What is Conversion Rate Optimization?
In simple terms, conversion rate optimization (CRO) is the process of increasing the percentage of visitors to a website who take a desired action, such as making a purchase or filling out a form. However, it is much deeper than that. CRO is the art of combining usability, graphic design, psychology, marketing, web design, and statistical analysis with the goal of understanding your audience and creating a website that is tailored to their needs.
Importance of CRO for Businesses
CRO is crucial for businesses because it directly impacts revenue. In fact, changes implemented from CRO tests often have a greater lift in a company’s revenue than adjustments to paid ad campaigns and SEO efforts. By increasing the percentage of visitors who take a desired action, businesses can increase their revenue and achieve their goals. Additionally, CRO can help businesses to understand their audience better and make data-driven decisions, ultimately leading to a better customer experience.
For example, if a business has a website with a conversion rate of 2%, that means that only 2 out of 100 visitors are taking the desired action. If the business is able to increase its conversion rate to 3%, that means they have an additional customer for every 100 visitors. This is a 33% lift in conversions.
For both eCommerce and lead generation sites, we often see larger lifts at the top of the funnel and smaller lifts at the final step. For example, an eCommerce site may have a lift of 25% from the collections page to the product page, a 15% lift from adding the product to the cart, but only a 2% lift at checkout. However, in some cases that can be an ongoing 2% lift in revenue.
Additionally, conversion rate optimization can help businesses to stand out from the competition by providing a better user experience and it can also help them to increase brand loyalty by providing a personalized and smooth experience. Overall, CRO is an essential tool for any business looking to increase revenue, gain a deeper understanding of its audience, and create a better customer experience. Most companies have a CRO test plan that is constantly running. A website is continuously changing and so are the customers.
In this blog post, we will dive deeper into what CRO is and the different tactics that can be used to improve conversion rates. We will also provide examples of how CRO can be applied to different industries and case studies showing the impact of CRO on conversion rates. By the end of the post, you will have a better understanding of how to optimize your website and increase your conversion rates.
What is Conversion Rate Optimization?
As mentioned before, Conversion Rate Optimization (CRO) is the process of increasing the percentage of visitors to a website who take a desired action. The ultimate goal of CRO is to turn more website visitors into customers, ultimately leading to increased revenue for the business. The process of CRO includes identifying the bottlenecks in the website and then making data-driven decisions to optimize it.
There are a variety of tactics that can be used to improve conversion rates. These tactics usually fall into two buckets; the first is detecting the issue and the second is testing the hypothesis
- Detection – conversion analytic analysis that looks at where visitors fall off the conversion funnel of the site.
- Detection tools – heat maps, click maps, form funnel analysis
- Testing – Ab testing and split testing
- Detection – conversion analytic analysis that looks at where visitors fall off the conversion funnel of the site.
Each tactic serves a different purpose and depending on the website’s specific needs, one or a combination of these tactics may be used.
The Importance of A/B and Split Testing
A/B testing is often used interchangeably with split testing, though there are key differences between the terms. Split testing refers to a method of testing in which a control version of a website, such as a landing page, is compared against a completely different version and uniquely distributed amongst website visitors to see which version yields more conversions.
A/B testing is a testing method that involves taking a variety of small variations of random elements of a webpage, such as the color of CTAs, and testing those variations on-site users to determine a winning variant. Unlike split tests, A/B tests show one page against a virtual page and split traffic accordingly; whereas split testing shows two different physical pages users can interact with.
It is an essential tactic in CRO as it allows businesses to make data-driven decisions about which changes to make to their website in order to improve conversion rates. A/B testing and split testing can be used to test different elements on a webpage, such as headlines, images, and calls to action. By understanding which elements are working well and which ones are not, businesses can optimize their website and increase conversion rates.
To get the most out of A/B and split testing, it’s important to keep these four key things in mind:
- Creating a clear hypothesis – Before starting the test, it’s important to have a clear idea of what you’re trying to accomplish and what elements you’re testing.
