What is Conversion Rate Optimization and Why Is It Important?
If you find the process of conversion rate optimization complicated or know little about it, you’re at the right place. Here, in this post, you’ll get to know what exactly CRO is and why you should care about it.
As a digital marketing professional or business owner, your marketing efforts are structured to drive traffic toward your website and convert it into leads. Your focus is to generate more traffic and that’s where conversion rate optimization (CRO) comes in.
As a visitor, do you prefer a website that isn’t meeting your purpose? Obviously, you’ll quickly move away from a website that is either difficult to navigate or doesn’t provide relevant information/ products. This means the functionality and usefulness of a website plays a fundamental role in retaining the audience. And to achieve this goal, conversion rate optimization is the right way. To understand what conversion rate optimization means, we need to know the meaning of each word here. So, let’s get started!
What is a Conversion?
To understand CRO, first, you should know what exactly conversion means. Conversion basically denotes a visitor who completes the site goal. The goal can be anything and we usually categorize it into primary and secondary goals. The primary goal, also known as ‘Macro Conversion’ is to sell a product or service. Often before achieving this macro conversion, you will get some micro conversions, such as signing up to receive emails or creating an account.
What is a Conversion Rate?
Now come to the conversion rate. In the simplest words, the conversion rate is the percentage of visitors who take the desired action. As mentioned above, the goal or desired action can take many forms- the sale of products, membership registrations, newsletter subscriptions, software downloads, etc. The conversion rate of a website is the number of times a user completes a goal divided by your site traffic. A high conversion rate means your marketing and web design efforts are going in the right direction and people want what you’re offering. It’s possible to find out the conversion rate of ad clicks, blog posts, websites, and landing pages. To calculate your conversion rate, you need to divide the number of conversions a webpage generated by the number of people who visited that page.
What is Conversion Rate Optimization?
Hopefully, by now you’ve understood what conversion and conversion rate means. Now, let’s move to conversion rate optimization (CRO). The systematic process used for increasing the percentage of website visitors who take the desired action is known as conversion rate optimization. This desired action can be anything such as purchasing a product/service, filling out a form, subscribing to your blog or newsletter, requesting a quote, downloading a whitepaper, or creating an account.
This process not only includes finding out how and what actions visitors are taking but it also involve figuring out what’s stopping them from completing your goals. This should not be confused with the conversion optimization for SEO or paid ads. Here you design and modify your website so that the site visitors convert into a lead. CRO is the practice used for helping visitors to take action when they visit a website. Such conversions take place all over the website, that is, on the homepage, pricing page, blog, and landing pages. This means all the pages are to be optimized for a higher number of conversions. The process of CRO involves using analytics and user feedback to improve the performance of a website. On the basis of KPI you want to improve, the CRO can take various different forms.
But how you can determine if you’re actually increasing the conversion rate of your website? To measure the conversions on your website, set up the conversion funnel in the Google analytics and start analyzing your past and present data. You need to take a few things into account such as the quality of content, user-friendliness of the web design, right coding structure, and features that builds credibility like testimonials, trust marks etc. Tools like Google Analytics, Google Pagespeed Insights, HubSpot, Adobe Analytics, KISSMetrics, and ClickTale can be used for CRO.
Why Conversion Rate Optimization is Important?
The aim of a sales and marketing team is not only to attract a large volume of visitors to the website but also to convert those visitors into leads. To achieve this goal, you need to consider CRO to make the most out of your existing website traffic. Here’s why your business needs a CRO strategy:
- With the help of CRO, you will be able to understand how users move through your site, what actions they take, and what’s preventing them from taking any action.
- Another benefit of CRO is getting better ROI. When you achieve a high conversion rate, it results in improving your return on the investment that you made for generating traffic to your site.
- CRO is a comparatively more cost-effective way of finding new visitors. This is because rather than attracting more visitors, CRO helps to convert a higher percentage of the visitors you already have.
- With the help of CRO, you can collect data, make a hypothesis, create a functional design, measure which version outperforms the other, and implement the winning variation.
- CRO tells you what intrigues and urges your visitors and what they may find unappealing. With the help of this information, you can give your audience what they really want. You’ll be in a better position to figure out the right ways and required changes. You can source data from multiple sources such as Google Analytics to guide your testing, surveys, feedback from customers, heat mapping, user testing, and more resources to identify your loopholes.
- The CRO strategy can also help you work efficiently, as well as save your time, effort, money, and most importantly, users. This will ultimately give you a competitive edge in your industry because you’ve optimized your website in a way that visitors get what they need to make decisions faster or easier.
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