What is Conversion Rate Optimization (CRO)?
Conversion rate optimization means getting more of your website visitors to do what you want them to do. Instead of just focusing on attracting more traffic to your site, CRO focuses on making the most of the traffic you already have.
Let’s say your website is a store. CRO is like rearranging the shelves, improving the checkout process, and training your staff to be more helpful. This is to encourage people to actually buy something.
CRO is the systematic process of increasing the percentage of website visitors who complete a desired action. This conversion could be anything from making a purchase or filling out a contact form to subscribing to a newsletter or downloading a piece of content. In short, you use data and feedback to understand what’s working and what’s not, and then you try out different changes to see what makes the biggest difference.
What is a Conversion Rate?
In terms of websites and online marketing, the conversion rate is the percentage of visitors who complete a desired action out of the total number of visitors. It indicates how effective your website is performing.
For example, if you have an e-commerce website and your goal is to sell products, a conversion would be a complete purchase. If 100 people visit your site and 10 of them make a purchase, your conversion rate would be 10% (10 purchases / 100 visitors x 100%).
However, conversions are not just limited to sales. They can be different actions depending on your business objectives. Some common examples are:
- Form submission: Filling out a contact form, lead generation form, or signup form.
- Downloads: Downloading a white paper, ebook, or software.
- Sign-ups: Creating an account or subscribing to a newsletter.
- Phone calls: Clicking a call button on a mobile website.
What is a Good Conversion Rate?
This is a question every website owner asks, and unfortunately, the answer is not a simple number. What’s considered a “good” conversion rate can vary depending on many factors, including:
- Your industry
- The type of conversion you are tracking (e.g., purchase vs. newsletter signup)
- Your target audience
- The source of your traffic.
However, we can consider some general benchmarks and averages. Generally, a conversion rate of 1-3% is often considered average. This means that for every 100 visitors to your website, 1 to 3 of them complete your desired action. Most businesses try to achieve conversion rates of 5% or higher, which is generally considered excellent.
According to recent data, industries like automotive, real estate, and travel often see higher average conversion rates, sometimes exceeding 3-4%. It happens due to the nature of their products or services and longer purchase consideration cycles. On the other hand, industries like B2C services or agencies can have lower average conversion rates, closer to 1-2%.
A good conversion rate for your specific business should be determined by examining your historical data, industry benchmarks, and business goals. Track your conversion rate over time and aim to increase it consistently through CRO efforts.
How to Calculate Conversion Rates?
It’s a fairly simple process, but there are some fundamental steps to understand your website’s performance.
The basic formula is:
Conversion Rate = (Number of Conversions / Total Number of Visitors) x 100%
Let’s understand this with a couple of examples:
- E-commerce Store:
- Suppose your online store had 500 visitors in a week.
- During that week, you had 25 sales.
- Your conversion rate would be: (25/500) x 100% = 5%
- Lead Generation Website:
- Your website received 1,000 visitors in a month.
- 50 visitors filled out your contact form.
- Your conversion rate would be: (50/1,000) x 100% = 5%
As you can see, the calculation is the same regardless of the type of conversion you are tracking. The key is to define what a conversion means for your specific website or business.
There are some important considerations:
- Time Period: You need to specify the time period you are analyzing (e.g., daily, weekly, monthly). It helps you track and identify any significant changes in your conversion rates over time.
- Unique Visitors vs. Sessions: Depending on your analytics tools, you can track either unique visitors (the number of distinct individuals visiting your site) or sessions (the total number of visits, including repeat visits from the same individual). Unique visitors give you a more accurate representation of your actual reach, and sessions can be used to understand user engagement.
- Micro-conversions: Apart from your primary conversion (e.g., purchase), you can also track micro-conversions, such as adding an item to a cart, viewing a product page, or signing up for a free trial.
Why is Conversion Rate Optimization Important?
CRO doesn’t only focus on attracting more visitors. It ensures that the visitors who come to your site take the right action. Now, there are various reasons why it’s an important factor to consider:
One of the most important reasons to invest in CRO is its ability to deliver a higher return on investment. If your website generates more conversions without increasing your advertising or marketing budget, your cost per acquisition decreases. Essentially, you are squeezing more value from the same marketing spend.