- Keeping the changes small – Making significant changes to your website can make it difficult to understand which change is having the biggest impact on conversion rates.
- Running the test for a sufficient amount of time – It’s important to run the test for a long enough period of time to get statistically accurate results.
- Identify – Identify the conversion rates by device (desktop, mobile) and traffic source
- Analyzing the data– Once the test is complete, it’s important to analyze the data and make decisions based on the results.
See this example of an A/B test we conducted for a client comparing a CTA button with one target against a CTA with three targets. Variation B won with a 120% lift in clicks. In most cases, it is recommended to have one option. Once you give a visitor an option their decision process slows down which can cause them not to make a decision at all. The reason that Variation B won is that customers were presented with a more specific set of options to meet their needs.
User Experience Design
User experience (UX) design is the process of creating a website that is easy to navigate and understand, with clear calls to action and a consistent design. A well-designed website will lead to a better user experience, which in turn will lead to higher conversion rates. When a website is easy to use and understand, visitors are more likely to take the desired action, whether it’s making a purchase or filling out a form. Additionally, a website that is visually appealing and easy to use can also increase brand loyalty and trust.
To create a website with a great user experience, it’s essential to follow best practices. These include:
- Keeping the design simple and consistent: A simple and consistent design makes it easier for visitors to understand the website and take the desired action.
- Making sure the website is easy to navigate: A website that is easy to navigate will make it easier for visitors to find what they’re looking for.
- Using clear calls to action: Clear calls to action tell visitors exactly what they should do next.
Where to get testing ideas for Conversion Rate Optimization
Conversion Rate Optimization testing ideas can come from a variety of sources. There is rarely a bad idea to test:
- Analytical Data – Use analytics tools, such as Google Analytics, to analyze user behavior on your website. Look for patterns, such as high drop-off rates on certain pages or low conversion rates on specific devices, to help identify areas that need improvement.
- Competitor Analysis – Study your competitors’ websites and see what they are doing differently. Look for elements that are working well for them and consider incorporating similar elements into your own website.
- Learn Industry Standards – There are many standard practices for CRO, such as creating a clear call-to-action, making sure your website is easy to navigate and optimizing your website for mobile devices. Becoming knowledgeable in common CRO tests will open up the possibilities for your own site.
Remember, the goal of CRO testing is to constantly improve the user experience on your website, so it’s important to continually analyze and test new ideas.
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Where to Implement a CRO Strategy
Now that you understand the core idea behind A/B testing, split testing, user design, and where to get ideas. it’s time to discuss strategy. More specifically, what pages on your website you should be looking to optimize using CRO. With CRO testing, it’s important to identify high-traffic areas. Not all pages will be a priority as they do not directly lead customers down the purchase or lead generation funnel Here are three pages that should have priority when conducting conversion rate optimization tests.
1. Landing Pages
Landing pages are the first point of contact for many website visitors, and they play a critical role in converting visitors into customers. A/B testing different versions of a landing page can help businesses identify what elements are most effective in driving conversions. This can include testing different headlines, images, and calls to action.
2. Product Pages
Product pages are another important area for CRO, as they are the point at which visitors decide whether or not to make a purchase. Optimizing product pages can include testing different layouts, product descriptions, pricing strategies, and the performance of images vs video vs text, and more.
3. Checkout Page
The checkout process is a critical point in the customer journey, and any friction in this process can cause visitors to abandon their carts. Implementing a CRO strategy on the checkout process can include testing different forms of payment, shipping options, and the overall layout and design of the checkout page.
Additional CRO Tactics
In addition to split testing and UX design, there are a number of other tactics and areas you should consider that can be used to improve conversion rates. These include:
- Color contrast. Color contrast affects how easily users can read and interact with the elements on a website. High contrast between foreground and background colors makes text easier to read and buttons and other interactive elements more visible. This can improve user engagement and lead to higher conversion rates. Additionally, high contrast can also improve accessibility for users with visual impairments. By providing sufficient contrast, the website becomes more usable for everyone, regardless of their visual capabilities.
