What Is Conversion Rate Optimization?
Conversion Rate Optimization (CRO) is a structured and systematic approach to improving the performance of your website by which you increase the percentage of your website visitors who take a desired action on your website.
It means optimizing your website so that a greater proportion of your traffic finds it useful and informative and does what you want them to do. Conversion rate is the single most important metric to determine digital marketing success in today’s world.
Picture below explains what conversion funnels are — that is, steps the visitor takes in order to become a customer.
Conversion rate optimization is finding out why visitors aren’t converting and fixing it. A lot of people forget about it and lose a lot of money as a result.
What is the value of Conversion Rate Optimization?
As you can probably imagine, conversion rate optimization is important because it generates more sales for the same amount of traffic you’re currently receiving. Instead of sinking additional money into PPC ads or other digital marketing methods to drive more traffic, you’re more efficiently convert your current traffic into leads or sales. And if you do decide to drive more traffic, your CRO improvements mean you’ll get more out of your increased marketing efforts.
What you need to remember is that a scientific approach to testing is the only way to know with a high level of certainty whether or not a new version is impacting revenue.
There are a few ways to improve your odds for successful CRO improvements.
You can look at your analytics data and combine it with qualitative behavioral user data — Session Replays. We’ve created a session replay tool for conversion rate experts that tracks how users interact with a website or a web application. This helps you turn user behavior insights into action in a way that charts and graphs could never support.
What are the steps of a conversion optimization process?
Conversion rate optimization process boils down to 5 steps:
- Research and analysis: With conversion rate optimization, you evaluate your website’s sales funnel to identify ways of improvement in order to get a higher percentage of people to sign up for your product or service.
- Search for solutions: Next, you come up with a hypothesis to test. When you’ve got all the data, prepare a list of all the usability issues (can’t buy) and the objections (won’t buy). Highlight the ones that come up most often, or that you think can have a big impact.
- Testing: You create a new version of a web page or landing page to test against your current version to see which one is more effective at getting visitors to sign up or buy.
- Review and optimization: In the end, you implement the variation that convinces the highest percentage of people to buy what you’re selling.
- Repeat: The process works in a cycle. After a few rounds of testing, repeat all or part of stage one (research and analysis). Follow this process and you’ll quickly — and reliably — increase your conversion rate.
Testing (step 3) is the key factor when it comes to CRO. Without testing, you’re left relying on your gut instinct to determine what will be more effective, but once you test, you know right away whether a change leads to an increase or decrease in conversions. It takes the guesswork out of knowing what you should say and how you should design a new web page.
The number of tests you can eventually run are endless. You can test different headlines, new value propositions, varying button colors, different call-to-action copy, and much more.
Each change has the opportunity to impact conversions, and small wins add up over time.
Ps. We’ve created a session replay tool for conversion rate experts that tracks how users interact with a website or a web application.