It is a question that I have been asked many times in the previous couple of months and it is about time I put it into a formal post.
What is Conversion Rate Optimization?
In its simplest form, Conversion Rate Optimization (CRO) is the practice of trying to get more of a websites visitors to complete a defined goal. Many website owners are looking to drive more traffic to their websites to generate more revenue, smart website owners are trying to convert more of the visitors that they are already getting through Conversion Rate Optimization.
A conversion can come in many forms and for many websites it is different, some of the most common ‘conversions’ or ‘goals’ are:
- Product purchase
- Email newsletter signup
- Advertising clicks
- Submitting a contact form
- Requesting an information pack
A lot of websites have more than one goal/conversion which is not a problem.
The calculation for a websites conversion rate is relatively simple. First you need to find how many people performed your desired goal, then divide that by the number of visits to your website, you then multiply the result by 100 to get a percentage. Example, if my website sells shoes online and 5 people have bought today and I have had 100 visitors to my website, the conversion rate would be calculated like this:
(5/100)*100 = 5% Conversion Rate
Once you know your existing conversion rate you are then in a position to set yourself a target conversion rate that you are looking to reach through conversion rate optimization.
What’s involved in conversion rate optimization?
Conversion rate optimization can take many forms depending on the makeup of the website and the goal that is to be optimized. There are however a couple of concept that are universal to conversion rate optimization, these include A/B testing and Multivariate testing that allow you to test potential improvements vs the existing website.
So, to sum things up, Conversion rate optimization is the process by which website owners look to increase their revenue/ conversion rate without having to drive more traffic to the website.