A Short & Sweet Guide to Conversion Rate Optimization
Most businesses, around the globe, today are shifting their focus to the online arena. What comes to your mind when you hear online? I bet it’s something related to “.com”. Simply put, you think of websites. So, websites are not only just a convention for companies, it’s a necessity. Let me rephrase myself. It’s mandatory. Web sites today are as important as the name of the company. Now, when we talk of websites, a lot of adjacent factors come into play. Mind you, all the factors are crucial while designing your company’s website. One of them is Conversion Rate Optimization or as we Digital Marketers call it CRO.
What is CRO?
Before we get into that, what is a conversion? A conversion happens when a visitor on your website performs a certain action that you want them to perform. Now then, what is CRO? Conversion Rate Optimization is the process of increasing the number of visitors to take the particular action that we want them to take. Conversions can be in the form of various activities such as filling out a form, subscribing to your blog, buying an eBook, downloading a checklist and the list goes on.
How do you calculate CR?
To calculate CR, you will need to divide the number of conversions divided by the total number of sessions over a given period of time. For example, suppose there were 1000 form fill ups over a period of 1 month. The total number of sessions over the same period of time is 20000. So, the CR should be (1000/20000 * 100) 5%. [P.S.: According to Google, “A session is a group of user interactions with your website that takes place within a given time frame. For example, a single session can contain multiple page views, events, social interactions, and ecommerce transactions.”]
Now, that you understand what is CR and CRO, let’s see why CRO is important for a business.
Why is CRO important for your online business?
This is a question that requires a valid answer. So, let’s look at numbers first.
• Companies typically spend $92 to bring customers to their site but only $1 to convert them. (Source: Eisenberg Holdings)
• Only about 22% of businesses are satisfied with their conversion rates. (Source: Econsultancy)
• 57% of B2B marketers say conversion rate is the most useful metric for analyzing landing page performance. (Source: Ascend2)
• Companies whose conversion rates improved last year are performing, on average, 50% more tests and using 47% more methods to improve conversion. (Source: Econsultancy)
• The average ROI on CRO tools is 223%. (Source: Venture Beat)
• 62% of marketers use CRO testing to boost lead generation on landing pages. (Source: Ascend2)
• Top converting companies spend more than 5% of their budgets on optimization. (Source: Adobe)
As you can see, CRO today is an essential aspect of every company. Companies are striving to increase their CR. With increasing conversation rates comes growth in revenue. So, you can’t afford to be complacent. I’ll list 3 reasons as to why you must concentrate on CRO:
1. You can’t rely on paid ads forever:
Paid Ads are cool. They give you guaranteed leads and many of them might convert to be your valuable customers. But, they’re getting costlier day-by-day which simply means you need to focus on growing organically and that obviously implies focus on CRO.
2. Your profit goes up:
Since CRO is essentially free, you are technically getting free customers. Just that, the CRO you’re performing on your website should be full proof.
3. People need to find things and fast:
The average visitor doesn’t have the attention span to wait and search for what they want. They need to find what they’re looking for within 2 seconds or they’re gone. CRO should ensure that doesn’t happen.
How to implement CRO?
Let us see a 4 step approach to implement a good CRO strategy on your website. Following these steps will lead you to implement successful Conversion Rate Optimization strategy on your website.
➢ Understand your requirement:
Your optimization would solely depend on your requirement. Misplacing text, wrong CTAs, idiotic offers, etc. can damage your website. For example, if you have a blogging website, one of your goals should be to increase the number of subscribers. So, a well-placed widget asking for your email Id and promising updates on latest articles would be the key to hook in visitors.
➢ Survey to the rescue:
Who is the best person to tell you what’s wrong with your website? The answer is your existing, loyal visitors. Only they can tell you what can be improved.
➢ Research & test:
Research on what the visitors are doing on your website, which parts are they visiting the most, etc. You will get an idea about which parts are needed to be modified the most.
After you’ve done your research, formulate a few strategies to optimize the website and test them against each other. The strategies can range from changing the color and text of CTAs, nature of offerings, a different website version altogether, etc. After a certain period of time, check the analytics report and figure out which one works best.
➢ Revenue-centric optimization:
Always keep in mind that your end goal is to increase revenue. Hence, your website should be optimized as per that aim. For example, on your ecommerce website, if the “Add to cart” option is not visible directly on the screen and it’s within another menu, you might potentially lose a customer since they don’t have the patience to go on and find out where that option is.
To conclude, CRO is a vital facet for any website. Businesses which are not considering this should wake up today! It’s a salient feature that every business should consider when going online.
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