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What Is Conversion Rate Optimization?: [Step-by-Step] Guide

by | Apr 18, 2022 | CRO, Digital Marketing | 0 comments

    You may have no idea why your leads aren’t converting at times. The only thing that can keep you from falling behind at that point is a precise conversion rate optimization approach.

    Even a slight increase in your conversion rate might result in a significant boost in your sales revenue. According to a Hubspot analysis from 2021, several businesses reported a 15% increase in conversion rate after enhancing their website with email forms. In addition, the initial events of films enhance the conversion rate by 12.7 per cent, according to the same survey. So it is how CRO improves the performance of your website. Let’s have a look at this notion in further depth now.

    What is Conversion Rate Optimization?

    Conversion rate optimization (CRO) is the process of optimizing your website design and landing pages in order to increase your conversion rate. A CRO campaign includes workflow improvements, split testing and content enhancements that will result in increased revenue, lower acquisition costs and highly-qualified leads. 

    All those people who don’t know about conversion rate, let’s discuss this term in a little more detail,

    Conversion Rate

    Conversion rate is the number of users who take the desired action on your website. These actions include purchasing your product, completing the web form, and signing up for your service. 

    • A well-designed website that is appealing to your potential customers will help you obtain a higher conversion rate. 
    • A low conversion rate of your website can be due to irrelevant copies, broken forms or slow loading of your page. 

    What is the formula to calculate the conversion rate?

    The formula for calculating conversion rate using the below formula,

    Conversion Rate = (No. of conversions/ Total visitors) x 100

    Suppose you define your conversion as completion of the signup form. So you will divide your number of completed sign up forms by the total number of visitors and then multiply it by 100. 

    Suppose you are calculating the conversion rate for the last quarter. The total number of visitors on your website for that period is 50,000, out of which 500 completed the signup form. So your conversion rate is going to be 1%. 

    Do you know what a good conversion rate is? It largely depends upon the niche, goals, demographics and industries you are working on. For example, according to a report by Statista, the average conversion rate for the food and beverage sector was 5.5% in the third quarter of 2020. On the other hand, the av. CRO for the hair care industry for the same period was 3.5%.

    What are the different CRO formulas?

    The most used CRO formulas are given below:

    Formula 1: This formula is used to calculate your website’s conversion rate,

    (Leads generated/Website traffic)=%Conversion Rate

    Formula 2: This formula is used to calculate the total number of net new customers on your website,

    Number of new customers= Net revenue goal/Average sales price

    Formula 3: This formula is used to calculate your website’s lead goal,

    Lead goal= Number of New Customers/% of Lead to close customer rate

    Lead to customer rate= total number of your leads/ Total number of your customers 

    What are Conversion rate optimization strategies?

    A successful CRO campaign helps you optimize your content for better results. In this process, you monitor your results and run different tests using your website data. Every firm can use some incredible CRO strategies for a successful business.

    Make proper use of CTAs in your blog posts

    https://wedevs.com/_ipx/https://cdn.wedevs.com/uploads/2019/05/CTA-best-practices.png?f=webp&q=90

    Call To Action (CTAs) work as a secret weapon for your website. Sometimes, your CTA entices your audience to take action, and, at other times,  not. You must be wondering why this is so?

    It is because people tend to ignore banner type information, and this phenomenon is known as banner blindness. 

    You can avoid such a situation by using text-based CTAs or creating your CTA as a button. The DSIM team reported a 45% increase in clicks for CreateDebate, which is an online debate forum because their CTAs look like buttons. Text-based CTAs are also effective in increasing your website’s leads. In one of Hubspot’s tests, it was found that text-based CTAs generated 93% more leads than other CTAs. 

    Add pop up forms in your blogs

    https://www.webascender.com/Portals/0/Blog/Popups/registration-form.png

    One step that no conversion rate specialist will miss is the usage of pop up forms in your blogs. The email capturing tool Sumo collected more than 20,000,000 email addresses with the help of pop-up forms in less than two years. This data shows you how pop-up forms help you generate leads for your business. Earlier, people thought that pop up forms were a dead end, but now they have re-emerged as a compelling marketing tool to grow your email lists, drive blog subscription rates, and promote your content.

