Conversion Rate Optimization (CRO) is a digital marketing strategy for businesses to achieve higher profitability and user engagement from their online presence. This article will explore CRO, why and when businesses need it, the processes involved, and how to measure its success.
What is CRO?
Conversion Rate Optimization (CRO) is a strategic process aimed at increasing the percentage of website visitors who take specific, desired actions. These actions are called “conversions” because the business wants the site visitors to perform them. These actions could vary widely, from purchasing a product to signing up for a newsletter, filling out forms, or downloading resources. The purpose of CRO is to ensure that more users are performing the desired actions than they are doing now.
At its heart, CRO focuses on understanding how users interact with your website and optimizing their experience to enhance this conversion rate. The conversion rate is calculated using the simple formula:
Conversion Rate = (Number of Conversions Over a Period / Total Site Visitors Over the Same Period) × 100
For example, if 500 visitors enter your website within a specific week and 25 make a purchase, your weekly conversion rate stands at 5% ((25/100) x 100). The objective of CRO lies in its primary aim: to enhance this percentage and ultimately maximize the value of your existing traffic.
Why Do You Need CRO?
Every business with an online presence can benefit from CRO, but the timing and need for CRO vary depending on their goals and challenges. Here are some reasons you may need to consider CRO for your business.
- Increased ROI: CRO ensures businesses extract the maximum value from their existing traffic by converting more visitors into customers. It reduces dependency on costly acquisition campaigns like paid ads.
- Improved User Experience: CRO focuses on identifying user pain points and optimizing the journey to address those. Happier users are more likely to return and recommend the site.
- Competitive Edge: A streamlined, conversion-focused website outperforms competitors, especially in crowded markets.
- Data-Driven Decisions: CRO relies on analytics and user feedback to ensure optimization efforts are based on facts rather than guesswork.
- Global Reach: For businesses with international aspirations, CRO ensures that cultural and behavioral nuances are considered, helping to maximize conversions in diverse markets.
When Do You Need CRO?
Businesses should consider CRO at critical milestones of their digital journey or when facing challenges with their existing online presence. For example, a comprehensive CRO may be needed when:
- A website is experiencing technical issues such as high page load times, unexpected errors during form submissions or purchases, suboptimal navigation, a large number of broken links, and browser incompatibility issues.
- A website is failing to convert users even though it functions perfectly and attracts traffic. This could be due to a user registration process requiring too many steps, a purchaser being prompted to buy extra products during shopping cart checkouts, etc. CRO can identify these issues and implement solutions.
- A website has been redesigned with new structures, elements, and tools. CRO provides the opportunity to test and optimize new elements and ensure they perform better than the old ones.
- Launching campaigns for a new product or service. For example, before investing heavily in paid ads, a CRO exercise can examine and optimize the effectiveness of a landing page or entire new site areas related to that product or service.
- A business is experiencing flatlined, plateaued user acquisition on its website. This could be due to old, outdated content, a lack of call-to-actions, and many other factors. The CRO can unlock additional user acquisition opportunities by identifying content that’s no longer useful or difficult to navigate.
What Types of CROs are there?
CRO exercises can involve different parts of the user’s digital journey to conversion. Depending on the focus, there can be four types of CRO:
- Technical CRO fixes technical issues, such as slow load times, broken links, or compatibility problems, that may hinder conversions.
- On-site CRO improves website elements like navigation, forms, product pages, and checkout processes.
- Off-site CRO optimizes external touchpoints, such as email campaigns, social media ads, and landing pages, to drive qualified traffic.
- A behavioral CRO leverages user psychology and behavior pattern research to influence conversion. For example, adding urgency with “Limited Time Offer” banners or providing 10% off on the first purchase for mailing list subscriptions.
How to Implement CRO?
CRO is a multidisciplinary process that combines analytics, design, psychology, and user experience (UX). On a high level, its workflow involves the following:
Setting Goals
At the start of the CRO project, the team should identify one, or at most, two SMART goals. Without such guardrails, a project can easily exceed time and budget and reduce management’s trust in the initiative. Some examples of CRO SMART goals can be:
- Increase newsletter signups by 20% within three months.
- Reduce cart abandonment by 15% over six weeks.
- Improve mobile conversions by 10% in two months.
Funnel Analysis
Once the goal is set, the next step is to map the customer journey path to that conversion and identify current or potential drop-off points.
