Should You Do Conversion Optimization On Your Business Website?
Are you tired of driving traffic to your website without seeing a significant increase in qualified leads and customers? You’re not alone. Most marketing teams focus on driving traffic, but conversion rate optimization (CRO) can help you get more out of your existing traffic and propel your company towards long-term, sustainable growth.
By improving your conversion rate, you can generate more qualified leads, increase revenue, and lower acquisition costs. In this guide, you’ll learn the power of CRO, why your business should focus on improving your conversion rate, and how to get started.
Key Takeaways:
- Optimize Your Existing Traffic: Instead of focusing solely on driving new traffic to your website, conversion rate optimization (CRO) helps you get more out of your existing traffic, leading to long-term, sustainable growth.
- Improve Your Conversion Rate: A high conversion rate means your website is well-designed, formatted effectively, and appealing to your target audience. Identify areas for improvement, such as slow load times, broken forms, or ineffective copy, to boost your conversion rate.
- Focus on Key Areas of Your Website: Prioritize CRO efforts on high-impact areas like your homepage, pricing page, blog, and landing pages, where small changes can lead to significant increases in conversions and revenue.
What is Conversion Rate Optimization (CRO)?
For businesses looking to maximize their online presence, conversion rate optimization (CRO) is a crucial aspect of their digital strategy.
Definition of CRO
Now, let’s define what CRO is. Conversion rate optimization is the process of increasing the percentage of users or website visitors who complete a specific action, such as filling out a form, making a purchase, or subscribing to a service. This is achieved through content enhancements, split testing, and workflow improvements, resulting in highly-qualified leads, increased revenue, and lower acquisition costs.
Importance of CRO for Business Growth
There’s no denying that CRO is necessary for business growth. By focusing on improving your conversion rate, you can propel your company toward long-term, sustainable growth. It’s about getting more out of your existing traffic and leads, rather than solely relying on driving new traffic to your website.
Definition of CRO goes beyond just increasing conversions. It’s about understanding your target audience, identifying pain points in your user experience, and making data-driven decisions to optimize your website’s performance. By doing so, you’ll be able to generate more qualified leads, increase revenue, and reduce acquisition costs.
Benefits of Improving Conversion Rate
Some of the most significant benefits of improving your conversion rate include increased revenue, lower acquisition costs, and highly-qualified leads. By optimizing your website’s performance, you’ll be able to maximize the potential of converting website visitors into paying customers.
Plus, by focusing on CRO, you’ll be able to gain a competitive edge in your industry. With a well-designed and optimized website, you’ll be able to outperform your competitors and establish your brand as a leader in your market. This, in turn, can lead to increased customer loyalty, brand advocacy, and ultimately, business growth.
Understanding Conversion Rate
Assuming you’re interested in optimizing your business website, it’s imperative to understand what a conversion rate is and how it affects your online presence.
What is a Conversion Rate?
With every visitor to your website, there’s an opportunity for them to take a desired action, such as filling out a form, making a purchase, or subscribing to a newsletter. A conversion rate is the percentage of visitors who complete this desired action.
How to Calculate Conversion Rate
To calculate your conversion rate, you need to divide the number of conversions (e.g., form submissions, purchases, or sign-ups) by the total number of visitors to your website, and then multiply that number by 100.
The formula looks like this: Conversion Rate = (Number of Conversions ÷ Total Number of Visitors) x 100. For example, if you had 500 form submissions and 20,000 visitors last quarter, your conversion rate would be 2.5%.
Factors Affecting Conversion Rate
Assuming you want to improve your conversion rate, it’s crucial to understand the factors that affect it. Here are some key elements to consider:
- Website design and user experience
- Content relevance and quality
- Call-to-actions (CTAs) and their placement
- Page loading speed and mobile responsiveness
- Target audience and demographics
Assume that even small changes to these factors can significantly impact your conversion rate. Calculate the potential increase in conversions and revenue by optimizing these elements.
By understanding what affects your conversion rate, you can identify areas for improvement and create a strategy to boost conversions and drive growth for your business.
Where to Implement a CRO Strategy
Despite having a solid understanding of what conversion rate optimization is and how to calculate your conversion rate, you may still be wondering where to implement a CRO strategy on your business website.
Homepage Optimization
Now, let’s start with your homepage. This is a prime candidate for CRO, as it’s often the first impression visitors have of your website. You can optimize your homepage by emphasizing links to product information, offering a free signup button, or even incorporating a chatbot that solicits questions from visitors at any point during their browsing experience.
Pricing Page Optimization
Implement a CRO strategy on your pricing page, which can be the make-or-break point for many website visitors. By modifying the pricing intervals, describing the product features associated with each price, including a phone number for visitors to call for a price quote, or adding a simple pop-up form, you can increase conversions.
Another example is Hotjar, which added a simple email opt-in popup form on its pricing page and got over 400 new leads in just three weeks. This demonstrates the potential of CRO on your pricing page.
Blog Optimization
Even your blog can be a massive conversion opportunity for your website. In addition to publishing thoughtful and helpful content about your industry, you can use CRO to convert readers into leads. This process often includes adding calls-to-action (CTA) throughout an article or inviting readers to learn more about a topic by submitting their email address in exchange for an ebook or industry report.
Blog posts can be optimized with CTAs, such as “Download our latest ebook” or “Sign up for our newsletter,” to encourage readers to take action and become leads.
