What Does Conversion Rate Optimization Mean, and Why Is It Important?
Conversion rate optimization, or CRO, involves implementing changes to your site to boost conversions. While monetary transactions are the most visible form of conversion, even advancing a visitor to the next stage of the sales funnel or collecting contact information counts.
What Are CRO Tools?
Conversion rate optimization (CRO) tools track user behavior on your site to help you learn about your visitors' experiences and find areas for improvement.
With the help of conversion rate optimization tools, you can:
- Find out why your website traffic isn't resulting in any leads or sales.
- Find out what could be improved on your website to boost sales.
- Optimize your site for maximum conversions by testing various elements.
There Are Three Primary Types of CRO Tools:
- Web analytics CRO tools: allows you to know and analyze website activity.
- Behavior analytics CRO tools: know your website visitor behavior
- CRO testing tools: compare, measure and optimize your website
Lots of different conversion rate optimization tools exist, such as:
- Google Analytics (and GA 360)
- Adobe Analytics
- Crazy Egg
- Google Optimize
- VWO Testing
What Is a CRO Strategy?
CRO, or conversion rate optimization, refers to the process of continuous testing and implementing changes to your website to enhance the visitor experience and increase conversions.
If you want to achieve such a massive objective, you'll need a well-defined conversion rate optimization strategy and plan of action for converting your website visitors into paying customers.
What Is A Conversion Rate?
The conversion rate is the proportion of users who take the desired action after clicking an ad or asset. The conversion rate is the proportion of site visitors who actually purchased out of the total number of site visitors.
The more people who convert after reading your content, the more effective the content is. When a user clicks on a CTA, this is known as a conversion in the marketing world. This could imply:
- Opening a message you've sent
- Completing a sign-up form on your site
- Purchasing an Item
Ideally, you'd like your marketing and customer-facing content to result in as many conversions as possible.
Calculating Your Conversion Rate
Finding out how effective your conversion rate is is simple. Simply divide the number of conversions by the total number of people who interacted with a specific piece of content. Use something like an email or a webpage on your website. Which number you use to divide to get the conversion rate for a specific content type is up to you.
Let's say that you just sent out an email campaign to 10,000 previous customers announcing the release of your new product. A total of 10,000 people were sent the email, but only 500 of them took the time to pre-order. If you divide 500 by 10,000, you get a 5% e-commerce conversion rate from that email.
What Is a Good Conversion Rate?
Your conversion rate is a measure of how well your content is received by the general public. Your website is 6% effective if it converts 6% of visitors into subscribers or buyers.
Here's the thing though: that's pretty fantastic. The "sweet spot" for conversion rates on websites spans between 2 and 5 percent, regardless of sector. The conversion rates used in different fields can vary even more widely.
Website performance is particularly poor in some industries, such as industrial equipment. While the average conversion rate is lower for some industries, others, such as those dealing in electronics or business services, tend to be quite high. If you want to know where you stand, it's best to do some research and avoid making inappropriate comparisons.
The Tactical Triangle
You can always count on the Tactical Triangle to guide you, and the 80/20 in its center will keep you focused on the areas where you can have the greatest impact.
According to the Triangle, to sell something, you must first attract traffic, then convert that traffic, and last, to be economically viable, you must earn a profit from the goods you offer.
This is why you started your business in the first place. You reinvest your earnings into expanding your traffic and conversion rates and refining your economics.
It continues in a continuous circle, moving clockwise. The cycle of traffic, conversion, and economics just keep on going.
In this example, we'll use Google advertisements as our source of traffic, a website sales page as our conversion point, and the sale of clothes as our economic driver:
Traffic: the number of viewers the ad gets (impressions)
Conversion: ad copy and clicks
Economics: offer price (cost per click)
The Tactical Triangle encompasses all aspects of marketing. And any change you're looking to make can be identified by responding to the question: "What is the most important area I need to focus on right now—traffic, conversion, or economics? You'll always be on the right track with that question.
Where to Implement a CRO Strategy
Here are four places on your website where conversion optimization can potentially have a significant impact.
Website homepages can benefit greatly from conversion rate optimization. Your homepage is where visitors land, so it needs to be engaging if you want to keep them around and encourage them to explore further.
You can do this in several ways, including by highlighting links to product information, providing a free signup button, or even incorporating a chatbot that solicits questions from visitors at any point during their browsing experience.
Many website visitors will decide whether or not to continue with a site based on its pricing page. Conversion rate optimization (CRO) can increase sales from a pricing page by:
- making changes to the pricing intervals (such as price-per-year vs. price-per-month)
- describing the features of the product for each price point
- providing a phone number to call for a price quote
- adding a simple pop-up form
When used properly, a blog can bring in a lot of potential customers for a website. A blog can use conversion rate optimization best practices to turn readers into leads in addition to publishing insightful and helpful content about your industry.
One way this is accomplished is by encouraging readers to submit their email addresses in exchange for a free ebook or industry report. Another blog conversion tactic is by adding CTAs (calls to action) strategically placed throughout articles.
The fact that landing pages have the highest average conversion rate of all signup forms, at 23%, is understandable, given that they are essentially made to encourage users to take action.
Optimizing a landing page for an event, for instance, with a video from the previous year can entice visitors to sign up for this year's event. Preview content from a free resource on a landing page can increase the likelihood that visitors will take advantage of the offer and download the full resource.