Taking the cart abandonment example above, where the team wants to reduce the cart abandonment rate by 15% over six weeks, it may identify that a typical purchaser journey involves the following:
Initial site visit > Product catalog browsing > Shopping cart review > User registration > Checkout.
The funnel analysis may premise that displaying a newsletter sign-up form on product pages within two seconds of entry is causing a high bounce rate. Similarly, not showing the included tax on the checkout page could cause users to abandon their carts because their expected total price and the displayed price differ.
User Behavior Analysis
With a broad understanding of where conversion may be getting affected, it’s time to know precisely how and where it gets lost. Tools like Google Analytics, Hotjar, and Crazy Egg can reveal how users interact with a website and identify bottlenecks and opportunities. Visual representations of user activity in heatmaps, like clicks, scrolls, and mouse movements, can help understand what’s capturing attention and what’s not. In our example case, it may be revealed that users spend more time on the checkout page near the total cost section and then abandon their carts.
On- and Off-site Optimization
At this stage, the actual optimization phase will begin. Depending on the results of all the previous analyses, this phase can involve a few or many steps to make the conversion effective. Here are some examples:
- Creating short, relevant, and clear content for each funnel page.
- Displaying personalized, tailored content for different audience segments.
- Highlight benefits, features, and comparisons on product pages.
- Include high-rated customer reviews, testimonials, and security badges to build trust.
- Making menus more intuitive and simple for easy navigation.
- Reducing scroll and load times of critical pages by removing unnecessary images and videos.
- Improving mobile device user experience through fewer screens, buttons, and scrolls.
- Reducing the number of fields in forms.
- Adopting persuasive call to action (CTA) through contrasting colors and actionable text and placing those at multiple points of the funnel.
- Optimizing the overall site structure by removing old content and merging and splitting sections of the site.
- Changing the placement of headings and banners using dynamic, personalised page titles, adding SEO-friendly meta descriptions and keywords, and removing bad backlinks.
- Optimizing landing pages to ensure key takeaways are “above the fold”.
- Sending abandon cart emails that encourage users to complete transactions,or requesting them to fill in short surveys.
- Running organic social media campaigns to point to the top of the funnel.
In general, companies can expect some quick wins through the following best practices:
- Understanding audience behavior through data.
- Focussing on user experience (UX).
- Prioritizing mobile optimization.
- Using compelling CTAs.
- Simplifying forms and checkout processes.
- Leveraging social proof.
- Increasing site speed.
- A/B testing regularly.
Testing CRO Changes
This involves checking how the site is doing against defined parameters and, if necessary, doing further optimizations. Some of the metrics to test against can be:
- Conversion Rate: This is the primary metric. It tracks the changes in the percentage of visitors completing the desired action (“conversion”). The team must first define what will be considered a “conversion” to test conversion. The conversion rate should be checked at the beginning of the exercise and then at the end to compare the results.
- Bounce Rate: A declining bounce rate often indicates improved engagement and relevance of content.
- Average Session Duration: Increasing time spent on-site or on specific pages suggests users find the content more engaging.
- Click-Through Rate (CTR): A higher CTR indicates success in capturing attention and prompting actions from CTAs, email links, or ads.
- Revenue Per Visitor (RPV): This metric evaluates how much revenue each visitor generates, tying CRO directly to profitability.
Other metrics can also exist, such as those associated with landing pages, multi-channel funnels, or e-commerce.
Another essential thing to consider is A/B testing. This involves testing two versions of a page or element to see which version is attracting more visitors or helping more conversions. Automated A/B testing tools can present different versions of the page or element to two distinct groups of users. For instance, does a red “Buy Now” button convert more than a green one? Does a short product description at the top of the funnel page result in more users adding that product to the cart? Based on the result, the team can decide which version to keep.
Tools like Google Analytics or Adobe Analytics can help measure such metrics.
Final Words
Investing in Conversion Rate Optimization is not just a smart move; it’s essential for businesses striving for continuing success in the digital realm. As you implement various strategies and types of CRO, remember that it’s not a one-time task but an ongoing process of refinement and improvement. You also need to know how to measure success. By understanding user behavior, addressing pain points, and continually refining the online experience, organizations can significantly improve visitors to customers.
Here at ProDataSkills, we not only build customers new websites but also help them unlock the hidden potential of their existing web presence through conversion rate optimization (CRO). Contact us to learn more about our CRO services.