To understand what CRO, or conversion rate optimisation is, we need to break up the concept into parts. Firstly, it is important to grasp what you are referring to when we discuss conversion.
When someone that visits your website does exactly as you want them to do, that is called a conversion. Conversions come in all different forms. You may want the visitors on your site to purchase an item, give you their email address to sign up for a newsletter, or even to download something. Once a visitor has done what you wanted them to do, you have successfully converted them.
The Conversion Rate
The rate at which a visitor becomes a conversion can be measured in multiple different ways and this is usually carried out by your analyst. There are a lot of analytics platforms that will measure this rate depending on the parameters they are given. Google analytics is one of the most advanced analytics platforms for conversions, but there are several others too.
Different industries experience different rates, depending on market conditions and the nature of the industry and of course the nature of the desired conversion. A website seeking to convert visitors to customers that download music, will consider their rates differently to a website that is selling home appliances. Often this rate is measured in percentage of visitors in relation to the final conversion.
Optimisation of Your Website
The objective of optimising this rate is using branding, design, and call to actions that will enhance the activity of the visitor to complete the conversion. Sometimes optimisation involves incentivising the visitor by giving them a good reason to click through to the conversion. Optimisation is best achieved by using data that is already available to best understand the behaviour of visitors to your website. By being able to interpret common behaviours at certain points in the visitors journey it is possible to understand where conversions are successful and where there may be obstacles to the conversion.
How Visitors to Your Site Behave
CRO is influenced by several factors. By looking at the analytics that are available data that illustrates several behaviours are critical to understand CRO. The bounce rate, the exit rate, how long a visitor spends both in the pages they visit and the entire sit overall, as well as how many pages they visit will influence decisions on how to develop an optimisation strategy.
The data that provides this information is commonly referred to as metrics. overall it cannot be interpreted as a single unit, but when the metrics are brought together to form a bigger picture, it is much easier to understand what is going wrong and what is going right in terms of online strategy.
Why is CRO Important?
CRO matters. It relates directly to the bottom line of any online business or organisation. It influences profit margins and the outcome of business goals. It is also a major indicator of how well you are communicating your business and product in the digital sphere and will influence how decisions are made to maintain and increase business viability.
CRO should be a continuous and consistent practice. Every online business has room to improve. Changes in Googles algorithms means that you will need to have an analyst regularly monitoring your conversion rates and optimising them accordingly. Examining analytics a few times a year is only going to give the competition an edge.
Your Conversion goals are usually structured around a funnel that leads to the conversion and this is where measurement is the most effective. Because traffic to your site is monitored carefully, tracking mechanisms can show exactly where potential problems lie. Patterns tend to show up where either a design feature or a call to action is obstructing better online performance. This in turn results in better conversion goals whether it involves a sales outcome, or data collection.
A good CRO specialist will enhance the return on investment when you consider your spend on digital visibility online. By increasing the conversion rate and achieving your goals at a higher rate, the cost of your investment in CRO reduces proportionately. Done efficiently and consistently CRO has a direct impact on every other aspect of your digital activity.
Your competition will be working on Conversion rate optimisation. To get ahead or stay ahead of them you will need to be able to monitor their activity and behaviour too. If you get it right the CRO will dramatically reduce the cost of customer acquisition, which of course maximises your profits.
CRO has a domino effect on digital activity. It is one of the most profitable backend business activities to undertake. Look at any successful online business and you can be sure they have someone working away at constant improvement using conversion rate optimisation. Ignoring the need for CRO will eventually cut off the lifeblood to your business.