A well-optimized website doesn’t just convert better; it also provides an enjoyable and flawless user experience. CRO involves analyzing user behavior to identify pain points or friction in their journey. It addresses these issues, like slow-loading pages, unclear calls to action, or overly complicated checkout processes. This way, you boost conversions and improve customer satisfaction and loyalty.
Businesses that prioritize CRO have a competitive edge because they are continually improving their website’s effectiveness. CRO makes sure that your site is primed to capitalize on every visitor.
However, it relies heavily on data and testing to make decisions. Heatmaps, A/B testing, and analytics can provide insights into what works and what doesn’t on your website. This approach allows you to make strategic changes that drive results.
Conversion Rate Optimization (CRO) and SEO
Conversion rate optimization and search engine optimization might sound like two separate concepts, but they work hand in hand to help your website perform better. SEO brings people to your website, and CRO gets those visitors to take action. Let’s break it down:
- Bringing Traffic vs. Making Traffic Count
Consider SEO as a way to invite people to your store by improving its visibility in search engine results. They see your website on Google and click through to visit. CRO makes sure those visitors don’t just walk around aimlessly but actually buy something or do what you want them to do.
- A Better Experience for Everyone
Both CRO and SEO focus on creating a good experience for your visitors. Google ranks websites higher when they are easy to use, fast, and mobile-friendly. At the same time, CRO works to remove any frustrations people might face once they are on your site. For example, a page that loads quickly helps with SEO and also keeps visitors happy and more likely to take action.
- Lowering Bounce Rates
Have you ever clicked on a website and left within seconds because it wasn’t what you expected? That’s a bounce, and it’s bad for both SEO and CRO. If too many people bounce, search engines think your site isn’t helpful and lower your rankings. When your content matches what people are searching for and guides them toward what they need, CRO and SEO can work together to keep visitors engaged.
- Keywords That Do More
SEO gets visitors to your site by using the right keywords that people type into search engines. CRO takes it further by using those same keywords to make your calls to action clear and persuasive. For example, if someone searches for “affordable fitness plans,” you can use that phrase to guide them to sign up for your budget-friendly services.
The key is balance. According to some studies, aligning these efforts can make it 15 times more likely to grow revenue.
Where to Start with CRO?
To start with conversion rate optimization, you need to focus on the areas of your website that have the biggest potential impact. These are:
Homepage
Your homepage is the first thing most visitors see, so making a good impression is important. Now, when someone walks into your store, what do you want them to see? You probably want them to understand what you sell and why they should buy them. Your homepage should do the same. It needs to communicate your value proposition.
A call to action is also important. It guides them to the next step you want them to take. Using attractive visuals, like high-quality images and videos, can also grab attention and create a positive first impression.
Finally, navigating your website should be easy. If people can’t find what they are looking for, they will likely leave. And, of course, your homepage needs to look and function perfectly on mobile phones and tablets, as many people browse the web on these devices.
Product pages
If you are selling products online, your product pages are where the real action happens. These are the pages that directly influence sales, so optimizing them is important. A product page is a salesperson showcasing a product. You need to provide all the necessary information to convince someone to buy.
Start with excellent product images and videos. Show the product from different angles, highlight key features, and let people see it in action. Detailed product descriptions are also very important. Tell people everything they need to know, like dimensions, materials, benefits, and anything else that might influence their decision.
Pricing and availability are another important factor. Nobody wants to hunt for the price or find out an item is out of stock after they’ve decided they want it. Also, add social proof. Display customer reviews and testimonials to build trust and encourage purchases. Make adding to the cart and checking out as smooth and easy as possible. A complicated checkout process can lead to abandoned carts and lost sales.
Blog posts
Blog posts might not always give you immediate sales. But they are very important for attracting the right people and building genuine connections. You can provide essential information about your business or industry through your blogs and establish credibility.
Now, to make your blog posts work even better for you in terms of conversion, you need to give it a call to action. Instead of just letting people read and leave, nudge them to subscribe to your blog for more such great content, get a free downloadable resource related to the topic, or check out a product page that perfectly complements what they just read.
Another important thing is using internal and external links. Internal links to other relevant content on your website help people explore more. On the other hand, when you use links to high-quality external sources, you add credibility to what you are saying. Also, make your blogs easy to digest with headings, subheadings, and eye-catching visuals.
