Conversion Rate Optimization (CRO) refers to the strategy of increasing the percentage of conversions by getting users to take specific actions. These actions can vary depending on the business goal and they involve product purchases, newsletter signs up, free-trial signs up, app downloads, click-on links, etc.
Conversion rate is a metric that allows website owners, marketing strategists, and SEO specialists to measure the ratio of users who take an expected action. To calculate the CR, the number of conversions on the website is divided by the total number of visitors on the website during the same period of time. Then, the number is multiplied by 100.
The formula for the conversion rate is:
Conversion Rate (%)=(Number of Conversions/Total Number of Visitors)×100
Google Analytics is a tool that helps in calculating the conversion for the pages of a website.
A "good" conversion rate is determined by multiple factors, like the type of industry and business, the target audience, and the specific goals of the website or campaign. The general guidelines show the following:
| Type of industry | Conversion rates |
|---|---|
| E-commerce | 2% to 3% (great performance websites are expected to achieve rates of 5% or higher.) |
| Landing pages | 10% to 30% |
| B2B (Business-to-Business) | 2% to 5% |
| SaaS (Software-as-a-Service) | 5% to 7% |
CRO relies on comprehending user behavior, clearing obstacles in the conversion process, and enhancing the user experience (UX) to facilitate actions that align with the website’s goals. There are several steps that help improve conversion rate.
Using dedicated tools like Google Analytics experts can identify user behavior patterns, bounce rate, and specific points where users stop or leave before completing the conversion process.
This type of testing helps determine which webpages or elements perform better and make the right decision for a successful campaign.
Users have little patience for slow-loading websites, often leaving quickly as a result. This behavior contributes to higher bounce rates. Tools like Wattspeed and Google PageSpeed Insights assist in identifying performance issues and providing solutions to address them effectively.
Clear CTAs are easier for users to understand. When they are well-placed and appealing, they grab attention and encourage users to click on them. CTAs should stand out on the page by being simple, using clear and action-oriented language, and featuring bold, attention-grabbing colors.
Navigation has to be simple and easy to use, helping users quickly find what they need. Clear menus, intuitive layouts, and minimal distractions should always be a top priority.
Ensuring the website is responsive and functions well on all types of devices is essential. A mobile-friendly design improves usability, enhances the user experience, and helps retain visitors not only across desktops but also smartphones.
Landing pages with high-quality content that grabs users' attention and keeps them interested is essential. An important aspect is to make sure the content matches the ads or links that brought users to the page. Keeping the messaging and visuals consistent helps build trust.
CRO is a continuous process. To meet their goals, experts need to regularly use specialized tools, gather user feedback, and test outcomes. This allows them to fine-tune strategies and take the right actions to maintain strong performance.
By optimizing the conversion rate, businesses can achieve their goals while improving user satisfaction. The key advantages of CRO include: