What is Conversion Rate Optimization?

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Updated on: January 10th, 2023Olga Pechnikova7 min read
Conversion Rate Optimization

One of the key goals that the best website development companies should have is to create and maintain websites that have an optimal conversion rate. Today we wanted to discuss why that is important for every business that operates online as well as providing a more in-depth understanding of what conversion rate optimization is.

What is Conversion Rate Optimization?

Conversion rate optimization (CRO) is defined as the process of increasing the percentage of visitors to a website that takes a specific action desired by the business such as making a purchase, signing up for a newsletter, requesting a quote, etc. The process itself involves multiple steps starting with following the customer journey through the site, then understanding the actions they do end up taking, before analyzing that information to better understand what is getting in the way of them completing the conversion a business is aiming for.

The process often involves utilizing specific CRO software, such as Lucky Orange which provides tools like dynamic heatmaps, conversion funnel review, and forms analytics to help determine where issues might be occurring. It is critical to understand users’ online behavior before you can consider which changes might be most effective. After areas of concern have been identified a web developer will typically use A/B testing to review options that will help increase the overall conversion rate of a site.

Generally, to calculate a site’s conversion rate, you take the number of times a user completes the desired goal by the total site traffic. However, there are variations on the calculation depending on the number of times a visitor is expected to visit a site before a conversion will occur or if they can convert once versus repeated times.

Why should a Business use CRO?

There are quite a few reasons why businesses should utilize conversion rate optimization periodically:

  • Increased ROI – This is the obvious benefit of optimization, a better return on investment. A higher conversion rate means you are getting more out of your existing customer base without launching new campaigns to generate additional business or leads.
  • Easy to scale – One issue regularly encountered when trying to scale a business is obtaining more customers. In some markets, the number of available customers is relatively fixed. By increasing your conversion rate, you are more easily able to grow your business without capping out potential customers. Additionally, it is more cost effective to invest in CRO compared to new customer acquisition.
  • Enhanced customer insights – When you study the customer journey and use A/B testing to help streamline your process, a byproduct is gaining a better understanding of your key audience including the type of messaging the resonates with them the best. This data can then be used in both SEO and marketing.
  • Improved user experience – CRO is vital to providing the best user experience By better understand what works on your site, along with what does not work, you will be in a position to remove the negative and enhance the positive which leads to a better experience for users. A better user experience, in turn, leads to improved engagement.

Top 5 CRO Tips

Here are our top 5 tips to increase conversion rate optimization on any website:

  1. Reduce clutter – In a world where more is often perceived as better, less is more effective when it comes to creating conversions. The reasoning is rather simple; avoid distractions. If there are too many features, too much content, or too many options then visitors can become frozen in a state of indecision rather than proceeding towards a conversion.
  2. Focus on big strategies – Rather than just looking at little ways to heighten CRO, instead, take a step back and first make sure you are effectively implementing the big strategies such as maximizing the overall user experience, having a mobile-optimized site, ensuring site speed is in an acceptable range or increasing your businesses creditability. While doing small things like changing button colors or size is important, it can be a lot like putting lipstick on a pig if you aren’t successfully using big strategies.
  3. More speed – Can a website ever be fast enough? The simple answer is no. According to an Aberdeen Group study, a one second delay can cause 11% viewer page views and a 7% reduction in conversions. That is on top of the decrease in customer satisfaction. You should do everything within reason to optimize the speed of your website for maximum conversions.
  4. Use images to compliment messages – A picture is worth a thousand words and they should be used to help compliment and convey your message by adding tone and emotion. A bland image does nothing to help your copy and message while a good image visually adds to your page, in some cases eliminating the need for excess copy.
  5. Utilize effective colors – Colors, while not being the most important aspect to conversions, should not be forgotten about either. Colors can be used to influence consumers’ emotions and perceptions of goods and services, which is a concept that has been well-documented. Additionally, the use of color effectively allows proper contrast where colors allow elements to stick out without clashing.

The Bottom Line

The bottom line is that understanding what conversion rate optimization is as well as implementing proven CRO tactics is critical to your online success. It can have a profound effect on the ability of your website and business to create as many conversions as possible. That is something that directly influences your profitability.

Be sure to check back every week for great new Lounge Lizard blog articles.

Published on: September 17th, 2018
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