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A Comprehensive Guide to Conversion Rate Optimization

 
A Comprehensive Guide to Conversion Rate Optimization

A Comprehensive Guide to Conversion Rate Optimization


You can convince the users to take required action on your site. If he does that then it means that he is converted. For increasing the percentage of these kinds of users, the process that you follow is known as conversion rate optimization. If you take interest in boosting the visitor’s share who buy from your company, then you can use conversion rate optimization (CRO). Buying an item from your online shop, download of a white paper or landing page sign up can be included in it. Now we will discuss some other terms that are related to CRO.

Conversion

You may have set a goal for the lead. If it completes that goal then we can say that conversion has been achieved. Suppose for a webinar an email invite is being sent by you. Then if for your session the subscriber registers then we can say that the conversion has been achieved. What is conversion in terms of a website? If on your site you want a user to take a particular action and he takes that action then we can say that conversion has been achieved.

Now what are micro-conversions and macro conversions?

Micro-conversion examples:

  • If you add a product to the cart
  • If you download a pdf
  • If for email lists you sign up

Macro-conversion examples:

  • If you subscribe to the service or product

If you register for event

If you buy an item from a website

Conversion rate

If among all your site visitors a number of visitors have completed your objective then calculating the percentage of these visitors is known as conversion rate.

Conversion rate = (No. of visitors completing an objective/Total visitors) * 100

What will be the indication of a high conversion rate? If the people take interest in your offerings and you get fruitful results from the market then it indicates that the conversion rate is high.

How will you define a good conversion rate? A 7-8 % conversion rate is known as good conversion rate. But for an ecommerce business it is 2.86 % only and it is 3-5 % for SaaS business.

If as per the standard of your industry you do not get the conversion rate, then this shows that:

According to the requirements of your audience your landing page or website is not created.

The visitors on your site are being stopped by something from fulfilling the objective.

Advantages of conversion rate optimization

1. It helps in improving the customer insights – Measuring the visitors’ pulse is basically the task of conversion rate optimization. In which sections of your site, they take interest and in which they don’t? For converting, which type of site experience convinces them?

2. It helps in lowering customer acquisition cost (CAC) – Suppose on your site you get 100 visitors and you spend $1000 on these. Now if only 20 visitors are converted then it means that $50 is your CAC. Now if you optimize the site and once again you get 100 visitors and you spend $1000 on these but this time if 40 visitors are converted then it means that $25 is your CAC. This shows that there is a 50 % decrease in your CAC.

3. It helps in maximizing the profits from current traffic – When selling a service, if we subtract its cost from revenue then we will get the profit. If for your business you do CRO then your site will be taking care of the right audience. As a result of this your revenue as well as your conversions will get increased.

If you are running an online business and you want to get a number of services of digital marketing like PPC, SMO, SEO etc. then contact a digital marketing company. 

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