This Is What Conversion Rate Optimization Actually Is
For any online business, getting more conversions, clicks, visits and reach is essential.
According to Econsultancy
If you are reading this, then chances are your business falls into this category.
This also means your business needs to focus on Conversion Rate Optimization, or CRO. Why?
Because Conversion Rate Optimization has brought about a change in today’s competitive digital market. Sites with a better CRO plan get an upper hand in providing an excellent user experience.
CRO is not just about ideas, dynamics, and experiments; it’s much more than that. Conversion Rate Optimization helps you discover the perfect combination of elements that will work best for your site and bring in more conversions.
What is CRO?
Conversion rate optimization is a scientific approach to increasing the percentage of visitors who turn into customers. It uses collected data, analytics and ideas to prepare a hypothesis on how to improve conversions. Then, you’ll use, A/B testing to prove your hypothesis and achieve your desired goals.
The aim is to bring in more revenue, and it can be used on any medium or platform where you expect to receive conversions from your customers.
CRO is a complex topic, but ultimately it only has one goal: to increase the conversion rate.
What Does Conversion Rate Mean?
Conversion rate refers to the percentage of visitors to your website who complete the desired action in a time period.
For example, let’s imagine a website is aiming to convert people through a specific product landing page. If that page gets 1,000 visitors in a month and 10 of those visitors make a purchase, the page’s conversion rate is 10%.
How Conversion Rate Optimization Tools Can Help
As the digital landscape began to grow in the early 2000s, website marketers began searching for ways to enhance the user experience and encourage more sales. This hustle led to new conversion rate optimization tools, opening the doors to CRO testing and analysis. Marketers began to play around with website design , content, visuals, and other elements to enhance their conversion rates.
According to Wordstream,
Let’s go back to the example from above. Imagine if the website that was focusing on that singular product page managed to use CRO tools to increase their conversion rate for that page from 10% to 15%. This would be an increase of conversions by 50%—likely a huge benefit for the bottom line.
Now imagine what would happen if a conversion rate optimization agency were to help the business analyze the rest of their product pages. The improvement in overall conversions could be astronomical.
What you need to get started with CRO
Like any good digital marketing effort, before you can begin, you need a plan or CRO strategy.
The first step is Data Collection, analyzing what you already know about your conversions on site. You need to examine:
- What is preventing conversions on site
- Which pages or elements will provide the most benefit if improved
You can start this analyzation process by looking into your Google Analytics. Look for pages that have high organic traffic or low bounce rates, but also aren’t performing as well in terms of conversions. You can also investigate customer behavior using CRO tools like heatmaps or Hotjar, among other useful tools.
Once you have a better understanding of where the issues and opportunities lie, you can go ahead and set the hypothesis. A hypothesis maybe something like:
Later, you will use CRO testing tools to verify your hypothesis and tweak it if need be.
Conversion Rate Optimization Best Practices
Typically, it’s best to enlist the support of a skilled CRO agency to help you improve conversion rate across your site. If that’s not an option now, you’ll need to come up with the hypothesis on your own.
Let’s look at some CRO best practices to help you get started.
Start With Your Top Landing Pages
In general, it’s best to optimize the pages with higher traffic first, as they will be a lot easier to analyze and will more clearly reflect major changes in conversion rate.
Many businesses choose to start with their homepage, but there may be other pages, like product or services landing pages, that have more opportunities. You’ll likely want to analyze more than one page, so at this stage, you are only looking for the top two or three pages to get the most out of your CRO testing plan.
- Around 61% of companies run 5 or fewer landing page tests per month. (Wordstream, 2017)
Setting Goals And Benchmarks
Once you know which pages hold the most opportunity, you need to decide what you want to achieve. Obviously, your end goal is more revenue. But how you will bring on the additional income will depend on a number of variables.
Rather than just looking for an increase in revenue, take a look at a few metrics that you could measure more effectively to see if your CRO testing plan is working.
For example, let’s say you’ve identified a landing page that gets a lot of traffic but doesn’t bring in many conversions. To help this page perform better, you could look to:
- Increase sign-ups on the landing page
- Improve time on page
- Increase return visits to the page
The goals could be totally different depending upon the type of site or app you are working with.
For example, your blog or news page will likely perform better with more clicks, shares, or email subscription.
On the other hand ECommerce CRO efforts should aim for revenue increases, so goals could be clicks, sales, sign-ups and “add to cart” clicks, reduce cart abandonment, etc. What matters most is what your site needs to achieve, specifically, so come into this part of your experimentation with an open mind.