What is Conversion Rate Optimization (CRO)?

-Rohan Tiwary

Optimizing the conversion rate provides one of the easiest, most efficient methodologies for transforming the current web traffic into paying customers.

Conversion rate optimization, also known as CRO, can require various instruments and techniques, but they are all oriented towards the same thing:

Turning tourists into leads and leads into clients.

A lot of contradictory and illuminating details about CRO is out there. One research, for example, showed that the use of long-form landing pages improved conversions by 220%.

Some enterprises, though, think that short-form landing pages perform for their audiences better.

Likewise, about 75% of organisations who replied to another survey said they were failing to find experts to help them refine their landing pages.

Optimization of the success rate is the method of increasing the number of website users who convert to the domain.

If you have a 25 percent retention rate, for example, that means 25 percent of individuals who visit your website actually convert.

It’s kind of like getting a grocery store going. Many individuals may come in and shop, but some leave without actually buying money.

The optimization method for conversion focuses on two things:

• Reducing the funnel’s pressure
• Improving the importance of the bid

What Is Conversion Rate (CRO) and How Do You Calculate It?

Conversion rate is a ratio. It tells you what percentage of visitors to your website actually convert.

The equation is pretty simple:

Let’s say 100,000 people visited your website last month. Of those visitors, 3,000 bought a product.

Your conversion rate would be 3 percent (3,000/100,000*100).

If 10,000 people converted, your conversion rate would jump to 10 percent.

Depending on your site, you’ll usually have one of these conversion actions as your primary goal:

• Purchase
• Demo request
• Trial or free account signup
• Filling out a lead form
• Clicking an ad
• Becoming an email subscriber

This primary conversion goals are also called macro conversions. They’re the main goal of your entire site.

Your site might also have micro conversions, these are small steps that a visitor takes towards the larger conversion goal. They include things like social media shares, viewing specific pages, adding products to a shopping cart, downloading PDFs, watching videos, and that sort of thing.

We focus on the primary goal (the macro conversion) of the site when talking about the overall conversions rate.

The Biggest Benefit of Conversion Rate Optimization

Let’s look at the impact on ecommerce from having a better conversion rate.

For our fictional business, we’ll say that the company is selling just one product worth $300.

In our first calculation, we came up with a conversion rate of just 3 percent. Three thousand people bought the product, which produced gross revenue of $900,000.

That sounds great. But what if we boosted that conversion rate to our second equation, which quantified conversions at 10 percent?

In this case, revenue jumps to $3 million (10,000 people bought a product worth $300). Big difference, right?

Conversion rate optimization really comes down to one major benefit.

You’ll get more customers from the same amount of traffic.

This has a huge impact on most businesses.

You probably have a monthly marketing budget that you use to maintain your traffic volume. Maybe it’s in paid marketing, maybe it’s in content or social. Either way, traffic costs money.

Conversion optimization, after it’s live, gives you more customers from the same amount of money.

In turn, you’ll see several great changes in your business:

• The acquisition cost per customer will come down. When your marketing budget stays the same and you get more customers, each customer costs less to acquire.
• Your profit per customer goes up.
• With more profit every month, you can invest more to grow your business faster or take more profit out of your business.

Spending a few weeks or months on conversion optimization can unlock the next step in your business.

Conclusion

I’m a big fan of CRO and growth hacking.

Through conversion rate optimization, I’ve vastly improved my businesses’ conversion rates, and I’ve helped my clients do the same.

Sure, it takes work. But once you have the data, you can generate more sales and dominate your industry.

Start by understanding the definition of CRO and how it works. Focus on following the CRO best practices and avoiding the most common mistakes.