7 Effective Ways to Optimize Your Conversion Rate

Date: 2022-09-08 | Time of reading: 14 minutes (2552 words)

CRO

CRO (Conversion Rate Optimization) is essential when it comes to lead generation and effective sales. In an attempt to improve the functionality of sites, many companies overload it with complex algorithms and completely forget about convenience and logic. However, it is “smart” but not complex sites that work best for traffic.

Increasing traffic is an important task, but not the final one. It is much more significant for businesses to convert the attracted traffic into quality leads. Moreover, according to statistics, it is more profitable to keep existing leads, rather than attract new ones. Businesses are more likely to grow progressively and have a stable future with such leads. In this context, it is important to keep track of the Conversion Rate.

What is Conversion Rate

Conversion Rate is the ratio of site users who have completed the target action to the total number of visitors. The target action can be anything: purchase, registration, subscription, and others. It depends on the tasks of the business at the moment.

Conversion Rate

Let’s say, the target action is a subscription to a newsletter. The subscription form is placed on all pages of your site. In three months 500 people out of 20,000 site visitors became subscribers. To calculate the conversion rate, you need to divide the number of subscriptions by the total number of visitors and multiply by 100. We get 2.5%.

You can calculate the conversion rate for each page of the site separately, and the calculation formula is universal for any task.

For example, you need to calculate the conversion rate of a lead magnet. You use an e-book as a lead magnet. You add a download link only to some pages of the site. To find out the conversion rate, it is enough to divide the number of downloads by the number of visits to those pages where the lead magnet is located.

A quality website has a high conversion rate. What does quality mean? User-friendly, informative, attractive to the target audience. Low Conversion Rate indicates poor design, low site speed, and form errors.

"Good" Conversion Rate

What are high values and low values? What value will be a positive result? Everything is very individual and depends on the scope of the company, its geography, business goals, characteristics of the target audience and other factors.

In the field of e-commerce, the average conversion rate globally was 2.17% in the third quarter of 2020. A year ago, the indicator was 2.37%. At the same time, the American market showed a value of 2.57%.

The conversion rate varies significantly in different time periods and in different countries. It also varies depending on the niche. The conversion rate of e-commerce in the food segment is 5.5%, and in the hair care segment - 3.5%.

What should you rely on? On your own expectations, on the increase in the indicator in relation to the previous year, on the comparison of the conversion rate with the average value for your industry, on the achievements of competitors. If any position doesn't suit you, start optimization.

Where is the CRO strategy applied

Any page on your site can convert, whether it's the home page, pricing page, or blog. You need to tidy up each section of the site in order to achieve the maximum effect from optimization.

  1. A main page is the number one goal for CRO, since the first acquaintance of the user with your company begins with it. A good homepage will encourage a visitor to continue their journey through your website. A bad homepage will force them to leave it. The homepage is a good place for "anchors". It can be a chatbot for constant communication with the client, a subscription button or interesting links.

  2. A pricing page visit can be decisive on the way to conversion. Attractive and convincing prices will strengthen the desire of the buyer, and the biased prices will scare away. How to convince buyers of the adequacy of the cost? Use CRO. The conversion can be increased by changing the pricing intervals (cost per month or per year), information support of the price, noticeable contacts for communication with the manager and the usual pop-up form.

Pop-up form

For example, Hotjar placed an email collection pop-up on their price page. As a result, the company received more than 400 new customers in less than a month.

  1. A blog is an interesting section of your website that has a high conversion potential. Post useful and high-quality content and convert readers into potential customers. Use a CTA button to do this. You can provide readers with extended content, summary reports, or e-books in exchange for email.

  2. Landing pages have the highest conversion rates because that's what they're made for. They are needed so that the person who visits them completes desired actions. On average, the conversion rate here reaches 23%. Landing page optimization is simple and very creative. For example, it is enough to add a video from last year's event to the page in order to optimize its conversion rate. This will increase the interest and desire of visitors to attend this year's event in person. Share with users some free material. At first, make available a preview of the content, and then offer to download the full version.