Landing page
Landing pages are like targeted sales pitches. They are designed for specific campaigns or offers and are focused on a single conversion goal. The key to a successful landing page is a headline that immediately tells visitors what the offer is. The copy should then explain the benefits of the offer and why it’s valuable.
To keep people focused on the conversion goal, minimize distractions on the page. Remove unnecessary navigation or other elements that could pull their attention away. If you are using a form on your landing page, keep it short and to the point.
CRO Best Practices
To improve your conversion rate, you need to employ proven strategies and constantly test to see what works best for your specific audience. Let’s have a look at some of the CRO best practices.
Prioritize Above-the-Fold Content
Above-the-fold content is what you see on a newspaper’s front page before you have to fold it. On a website, it’s the content that is first visible on the screen without any scrolling. This is prime space, so make it count. Your most important messaging, eye-catching visuals, and calls to action should be placed here. Visitors should immediately understand what you offer and why they should care without having to scroll down.
Simplify CTAs
Your call to action is the button or link that prompts visitors to take the desired action. Keep your CTAs clear, concise, and compelling. Use strong action verbs (for example, “Shop Now,” “Get Started,” and “Download Free Guide”) and make the button visually prominent. Avoid using vague language or multiple competing CTAs on the same page, as this can confuse visitors and decrease conversions.
Run A/B Tests
A/B testing (also known as split testing) is very important in CRO. It involves creating two versions of a webpage (A and B) and showing them to different segments of your audience. By tracking which version performs the best in conversions, you can make data-driven decisions about which changes to implement. Explore different elements, such as headlines, images, CTAs, and page layouts, to see what resonates best with your visitors.
Add Pop-Ups
Pop-ups are effective for capturing attention and driving conversions, but they need to be used strategically. Avoid intrusive pop-ups that appear immediately upon entry or interrupt the user experience. Instead, use exit-intent pop-ups (which appear when a user is about to leave the page) or timed pop-ups that appear after a user has spent a certain amount of time on the page. Offer valuable incentives, such as discounts, free structures, or newsletter sign-ups, to make the pop-up more appealing.
Use a Hello Bar
A hello bar is a thin bar that sits at the top or bottom of your website. It’s often used to promote special offers, announcements, or newsletter sign-ups. It’s less intrusive than a pop-up and can be a good way to draw attention to important information. However, like pop-ups, it’s essential to use hello bars sparingly and make sure they don’t detract from your user experience.
Use Heat Maps
Heatmaps visually represent how users interact with your website. They show where users click, scroll, and move their mouse. By analyzing heatmaps, you can identify areas of your website that are attracting the most attention and areas that are being overlooked. You can then use this information to optimize page layouts, improve navigation, and strengthen overall user experience.
Send Abandoned Cart Emails
Abandoned carts are a great source of lost revenue for e-commerce businesses. Sending automated emails to remind customers about items left in their carts can be a highly effective way to recover these sales. Include a clear call to action in your abandoned cart emails, such as a direct link back to the cart or a special discount to incentivize purchase completion.
Make Your Site Fast
Website speed is a critical factor for both user experience and conversions. Slow loading times can create frustration and high bounce rates. Optimize your website’s code, images, and server configuration for fast loading times on all devices. Tools like Google PageSpeed Insights can help you identify areas for improvement.
Mistakes to Avoid When Running a CRO Campaign
While CRO is a powerful strategy, it’s easy to make mistakes that can hinder your results. Let’s understand some of the common mistakes to avoid when running a CRO campaign.
Making Changes Based on Guesses Instead of Data
This is perhaps the biggest mistake in CRO. It’s the easiest way to make changes based on gut feelings or personal preferences, but CRO should always be data-driven. You can use analytics tools to understand how users are interacting with your website so you can improve wherever needed.
Writing Content That Doesn’t Align With Your Business Goals
Your website content should directly support your conversion goals. If you are trying to generate leads, your content should focus on providing valuable information related to your service and include CTAs for lead capture. Don’t create content just for the sake of it; it should align with your overall business goals.
Doing Small Tests Before Bigger Ones
Small testing is good, but always start with larger, more impactful tests. For example, testing a completely redesigned landing page can provide more significant results than testing a minor change to button text. Once you understand the improvement areas, you can then do small tests to further refine your results.
Using Too Many Pop-Ups and Tests on the Same Page at Once
Bombarding visitors with multiple pop-ups or running too many A/B tests on the same page can create a confusing and frustrating user experience. Focus on using pop-ups strategically and testing one element at a time to accurately measure the impact of each change.
