Internet Marketing, SEO, Tutorials,
How Conversion Rate Optimization (CRO) Works? – CRO Testing Tips
December 15, 2016 Rajat Tyagi
Conversion Rate Optimization is the process of ensuring that the visitors on your website are directed towards a particular task that you want them to perform. However, simply directing a visitor to a task is not conversion rate optimization, which essentially indicates that there is more than meets the eye as far as this process is concerned. When executed seamlessly, the process of CRO can help you to increase your revenue and your professional goals by enabling you to manifest your intentions in the digital space. Are you ready to learn the art of digital manifestation?
To explain this, let us re-visit a common behavior we all exhibit. Have you observed your habit of visiting at least a dozen websites before finally opting to shop from the one that appealed to you the most? The reason for the appeal can vary widely, from web design, ease of navigation, content, to prices and shopping cart experience as far as e-commerce websites are concerned. So, if we go back and look at the entire thought process behind this behavior, we would realize that conversion rate, i.e., converting a visitor into a dedicated customer, is one of the most critical parameters that determine the success of a website or app.
Conversion rate optimization is about understanding and subsequently, influencing the pattern and behavior of the visitors on a particular page app. It is about trying to get the visitors to perform the actions that you have set as your goals. These actions can vary from aspects such as liking a page, registering on your website, subscribing to the mailing list, downloading an app, becoming a paid member, ordering a particular product, etc.
How Does Conversion Rate Optimization (CRO) Works?
Conversion Rate Optimization (CRO) is similar to practicing a martial art or training yourself for that back-flip that you always wanted to do. It starts with intense study, where you learn from successful cases of conversion and understand the behavioral patterns that successful website owners took advantage of. After doing your research, you can start your own experimentation by looking at the feedback that your website receives from its visitors. Prior to this, you can start using analytics to understands which elements need to be changed and altered on your website to ensure that of visitors do not have a hard time becoming full-time customers.
A crucial point to understand here is that the objective of Conversion rate optimization (CRO) is not about increasing the traffic, rather increase the number of visitors who ultimately become loyal customers.
How is Conversion Rate Optimization Measured?
In order to measure the effectiveness of the conversion rate optimization techniques, advanced big data analytics is a preferred tool. The effectiveness is measured in terms of several metrics. Some of them are as follows:
- Total Conversions – It is the total number of visitor who performed the desired action, be it, making a purchase, or, clicking the desired link.
- Conversion Rate – Simply speaking, it is the percentage of visitors who performed desired action. It is calculated by dividing the number of conversions by the total number of visitors.
- Bounce Rate – This represents the percentage of people who could not find the desired information they needed from your site. This figure is measured by calculating the number of visitors who left your website without performing any action or without even exploring it for more than 4-5 minutes. This number should be as low as possible if you want to move towards a high conversion website.
- Average Time on Site – This metric measures the level of engagement of a visitor. It measures the average duration that a visitor spends on your website. The higher the average time spent on the website, better the prospect of achieving higher conversion rates.
- Average Page Views – This is also an engagement measurement metric. This number essentially signifies the number of pages a visitor traveled to on your website before exiting it. The higher the number, the more engaging your website is.
Why is Conversion Important?
Well, that is the easiest thing to understand. Obviously, without conversion, there would hardly be any revenue, and, your goals would remain a distant dream.
What are the Benefits of Conversion rate optimization (CRO)?
Conversion rate optimization is beneficial in following ways:
- A high conversion rate means a better return on investment (ROI).
- CRO also helps in getting the right customers and in focusing on their needs
- CRO can further help in return on investment (ROI) by reducing advertisement costs
- CRO is a powerful tool for ensuring focus on elements such as landing page optimization and website optimization in general
- It lowers customer acquisition costs
How can one achieve high degrees of Conversion Rate Optimization?
CRO involves fixing a strategy and consequently defining a hypothesis and a structure to test the hypothesis. Prior to this, the focus is shifted towards implementing the structure, and then measuring the performance through the same. Based on the reports or feedback garnered through the testing process, changes are made in the backend code and the process is repeated till fruition. The below image explains what a detailed CRO actually looks like.
CRO can be achieved by practicing some best practices such as focusing on landing page optimization by keeping catchy headlines, creating concise and effective content, and enhancing visual appeal. Website optimization is also an important part of CRO, in order to ensure user-friendliness through the implementation of a smooth and free flowing design as well as a powerful User Interface.
Now, it is up to you to make the choice.
Guest Author Bio: This article is written by our guest author Raj Gautam. He is CEO & Founder of QL Tech, Located in Perth, Australia, QL Tech is one of the best companies that offer unique Digital Marketing & Web Development Services by the virtue of its dedicated professionals. Our professionals are extremely proficient in offering Digital Marketing SEO services.
How do you calculate conversion rate optimization?
To measure the effectiveness of conversion rate optimization techniques, we use advanced big data analytics. The effectiveness is measured by serveral metrics such as conversion rate, total conversions, bounce rate, average time on site, and average page views.
Why is Conversion Rate Optimization Important?
Conversion rate optimization can help a web site make the most of its traffic. CRO allows you to lower your customer acquisition costs by getting more value from the visitors and users you already have. Even small improvements in conversion can mean a big jump in revenue! By optimizing your conversion rate you can increase revenue per visitor, acquire more customers, and grow your business quickly and without significant paid investment.
What is conversion rate in Digital Marketing?
Conversion rate is the percentage of visitors to a website that converts into customers, or more generally, takes any desired action on a webpage.
Conversion Rate = Number of Goal Achievements / Visitors
What is a good conversion rate?
A good conversion rate varies across businesses and industries. According to a study by Search Engine Land, the average landing page conversion rate is 2.35%. However, the top 10% of landing pages in each industry perform almost 3-5x better than the average.
How do I optimize my website conversion rate?
Conversion Optimization starts with gathering data and insight about your customers and visitors through your CRM, Google Analytics, surveys, heatmaps, or any other tool. Based on these insights, you can tweak your landing pages to be more effective, add strong CTAs, conduct A/B tests, optimise your funnel and much more.
Is conversion optimization an iterative process?
Yes, conversion optimization is an iterative process. You must run multiple experiments and A/B tests for a period of time to determine what will improve conversion rates and increase responses to CTAs.