In the field of marketing, conversion rate optimization (CRO) is a process or a method to increase visitors of a website into taking an action – be that filling out a form, subscribing to a service, becoming a customer, purchasing something from your website and many other things.
How to Calculate Conversion Rate
You can calculate your conversion rate by dividing the number of people who converts by the total number of visitors and then multiplying it by 100. For example,
We will elaborately discuss on how to calculate the conversion rate in the latter part of the article. Firstly, let’s go through some basic terms and FAQ’s about conversion and conversion rate.
What is Conversion?
In terms of website, conversion usually means the visitors completing a goal set by the site.
Nowadays, most marketing teams usually have one goal – that is to drive traffic toward websites, which then hoping to convert into leads. The instruction is simple – drive traffic and generate leads. It is just an oversimplification of the whole process. Many works go into driving traffic towards the site.
There are basically two types of conversion – micro and macro. The macro ones are usually the large conversion like purchasing a product or subscribing a service. The micro ones are the smaller conversions that lead up to the macro conversions, for example signing up via email or filling out a form.
By changing certain components of a website page, a business can expand the odds that webpage visitors will “convert” into a lead or client before they leave. Numerous sites are designed to convert visitors into clients. These conversions happen everywhere throughout the site – on the landing page, evaluating page, blog, landing pages etc. All of these can be optimized to increase into a higher conversion. The way toward improving those conversions is actually what CRO does.
Below are some examples of conversion –
– Purchase of product (macro)
– Subscription of a service (macro)
– Signing up for a free trial (micro)
– Signing up with email (micro)
– Creating an account (micro)
– Filling out a form (micro)
– Adding a product in the cart (micro)
How Does Conversion Rate Optimization Work?
In order to optimize the conversion rate to the maximum, you need to know where to optimize, what to optimize, and who to optimize for. These information and data are essential for any CRO strategy to be successful. If you don’t have enough data, then the chances of doing it successfully becomes really low. Below is some certain methods to help you optimize your conversion rates to the maximum.
1. The Quantitative Method
This method gives you numbers and statistics on how visitors in your website actually behave. This method studies their behavioral pattern and gives you solid statistics by taking many elements into concern. Analytical platforms such as Google Analytics are required to run analysis and gather this information. It can track your conversions as well.
Through this method you can learn many things about your visitors, for example, you are able to know which webpage they land first, which features of the page they engage with the most etc. These will help you to optimize those contents on the site and make them engage more. Furthermore, you can know which device and browser they use, what are their demographics and during which part they leave your site.
You can utilize this information and optimize where it’s needed, remove unwanted contents and many more!
2. The Qualitative Method
The first method is valuable when you have a large site with enough content as it you will be able to know from a numbers point of view, where to center your focus and efforts. You get to play with numbers, whereas this method lets you know the “why” behind the behavioral pattern of your visitors. This is more of a people-focused method. It is more subjective rather than numerical. You can use this method to do surveys, interviews, user testing and many more.
This method helps answer questions like, what is the reason behind their engagement to certain content or why did they specifically land on that page or what attracted them to view this content etc.
There are certain things that raw data alone can’t tell you about what brought a user to your site or how to make their engaging better. However, when you combine this information with your analytics data, you can gain a much better understanding of the pages on your site that give the best opportunities to optimize and engage the audience you want to target.
3. The “Gut” Method
Our previous methods were purely based on data and statistics. However, this one is not so much data based. This comes in many forms, most of them not so effective but sometimes it still works! Here, you either go with your guts/guesses/hunches or you do it because your competitor is doing it as well. These are basically like taking random shots in the dark. These have high chances of failure but rarely does it work as well. Sometimes the opinions of the highest paid person are taken into the matter here and then executions are changed accordingly.