Conversion rate optimization (CRO) is the process of increasing the percentage of conversions from a website or mobile app. CRO typically involves generating ideas for elements on your site or app that can be improved and then validating those hypotheses through A/B testing and multivariate testing.
Why is conversion rate optimization important
Conversion rate optimization is important because it allows you to lower your customer acquisition costs by getting more value from the visitors and users you already have. By optimizing your conversion rate you can increase revenue per visitor, acquire more customers, and grow your business.
For example, if a landing page has a conversion rate of 10% and receives 2000 visitors a month, then the page will generate 200 conversions per month. If the conversion rate can be improved to 15% by optimizing different elements on the page, the number of conversions generated jumps by 50% to 300 per month.
There is always room for improvement when it comes to increasing conversions, and the best companies are constantly iterating and improving their sites and apps to create a better experience for their users and grow conversions.
Establishing conversion metrics
Conversion rate optimization begins by first identifying what the conversion goals are for any given web page or app screen. The success metrics of your website or mobile app will depend on the type of business you’re in, and what your goals are.
For example, If you sell products online, a conversion for you may be purchases, or the number of website visitors that add a product to their shopping cart. If you sell products or services to businesses, you might be measuring the number of leads your website collects or number of white paper downloads.
Some common conversion goals organized by industry type:
Media - pageviews, ad views, newsletter subscriptions, recommended content engagement
Ecommerce - product sales, add-to-carts, shopping cart completion rate, e-mail newsletter sign-ups
Travel - booking conversions, ancillary purchases, social shares
B2B - leads generated, deals closed