What is Conversion Rate Optimisation (CRO)?

“I understand what optimisation is, but what is conversion and how do you rate it?”. Our definition is simple. Conversion is when a visitor on your website takes an action that you want them to take. This could be signing up for your newsletter, making a purchase, downloading your brochure, or something completely different.

Whatever it is that you want visitors to your website to do, is what you should measure and then optimise. Conversion Rate Optimisation is:

  • Defined by your business needs and objectives
  • Taking the traffic you already have and making the most of it
  • Driven by analytics and user feedback, not guesses
  • A structured approach to improve your site’s performance
Conversion rate is not about getting as many visitors as possible. It is about getting quality visitors and keeping them engaged.

CONCEPTS, IDEAS & TERMS

CALL TO ACTION (CTA)

The primary button, link or other user interface element that asks the user to take an action that leads to or towards a conversion. Some examples are:

  • “Buy Now” button in your online store
  • “Sign Up” button on your newsletter subscription page
  • “Download Now” on a specific landing page

The thing to remember about A/B testing is that only one thing is tested at a time.

CONVERSION FUNNEL

The Conversion Funnel is the path visitors take to complete a conversion. This is sometimes referred to as Primary Flow. For your online store, the funnel may be:

Home page > product category page > product page > checkout page

We mentioned before that Conversion Rate Optimisation is based on analytics and using those numbers to design an action plan. Most people will get these numbers through Google Analytics, or another analytics service.

Let’s start by looking at the numbers we are planning to improve. Researching your Bounce RateExit Rate, and Engagement Metrics, is the first step in really understanding your conversion rate.

ENGAGEMENT METRICS

A/B OR SPLIT TESTING

The testing of one interface element against another version of the same thing. Examples can be:

  • A red button measured against a green button for effectiveness
  • A checkout button on the right versus a the same button on the left
MULTIVARIATE TESTING

The testing of multiple variations of many different page elements in various combinations to determine the best performing elements and combinations.

CALCULATING CONVERSION RATES

Quick recap. A conversion is whatever you want your visitors to do on your website. An example of this might be buying one of your products or services. Your Total Conversions is number of people who bought your products or (or whatever else you defined as a conversion). To get your Conversion Rate, you divide the total number of conversions by the number of visitors.

If you have 1000 visitors and 10 conversions, you have a conversion rate of 1%
BOUNCE RATE

Your Bounce Rate is the percentage of people who leave after viewing a single page. A high bounce rate is not a good thing. For some reason people aren’t finding what they’re looking for and they leave immediately.

EXIT RATE

You also have a specific Exit Rate for each page. It is the percentage of people who leave after viewing a particular page. Your exit rate lets you know the last page that users view before they leave. A high exit rate on a specific page could be an indicator of a problem.

AVERAGE TIME ON SITE

This really measures visitor engagement. The Average Time on Site of users gives you a general idea how long people stay on your site. A low average time on site means your visitors aren’t staying on your site long enough to complete a conversion.

 

AVERAGE PAGE VIEWS

Another Engagement Metric. It tells you how many pages the average visitor goes through before leaving. More page views can mean engagement. More page views, but no conversion can mean a lack of clarity in your conversion funnel.

OKAY, SO WHAT NEXT?

Let’s imagine that your website has 2,500 visitors per month but only 25 orders. Your knowledge of Conversion Rate Optimisation now gives you a choice. You can either pat yourself on the back for all those visitors or realise that the conversion rate could be much higher than 1% and work with us to optimise your site. Get in touch now to discuss your needs.

2018-05-19T22:48:20+00:00 February 9th, 2015|Conversion Rate Optimisation (CRO), Online Stores, Websites|

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