- Price anchoring. Price anchoring helps to influence a customer’s perception of value. By anchoring a higher price point as the first thing a customer sees, the perceived value of a lower price point increases, making it appear more attractive to the customer. This can be done a few different ways:
- Display a higher-priced product or package alongside a lower-priced option.
- Show the initial higher cost of a product first, then show the special discounted rate.
- Utilize bulk pricing to increase average AOV. Bulk pricing is when a discount is added for buying in bulk. For example, three boxes of cookies for $20 instead of $8 each. The idea is that the customer believes they are getting a great deal rather than buying an unnecessary amount.
- Change the dollar amount to a percentage. Many people don’t do math in their heads very well. Depending on the price point, phrasing it a s“20% savings” can seem higher than a “$2.00 off” price point.
- Attention span. Because you cannot control the types of people who will come visit your site, it’s important to provide content that appeals to a wide variety of people. One aspect of your customers that should be considered is their attention span. High and low attention spans affect how and for how long a customer will interact with your site. If your website is full of mostly large paragraphs with few breaks, it might intrigue a high attention span user while boring a low attention span user. And vice versa. Here are a few things focus on for conversion rate optimization testing:
- Scannability: Use headings, bullet points, and short paragraphs to make the content easy to scan for those with low attention spans.
- Interactive elements: Use interactive elements such as quizzes, polls, or videos to hold the attention of visitors with high attention spans.
- Simplicity: Use simple language to make the content accessible to visitors with low attention spans.
- Highlighting: Use bold, italic, or underline to highlight important information for visitors with low attention spans.
- Personalization: Recommend products based on browsing history to hold the attention of visitors with high attention spans.
In this blog post, we have discussed what Conversion Rate Optimization (CRO) is and its importance for businesses. We have also gone over different tactics that can be used to improve conversion rates, including A/B testing, user experience design, and additional CRO tactics such as color contrast and price anchoring.
CRO is not a one-time process, but an ongoing effort. It is important for businesses to continuously monitor and optimize their website to ensure that it is meeting the needs of their audience and that conversion rates are increasing. Ongoing CRO efforts will help businesses stay competitive and continue to increase revenue.
If you’re interested in learning more about CRO and how it can be applied to your business, our company, Ometrics Agency, offers consulting services that can help. Our experts can help you to create a comprehensive CRO strategy, identify bottlenecks on your website, and make data-driven decisions to optimize your website and increase conversion rates. Contact us today to learn more and schedule a consultation.
Frequently Asked Questions
How do you measure the success of a CRO effort?
The success of a CRO effort can be measured by comparing the conversion rate of a website before and after the changes were made, and by tracking key metrics such as bounce rate and average time on site.
How much does CRO cost?
Conversion rate optimization testing is the most efficient easy to increase your leads and revenues on a site. The percentage increase you can make in an ad is much less than the positive lift from a test. Implementing test results has a compounding effect on site conversion ad revenue. Winning results quickly see a return on the consultancy fees, so it is a smart business decision in the long run. The cost for conversion rate optimization testing is dependent upon the number of websites and total site traffic and tool costs. Ometrics fees for conversion rate optimization start at $1495.
Why is conversion rate optimization important?
Conversion rate optimization is important because it may enhance the proportion of website visitors who complete a desired activity, such as completing a purchase or filling out a form. By gathering more value from the traffic and users a business already has, conversion rate optimization enables it to reduce the cost of acquiring customers. Businesses can boost income per visitor, attract more clients, and expand their business by increasing their conversion rate. Businesses may discover and solve the root causes of conversion difficulties by employing data-driven strategies to determine why visitors aren’t converting, improving user experience and increasing website success.
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