Ignoring Basic Design Principles
Ignoring basic design principles, such as visual hierarchy, consistent branding, and easy navigation, can impact the user experience negatively and hinder conversions. Your website should be visually appealing, easy to navigate, and provide a smooth experience across all devices.
Overlooking the Importance of Call-to-Action Buttons
Your CTA buttons are the gateways to conversion. Overlooking their importance can be a costly mistake. Make sure your CTAs are visually prominent, use compelling language, and communicate the desired action. Test different CTA buttons, sizes, and wording to see what performs best.
Failing to Create a Sense of Urgency
Creating a sense of urgency motivates visitors to take action sooner. You can achieve this through techniques such as limited-time offers, countdown timers, or highlighting limited stock availability. However, it’s important to use urgency tactics ethically and avoid creating false scarcity.
Not Building Trust With Your Audience Right Away
For online conversion, building trust is an essential factor. If visitors don’t trust your website or your brand, they are unlikely to convert. Build trust by displaying security badges, testimonials, customer reviews, and contact information. Make sure your website is secure (HTTPS) and that your privacy policy is easily accessible.
Making the Conversion Process Too Complicated
A complicated or lengthy conversion process can deter visitors from completing the desired action. Make the process as simple as possible by minimizing the number of steps required, asking for only essential information, and providing clear instructions. The checkout process should be smooth and easy, especially for e-commerce websites.
Top CRO Tools
CRO means understanding your audience and making informed changes to your website to boost conversions. The right tools can make this process much smoother by giving you insights, testing capabilities, and ways to engage your visitors. Here are some tools that you can explore:
Hotjar
Hotjar is a favorite among CRO professionals because it gives you a visual understanding of how visitors interact with your website.
Key Features: You can use their session recordings to uncover why users abandon forms or exit key pages.
Why It’s Useful: You can see where visitors are clicking, how far they are scrolling, and where they are dropping off. It’s perfect for identifying areas of friction and opportunities.
Use Case Example: If a specific page has a high bounce rate, Hotjar can help you uncover whether slow load times, confusing design, or irrelevant content is causing the problem.
SplitSignal
SplitSignal is designed especially for SEO-focused CROs. You can run A/B tests on meta tags, titles, and other SEO elements to see how the changes impact your traffic and conversions.
Key Features: You can measure the results of your tests directly within the tool, which makes it easy to understand what works.
Why It’s Useful: It’s perfect for testing how small changes in your SEO strategies affect user behavior and conversions.
Use Case Example: Test whether rewriting a product page’s meta description to include more actionable language boosts CTR and on-page conversion.
Plerdy
Plerdy combines heatmaps, pop-ups, SEO analysis, and more into one platform. It’s great if you are looking for a versatile tool.
Key Features: Its heatmap feature works in real-time, so you can see how users interact with your site as they browse.
Why It’s Useful: Its real-time heatmaps and behavior analytics let you track where users click, scroll, and hover on your website so you can fine-tune your design and layout.
Use Case Example: If your “Buy Now” button isn’t getting many clicks, Plerdy can show if users are ignoring it or struggling to find it on the page.
Optimizely
Optimizely is one of the most popular CRO tools for running A/B and multivariate tests. It’s ideal for businesses that want to experiment with design, content, or layout changes to optimize performance.
Key Features: Its multivariate testing allows you to test multiple combinations of headlines, images, CTAs, and layouts simultaneously to determine the most effective setup.
Why It’s Useful: Optimizely is known for its testing capabilities, which are ideal for websites with high traffic and complex user flows.
Use Case Examples: If you are unsure whether a minimalist design or a content-rich layout will resonate better with your audience, Optimizely can help you find the winning version.
HelloBar
HelloBar is perfect for creating eye-catching banners, pop-ups, and slide-ins that encourage visitors to take action. It’s a user-friendly tool that integrates smoothly into your website.
Key Features: Its easy-to-use editor lets you create attractive pop-ups and banners without needing technical skills, which is ideal for businesses of all sizes.
Why It’s Useful: HelloBar is highly customizable, so you can easily align its CTAs with your branding and messaging.
Use Case Example: Use HelloBar to offer a 10% discount for first-time visitors so that they can make a purchase or sign up for your newsletter.