic definitions for online conversion rate and conversion rate optimization.

What is Online Conversion Rate?

Conversion rate is the level of guests who complete an ideal activity on a site, during a time-frame. Any significant commitment your guests make the most of may as an ideal activity, as long as it satisfies your page’s objective. Keep in mind, each page ought to have an essential objective.

By estimating conversion rates , you see whether your pages are convincing guests to make the move you need them to take on the page. The higher the conversion rates, the better your plan and duplicate are contacting qualified possibilities.

There are numerous objectives, conversion rates, that you can follow on your website.

If you are an ecommerce website, your website conversion rate is the number of monthly orders your receive divided by the number of visitors that come to your website.

At the same time, each page on your website has at least two conversion rates (if not more).

Let’s take your product pages on an ecommerce website, the goal from these pages it get visitors to click on “the add to cart” button. And of course, the final goal is to get these visitors to place an order (convert on the website). So, product pages have two conversion goals:

  1. Micro conversion rate for product pages is total clicks on the “add to cart” button divided by the number of visitors who visit the product pages.
  2. Macro conversion rate for product pages is total orders for the website divided by the number of visitors who visit the product pages.

In numbers, you need to determine a period and account for the total numbers of visitors and desired actions they took in this same period. Let’s say your e-commerce receives 200,000 visitors in one month and processes 20,000 orders in the same period.

Your website conversion rate  = 20,000/200,000 = 10%.

Of those 200,000 visitors, only 50,000 make it all the way to the product pages. Of these 50,000 visitors, 10,000 visitors click on the “add to cart” button.

  1. Product pages micro conversion rate  = 10,000/50,000 = 20%.
  2. Product pages macro conversion rate  = 20,000/50,000 = 40%

The same concept applies if you are SaaS website. Your website conversion rate is the total number of monthly subscriptions divided by the total website monthly visitors. The SaaS pricing page, where you list the different plans for your product, has two conversion rates:

  1. SaaS pricing page micro conversion rate: total number of visitors to click on the “subscribe” button on the page divided by the number of visitors who visit the pricing page.
  2. SaaS pricing page macro conversion rate: total number of visitors who “subscribe”  divided by the number of visitors who visit the pricing page.

Let’s say that your SaaS website gets 20,000 visitors per month and generates 500 subscriptions.

Your website conversion rate  = 500/20,000 = 2.5%.

Of those 20,000 visitors, only 1,000 make it to the pricing page and of these 1,000 visitors, 750 click on the subscribe button.

Your pricing page conversion rate is = 750/1,000 = 75%. 

  1. SaaS pricing page micro conversion rate =  750/1,000 = 75%.
  2. SaaS pricing page macro conversion rate = 500/1,000 = 50%

So, what is Conversion Testing?

Conversion Testing is the way toward leading an AB or multivariate test to build the site conversion rate.

An iterative interaction naturally, CRO helps you in making presumptions about your site guests and afterward testing these suppositions to quantify how your market really reacts.

As a drawn out measure, CRO accomplishes supportable, repeatable, and predictable increments on conversion rates through investigating, testing, and examining guests’ practices on your site. A decent CRO program expands your site’s income month to month, arriving at huge aggregate yearly development.

The most awesome thing? This outcome upgrades your present site traffic. More conversions, without the need of expanding site traffic.

The yearly elevate in benefits alone could ought to legitimize a CRO program execution.

CRO is also not for you if you don’t set the right expectations. Don’t expect to change the color of a button and instantly receive more orders, forever. It is not going to happen overnight. You won’t set up a test or two and immediately achieve a permanent monthly uplift. CRO is a process to enable data-driven choices to increase conversions. No guesswork. No magic.

CRO is a culminating feature to your overall marketing strategy.

Summing up, CRO is

  • a system to increase the percentage of visitors who take the desired actions of a webpage
  • data-driven and focused on results
  • researching, testing, and analyzing visitors’ behaviors on your website
  • a way of discovering more about your visitors and customers
  • a new mindset
  • a long-term commitment

CRO is not

  • guesswork
  • magic
  • for you, if you think you know everything about your customers
  • for you, if you don’t set the right expectations

What is a Long-term Commitment in a CRO Program?

In the event that ‘long term’ has been referenced too often as of now and began frequenting your arrangements of increasing conversions, check the short video beneath. You’ll comprehend that you may see introductory elevates, however the drawn out obligation to CRO will help you keep on acquiring expands extra time, always failing to think twice with your guests.

Why Bringing More Traffic Works?

There is no questioning the reality. Expect your present site just believers 2% of its traffic to clients or leads. On the off chance that you can keep a similar conversion rate when more potential clients visit your site, multiplying your present site traffic will twofold your income.

In any event, that is the hypothesis.

You need to two or three things when attempting to procure new traffic. You should keep up with a similar nature of traffic when carrying new guests to your site. On the off chance that you simply draw in any rush hour gridlock to your site, you can seriously bring down your conversion rate.

Is it true that you are ready to keep up with a similar quality traffic? That will rely upon what you are as of now doing as far as traffic age. In the event that you are now positioning in the best three for a large portion of your key terms, both naturally and in paid, obtaining new traffic may require your attention on conceivable more extensive new terms. All things considered, you risk going through cash in SEO and PPC and not seeing prompt outcomes from that venture.