Conversion rate optimization offers one of the fastest, most effective methodologies for turning your existing web traffic into paying customers.
Also known as CRO, conversion rate optimization can involve numerous tools and strategies, but they’re all geared toward the same thing:
Converting visitors into leads and leads into customers.
There is a lot of conflicting and illuminating information out there about CRO. For instance, one study found that using long-form landing pages increased conversions by 220 percent.
However, some companies find that short-form landing pages work better for their audiences.
Similarly, about 75 percent of businesses who responded to another study stated that they struggled to find experts to help them optimize their landing pages.
Furthermore, 84 percent of landing pages have navigation bars, while studies show that removing navigation can boost conversions by up to 100 percent.
These numbers all illustrate why we need to focus on CRO if we want our businesses to succeed.
Let’s look at some of the most important things you need to know about CRO. I’ll walk you through the definition of CRO, the options you have for testing and iterating, and the strategies I’ve used to grow my own websites.
What Is Conversion Rate Optimization (CRO)?
In its simplest form, conversion rate optimization is the process by which a business increases the percentage of website visitors who convert on available offers.
For instance, if you have a 25 percent conversion rate, that means 25 percent of people who visit your website actually convert.
It’s kind of like running a retail store. Lots of people might enter and browse, but some leave without actually spending money.
Often, the process of CRO results in giving your website visitors more opportunities and reasons to say “yes.”
Micro conversions versus Macro conversions
Two types of conversions exist: macro and micro.
A micro conversion means that a prospective customer has somehow engaged with your brand. He or she might have signed up for your newsletter, watched your service’s explainer video, or followed you on social media.
Macro conversions are the biggies. That’s when someone converts on a primary offer on your website. They might buy a product, subscribe to a service, or fill out a lead-capture form.
Both micro and macro conversions matter. Micro conversions often lead to macro conversions down the line because the prospect becomes more enmeshed in your company’s culture and your brand.
What Is Conversion Rate 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.
Why Conversion Rate Optimization Is So Important
It’s all about the numbers, right? More sales equal more revenue, which means a more profitable business.
Let’s look at the calculations we performed above.
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?
That’s why conversion rate optimization has become essential if businesses want to thrive. You can always get more traffic, but you’re better off capitalizing on existing traffic when you can.
Benefits of Conversion Rate Optimization
There are several reasons to spend more money and time on CRO:
- Take advantage of existing traffic without spending cash on ads
- Build more trust among your audience
- Encourage repeat business and, by extension, customer retention
- Generate more revenue that you can inject back into the business
- Steal more customers from your competitors
- Better understand your customers’ wants and needs
- Reduce customer acquisition costs
- Improve brand perception
Understanding CRO in Marketing
CRO can take many forms, but it consists of a few essential moving parts. If you want to do conversion optimization right, you need the following features in place:
Call to action (CTA)
Tell your customers exactly what you want them to do with a large, attention-grabbing CTA.
Capture information from leads so you can market to them via email and other methods.
Build your own conversion funnel based on target audience behaviors and touch points.
Multivariate testing (MVT)
Test multiple versions of the same asset, such as a landing page, by adjusting multiple variables.
Test two versions of an asset by changing just one variable.
Improve your search engine rankings to ensure prospects can find your website (and your products or services).
Improve user experience (UX) by making your site as easy to navigate as possible, no matter what device your customer uses.
Conversion Rate Optimization Metrics to Analyze
Conversion rate optimization only works if you’re tracking key metrics. As you make changes to your website and funnel, you’ll want to know what specific impact those changes have on consumer behavior, sales, lead generation, and more.
- Bounce rate
- Average time on page
- Unique visitors
- User experience (UX)
- Number of Customers
- Page load time
Building an Effective Conversion Optimization Strategy
Are you searching for conversion rate optimization tips?
Let’s look at the list of metrics above. You need to know your starting metrics — a baseline, if you will — so you’ll know whether your CRO methods actually work.
You can get lots of information for free via Google Analytics.
Start with a strategy that looks something like this:
- Condense all images to the smallest size possible
- Improve top-level navigation and add breadcrumbs
- Sprinkle internal links through every page to encourage click-throughs
- Use big subheads on pages with lots of content to keep people reading
- Add unique CTAs to every page
This is a good starting strategy. Test every one of them using both A/B testing and multivariate testing to see how you come out, then repeat the process.
In the e-commerce world, conversions often happen at prodigious paces. That’s especially true if you sell inexpensive products.
You have to make the purchase as simple and easy as possible. Shorten the checkout process, offer more forms of payment, and allow customers to buy products as “guests” rather than having to create an account.
How to Use Conversion Rate Optimization Best Practices
Conversion rate optimization best practices can help you improve your results from the very beginning. In other words, you won’t have to start from scratch.
Following are some of the tried-and-true best practices I’ve used to accelerate my websites’ growth. You’ll learn how to do conversion rate optimization:
1. Identify your potential customer
Who belongs in your target market. And, sometimes more importantly, who doesn’t?
You want every marketing message to find its target. It must be so specific and compelling that your ideal customer can’t refuse it.
2. Survey users
Ask your users to complete surveys or polls. Keep the questions brief and few so you get more responses.
Avoid repetitive or boring questions. You’re looking for insights into your target customers’ specific wants and needs.
