What is Conversion Rate Optimization?
With one of the fastest, and highly effective methodologies available today, Conversion Rate Optimization turns on hand web traffic to customers who pay.
CRO employs various strategies and tools and converts your visitors into leads, who later turn into your customers. The conflict between different statistics about CRO is yet to resolve. Some companies claim to have had a better experience with short-form landing pages. At the same time, stats from another study indicate that conversions were increased by 220 percent when using long-form landing pages. Approximately seventy-five percent of businesses talk about a real struggle in finding experts who can assist them in their landing pages. With so many figures clashing around this topic, accepting how and why to understand CRO is important. CRO has undoubtedly become an essential part of succeeding in business.
This article intends to brief you with some things that you should know about CRO, from its definitions to its testing options.
What Is Conversion Rate Optimization (CRO)?
In short, conversion rate optimization aims to increase the percentage of visitors to your website that converts there.
Let’s understand this with an example. Someone who has a thirty percent conversion rate has thirty percent of people who have converted upon visiting their website. Think of it as a retail store.
The process of conversion optimization reduces the friction in your funnel while enhancing your offer’s value.
What Is Conversion Rate (CRO) and How Do You Calculate It?
CRO should be looked at as a ratio, which tells you the percentage of visitors to your website who truly convert. So if you divide your total transactions by the total site visits and multiply it by 100, you’ll get the simple equation at play. Say, three thousand visitors, out of the total one hundred thousand people who visited your website in the past month, actually purchased a product. We’ll put the numbers in this equation and find out that the conversion rate is around three percent. Had 5,000 people converted, your conversion rate would have jumped to a five percent.
Common conversion actions you likely have on your website would include demo requests, clicking as ad, purchase, trial account signup, free account signup, or becoming a subscriber to emails. These are your primary conversion goals, also known as macro conversions. They are the key goals of your whole site. You could also have micro-conversions for your sight. Micro conversions are the little steps taken by visitors, which leads them to the larger conversion goal. These would include viewing specific pages, social media shares, saving products in a shopping cart, watching videos, or downloading PDFs.
Macro conversion or primary goals tend to be the subject when talking about your overall conversion rate.
The Biggest Benefit of Conversion Rate Optimization
So what is the effect of a better conversion rate? Simply put, you’ll get a higher number of customers from the same traffic you had previously.
Certainly, this is big news for most of the businesses. Maintaining traffic volume usually requires you to have a monthly marketing budget. Paid, or content marketing, you’ll have to pay for traffic.
However, with the same money, you can get more customers –with better conversion optimization. Multiple benefits will follow.
- You’ll get more profit with each customer
- With the same marketing budget that gets more customers, the cost of customer acquisition for each customer will lower down.
- You’ll get more to invest in your business, which is fundamental for your growth. With each month giving higher profit, you’ll get the opportunity to grow your business faster. You can also take out more profit out of your business.
A month, or even a few weeks, spent on CRO opens the door to some of the greatest steps for your business.
Understanding the Parts of Conversion Optimization
Before taking out time to work on CRO, it’s better to understand all its moving parts.
- Conversion funnel – this refers to the series of steps on site that people need to take for completing the primary of goal of your site.
- Call to action (CTA) – this part tells your visitors precisely what they must do next.
- A/B testing – it’s a practice validating conversion improvements. Multiple versions of your site (mostly two) are shown to the visitors, and the effectiveness of both the versions in comparison to each other is measured.
- Usability – this part refers to the practices and processesprocesse that make your site user-friendly. Like, removal of friction in your site will increase conversions.
- Multivariate testing (MVT) – like A/B testing, MVT tests several variables simultaneously.
- Customer development – this refers to the processes and tools used to understand the customers better. With the customers and their preference in mind, it is easier to design websites that will convert a higher percentage of visitors.
- User recordings – this is a tool that gives a lot of feedback by recording users while moving through your site. This tool tells the points at which people got stuck and where they had intended to go. You can get a lot of ideas for increasing conversions from this part.
- Analytics – analytics measures visitors and users. A crucial piece in improving conversion rates, measurement, and analytics becomes important for growing business.
- Heatmaps – a sort of report showing where users clicked on any page, using ‘hot colors’ and ‘cold colors.’ Heatmaps are an excellent tool to improve conversion rates.
SEO vs. Conversion Rate Optimization: Should You Focus on Increasing Traffic or Converting your Existing Traffic?
Most of us want to run the best company, and for it, also the best site. You’ll jump to local SEO or traditional SEO, depending on the kind of business you’re doing, work hard with google analytics, and toil for a better conversion rate. While doing all of this, you might wonder –should you even be focusing on SEO, or should you stick with your existing traffic?
While SEO and conversion rate might look like they go hand in hand, there are differences we must remember. Search Engine Optimization, or SEO, is designed for attracting more traffic. Conversion rate optimization (CRO), on the other hand, is a methodology that aims at optimizing the content for the already existing traffic.
One should not be confused by which of these matters more, since the question is misleading. It would be best if you had both of them. You need SEO for getting traffic to begin with, and CRO to get more sales from that traffic. Both SEO and CRO have equal importance.
Once you get a decent baseline for search engine optimization, you’ll most likely move towards CRO. Which will work, and you’ll get higher sales after a few months. What’s the next step, though? Certainly, you’re not planning to stop at this.
Well, you’ll start with SEO again to get even more traffic to your site. And then get more conversions with CRO. Do you see the cycle? So to answer the question –there is no v/s. Both SEO and CRO are necessary for a successful business.