Landing Page Optimization
With landing pages, you have a high potential for conversion, as they’re inherently designed for people to take an action. You can optimize your landing pages by adding videos, preview content, or testimonials to encourage visitors to take the desired action.
Optimization of landing pages can lead to significant increases in conversions. For example, an event landing page can be optimized with a video of last year’s event to encourage visitors to register this year.
CRO Formulas and Strategies
To get the most out of your conversion rate optimization efforts, you need to understand the formulas and strategies that drive results. In this section, we’ll investigate the crucial CRO formulas and strategies that will help you optimize your website for maximum conversions.
Conversion Rate Calculation Formula
The conversion rate calculation formula is a simple yet powerful tool to measure your website’s performance. To calculate your conversion rate, divide the number of conversions (or leads generated) by your number of visitors (or web traffic), and then multiply that number by 100 to get the percentage. The formula looks like this: Leads Generated ÷ Website Traffic x 100 = Conversion Rate %.
Number of Net New Customers Formula
The number of net new customers formula helps you calculate how many new customers you need to reach your revenue goals. To calculate this, divide your net revenue goal by your average sales price. The formula looks like this: New Revenue Goal ÷ Average Sales Price = Number of Net New Customers.
For instance, if your net revenue goal is $100,000 and your average sales price is $1,000, you would need 100 new customers to reach your goal. This formula helps you set realistic targets and focus your CRO efforts on driving revenue growth.
Effective CRO Strategies for Business Growth
Even with the right formulas, you need effective CRO strategies to drive business growth. Some of the most effective strategies include A/B testing, user experience optimization, and personalized marketing. By implementing these strategies, you can increase conversions, improve user engagement, and drive revenue growth.
Number one on the list is A/B testing, which involves testing two versions of a webpage or element to see which one performs better. This strategy helps you identify what works and what doesn’t, so you can make data-driven decisions to optimize your website. By implementing A/B testing, you can increase conversions by up to 25% or more.
How to Get Started with CRO
Unlike other marketing strategies that require a significant overhaul of your website or operations, getting started with conversion rate optimization (CRO) is relatively straightforward. Here’s a step-by-step guide to help you get started:
Identifying Conversion Opportunities
You likely have multiple conversion opportunities on your website, from filling out a contact form to making a purchase. Identify the most critical ones that align with your business goals and have the greatest potential for improvement.
Setting Conversion Goals
You need to define what a conversion means to your business and set specific, measurable goals. For instance, do you want to increase form submissions, boost sales, or enhance user engagement?
Conversion goals should be specific, measurable, achievable, relevant, and time-bound (SMART). For example, “Increase form submissions by 20% within the next 6 weeks” or “Boost sales by 15% within the next quarter.” Having clear goals will help you focus your CRO efforts and measure progress.
Creating a CRO Plan
Assuming you’ve identified conversion opportunities and set SMART goals, it’s time to create a comprehensive CRO plan. This plan should outline the specific actions you’ll take to improve your conversion rates, including A/B testing, user experience enhancements, and workflow improvements.
This plan should also include a timeline, resources required, and key performance indicators (KPIs) to measure progress. A well-structured CRO plan will help you stay focused, prioritize tasks, and ensure that everyone involved is on the same page.
Tips for Successful CRO
All successful conversion rate optimization (CRO) strategies share certain key elements. By incorporating these tips into your CRO approach, you’ll be well on your way to maximizing your website’s conversion potential.
Understanding Your Target Audience
- One of the most critical aspects of CRO is understanding your target audience. Who are they? What are their pain points? What motivates them to take action? By gaining a deep understanding of your audience, you’ll be able to create targeted content and design elements that resonate with them and drive conversions.
Conducting A/B Testing and Split Testing
- Target specific elements of your website, such as CTAs, images, or headlines, and test different variations to see which performs better. This will help you identify areas for improvement and optimize your website for maximum conversions.
- The key to successful A/B testing is to test one variable at a time, ensure a large enough sample size, and run tests for a sufficient amount of time to generate reliable results. By doing so, you’ll be able to make data-driven decisions and optimize your website for maximum conversions.
Analyzing and Improving Conversion Rate
- Any successful CRO strategy relies on continuous analysis and improvement. Use tools like Google Analytics to track your website’s performance, identify areas for improvement, and measure the effectiveness of your CRO efforts.
- A thorough analysis of your website’s conversion rate will help you identify bottlenecks, optimize your funnel, and make data-driven decisions to drive more conversions. By regularly monitoring and improving your conversion rate, you’ll be able to maximize your website’s potential and drive more revenue.
This chapter has provided you with actionable tips for successful CRO. By incorporating these elements into your strategy, you’ll be well on your way to maximizing your website’s conversion potential and driving more revenue.
Conclusion
Presently, you have a solid understanding of the importance of conversion rate optimization (CRO) for your business website. By implementing CRO strategies, you can increase your conversion rate, generate more qualified leads, and ultimately drive revenue growth. Do not forget, CRO is not a one-time task, but an ongoing process that requires continuous testing, analysis, and improvement. Start optimizing your website today and watch your business thrive!
Cliff Tillery, MBA is the Chief Operating Officer and SEO Director at Make It Loud which is a digital marketing firm located outside of Atlanta Georgia. More than 14 years ago, he started search engine optimization at this award-winning agency and has taught digital marketing skills to business owners at the Gwinnett Chamber of Commerce, the Gwinnett Entrepreneur Center, and other groups.