3. Collect and analyze data
As you gather more data, look for patterns. Maybe most of your customers find you via Twitter, for instance, or read your about page before looking at your products. You can use that information to boost conversion rates.
4. Run A/B tests
I can’t stress enough how important it is to run A/B tests. I’m always testing every aspect of my offers because I don’t want to leave money on the table.
Tools like Crazy Egg have built-in A/B testing functionality. This means you don’t have to comb through the data yourself and develop a pounding headache. Instead, you know the “winner” and the winning variant gets the majority of the traffic even before the test concludes.
5. Discover the exact journey visitors take through your site
Mapping your buyers’ journey can yield lots of tasty nuggets of data. Do they read lots of your blog posts? Do they follow you on social media? How far do they scroll down each page?
6. Focus on the content that matters using heatmap analysis
The most important pages on your website, such as your landing pages and product pages, deserve special attention. Run heatmap analysis on those pages to see where people click and how they use the page. You can then optimize it for maximum conversions.
7. Create the perfect page with A/B testing
A/B testing doesn’t stop after just one test. In fact, you might need dozens of tests before you craft the perfect page.
Test your headline, body copy, hero image, CTA, CTA button color, font size, font color, and anything else that might impact conversions.
8. Don’t “guess”
Everyone starts out with a guess, but that’s where the guesswork should stop. Once you’re actively collecting data, make decisions based on what the numbers tell you.
9. Guide your customers
CTAs and directional indicators can help you guide your customers where you want them to go. Be strategic about where you place CTAs, arrows, navigational panels, and other elements.
10. Reduce friction
Remove any elements that give the user pause or promote objections. For instance, if you don’t need a paragraph of copy on your sales page, delete it. Or, if you want to make the information more digestible, turn it into bullet points.
Conversion Optimization Rate Mistakes in 2018
Unfortunately, even with lots of information circulating the Internet, business owners still make mistakes when it comes to conversion rate optimization. I’d like to help you avoid the three most common pitfalls:
Not adding positive emotional response
In your copywriting, include positive storytelling to help convey benefits. Help your reader envision himself benefiting from your product or service.
Not adopting a mobile-first strategy
More than half of consumers use their mobile devices to surf the Internet. If your store isn’t mobile-ready, you’ll turn off prospects.
Not caring about the site speed
Your pages need to load fast. Consumers expect a page to fully load in fewer than 2 seconds.
Multivariate, or A/B Testing? Find out How to Test and Optimize Conversions
We’ve already touched on multivariate and A/B testing. They’re both highly useful conversion rate optimization tools.
A/B testing (also called split testing) is useful when you want to take a granular approach. You want to know how a CTA button’s color impacts conversions, but you don’t want anything else to contribute to the test.
Multivariate testing, on the other hand, works great when you have two very different versions of the same page or asset. Which one appeals most to your target audience?
Choose a testing platform
You can run A/B and multivariate testing manually, but I don’t recommend it. Use a tool to automate the process and get your results faster.
Crazy Egg, for instance, allows you to set up a split test and run it automatically. Crazy Egg will divide traffic evenly between the two versions, then hand you a “winner” once the test has reached statistical significance.
Analyze A/B test results
Once you have your results, record and analyze them. Why did your target audience prefer Version B, for instance? What aspect of the color red or the font Georgia or the wording of the CTA appealed to them?
You can use this information for later without running an identical A/B test.
Top Conversion Rate Optimization Tool
Once you’ve chosen a tool, such as Crazy Egg, you can run lots of different experiments. Each tells you something unique about your website and its visitors.
- Heatmap: Discover where mouses travel and users click or tap when viewing a web page.
- Scroll map: Find out the point at which most users stop scrolling on a given page.
- Recordings: Record individual sessions of a user’s experience on a specific web page.
- Snapshots: Look at different versions of reports Crazy Egg generates, from confetti to lists and overlays.
- A/B tests: Conduct A/B tests on any variation of a web page.
- Forms: Get detailed information about prospects and turn them into leads.
Advanced CRO Techniques
Once you’ve nailed the basics, you can drill down on more specific aspects of your website’s design, format, and copy to take conversion rate optimization to the next level. I recommend testing all of these facets of your website.
Test your web forms’ format
Different versions of a web form will perform differently.
Create more concise copywriting
Condense your copy so visitors have to read less.
Adjust your calls to action:
Test different CTA copy, backgrounds, and positioning.
Create an educated hypothesis
Predict what your tests will show before you run them.
SEO vs. Conversion Rate Optimization: Should You Focus on Increasing Traffic or Converting your Existing Traffic?
SEO and conversion rate optimization might seem like two sides of a coin. One is designed to attract more traffic (SEO), while the other optimizes content for existing traffic (conversion rate optimization).
So which matters more?
In my opinion, they’re equally important. Without SEO, you can’t get traffic in the first place. Without CRO, your traffic will produce fewer sales.
Let’s say you have a pretty good baseline for SEO, but it could use some improvement. First, though, you focus on conversion rate optimization. After a few months of hard work, your conversion rate jumps from 10 percent to 25 percent.
Great work! But it’s not over yet.
Now that you have a good CRO baseline, how do you grow your sales even further? You drive more traffic to your site and get even more conversions.
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.
Use the best conversion rate optimization tools in the business. Crazy Egg offers an ideal tool. Then keep testing. The more data you have, the better your chances of converting visitors.