    Run A/B testing on your landing page

    https://ceblog.s3.amazonaws.com/wp-content/uploads/2018/10/31135538/landing-page-ab-testing-7.jpg

    Landing pages play a crucial role in the success of your organization. According to Hubspot’s report, businesses that increase their landing pages from 10 to 15 see a 55% increase in their website leads. A landing page is where your website visitor converts into a lead. 

    Effective conversion rate optimization services involve the creation of an attractive and engaging landing page. The foremost step is to run A/B tests to determine the best features and design for your landing page. A/B testing is a quick way to test multiple versions of your web copy to identify what works best for getting more leads to your business.

    A better page speed

    https://allma.si/blog/wp-content/uploads/2019/12/improve-page-speed-1024×524.png

    According to HubSpot’s report, your website conversion rates drop by an average of 4.42 per cent for each extra second of load time. Your website’s speed has a major impact on your website’s conversion rate. Not just that affects your SEO as well. Slow page speed can move you to the bottom of Google’s search results. A fast loading website offers a quick and easy user experience that automatically decreases your bounce rate. A report stated that a 1-second delay in a website’s loading time could result in a 7% drop in conversions. Suppose your website earns a revenue of $100,000/day so a second’s delay will cost you around $7000/day.

    Add messaging feature to your web pages

    https://www.futuretravelexperience.com/wp-content/uploads/2020/03/Mindsay-chatbot-startup.jpg

    Messaging features like a chatbot that offers full-time assistance to your website visitors help you increase your conversion rate by 2x. According to a survey conducted by Mobile Marketer, 40% of millennials indicated they use chatbots on a daily basis. So now you know how crucial it is to include these messaging features in your high-performing pages.

    Why is Conversion Rate Optimization important?

    CRO enables you to understand your website behavior and optimize it to reach its highest potential. There are two major benefits of CRO explained below:

    Increases your marketing ROI

    Conversion rate optimization services allow you to run tests on your website and analyze its performance. A/B testing helps you make necessary changes in your website that will drive better results and higher ROI. In addition, you can create better processes for your next step with the collected data. 

    For example, Unbounce realized that people preferred giving their email addresses through A/B testing. They saw a 24% increase in their conversion rate because of this analysis.

    Enhances your user experience

    Conversion rate optimization experts help you create an improved user experience for your website visitors. You can personalize your website based on your user’s demographics and make it much more relevant and user-friendly for them. You attain better insights into your customer behavior with the help of tools like Google Analytics, session recording etc. 

    What are the best CRO tools?

    Quantitative tools

    Quantitative tools collect numerical data that helps you monitor your website’s behavior. These tools are as follows:

    • Analytical tools like Google analytics– It helps you track your website traffic. 
    • Heatmaps– It collects the number of scrolls, movements and clicks on a page.
    • Funnel tools– It is used when any visitor drops from your sales funnel.
    • CSAT tools– It measures your customer’s satisfaction.

     Qualitative tools

    Qualitative tools collect non-numerical data and include the following:

    • Feedback tools– Surveys that help you know your customer experience.
    • Session recording tools- Tools that help you monitor how your visitors navigate your website.
    • Online reviews– It is where you read what your customers feel about your product.

    Testing tools

    Testing tools help you analyze your optimization efforts and then change them in the right direction. These are as follows:

    • A/B testing tools– You can test and compare the variations of your website page to find the best methods for better results.
    • Conversion tracking tools– You can track your conversion with these tools.

    What are the benefits of CRO for eCommerce businesses?

    The average cart abandonment rate is 69.5 percent across all industries. One of the major challenges that every eCommerce business faces is shopping cart abandonment. It costs them millions in their sales revenue every year. Some of the most common reasons for shopping cart abandonment are given below:

    • Your customers can be distracted by plenty of forms and pop-ups on your website.
    • Difficulty during the checkout process can make them leave your website.
    • Your website’s hidden costs like taxes and shipping charges can irritate your customers. 

    Ecommerce conversion rate optimization strategies help you analyze and address these issues in real-time. For example, PearlsOnly is a Houston based jewelry store that saw a 12% increase in its conversion rate after optimizing its checkout with more CTAs. 

    All in All, 

    A well-established conversion rate optimization technique will help you create improved processes for your business for better results. A/B testing methods offer proper insights into your customer behavior and automatically help you create a remarkable user experience. Proper use of CTA’s in your blog posts and a faster user interface will increase your lead conversion to a great extent.