CRO in figures

There is no doubt that CRO is useful for any company that is interested in a strong digital presence. The desire to make casual website visitors into potential buyers and, ultimately, high-quality leads, doesn’t depend on the size and type of your business. Everyone wants it. It remains only to choose an effective optimization method.

Easy to say, not easy to do. Marketers face difficulties already at the stage of setting a conversion goal. “Last month the landing page converted 50 people, next month it should convert 100 people.” What does this phrase mean? When it comes to CRO, it is not about getting 50 extra conversions next month, but about getting 50 conversions for every X number of people who visit the site. In other words, we are not talking about sales in absolute terms, but about the effectiveness of sales, in relative terms.

Conversion rate optimization is not about generating more new traffic, but about getting more out of existing traffic and leads. Here are two formulas to calculate CRO:

  1. Calculate conversion rate. As we wrote above, you need to divide the number of conversions (leads generated) by the total website traffic, and then express as a percentage.

Calculate conversion rate

  1. Calculate the lead goal. Determine the required number of new customers and divide it by the ratio of attracted customers to their total number.

Calculate conversion rate

For example, the website has 10,000 monthly visitors. 100 of them become leads, and 10 people become customers. The conversion rate of this website is only 1%.

At the same time, it is interesting for a business to receive not 10, but 20 or even 30 customers every month. What to do? You can try to increase website traffic to 20,000 people, and pray that traffic doesn’t drop. However, this method carries certain risks. Or you can go the other way and use conversion rate optimization. It will allow you to “squeeze out” the required number of customers from current traffic.

Doubling the conversion rate doubles the number of potential leads and customers.

CompanyABC
Traffic per month10 00010 00010 000
Conversion rate1%2%3%
Leads received100200300
New clients102030

Have you noticed that along with the increase in the conversion rate, the number of new customers and leads has also increased? And yet the traffic remained unchanged.

It’s like filling a bucket with water: no matter how much traffic you pour into a “leaky bucket”, it will never be full. If you don't fix the cause of the “leak”, you won't improve business performance. So, it's time to start optimizing.

Conversion Rate Optimization Strategies That Work

Here are 7 CRO strategies your business could benefit from.

  1. CTA in blog texts. If you manage to overcome the banner blindness of readers, then the practice of using CTA in articles will show itself perfectly.

  2. A/B testing of landing pages. Landing pages promote close interaction between customers and the company This is where users become leads and then buyers. Use A/B Testing to optimize landing pages. Tests will suggest designs and content that are interesting to visitors. Test different site versions, images, forms, CTAs, buttons to find the best combination.

For example, China Expat Health was able to achieve a 79% increase in conversion rates through testing. Among the activities that led to a significant result, it is worth noting the change of the name "Health Insurance in China" to "Save 32% on Health Insurance in China". The effect was backed up by posting real customer reviews.

  1. MQL without delay. Some leads are ready to become part of the conversion without preheating. Don’t interfere with them, don’t push them on the typical path of an ordinary lead, but on the contrary, help them. A qualified marketing lead will be interested in thoughtful design, high-quality sales texts, and attractive CTAs.

  2. Automation of the work of your employees. Among the variety of work processes, there are absolutely routine ones. Such tasks can be taken out of the manual control of your colleagues, which will make their life easier. It's not difficult to do with marketing automation software.

For example, set up automatic sending of messages to subscribers. After that, a potential client with one touch will be able to book a convenient time for him to meet with the manager. You can also set up notifications that the sales team will receive when leads move through the site and take a valuable action (visiting the pricing page).

According to statistics, the Open rate of abandoned cart emails reaches 45% (Moosend research). In the field of e-commerce, this knowledge definitely needs to be used. After opening an email, 21% of readers click on the link, half of them complete their purchase.

Pop-up form

Such letters also can be automated.

  1. Distinguish high-converting website pages. You need to know the pages of your site with high conversion rates inside and out. And in different ways to communicate with visitors on these pages. If suddenly the user has a question, he should be able to instantly get an answer. For this purpose, use live chat software, various messaging functions, and chat bots. If the user is “stuck” on the page for more than 2 minutes, offer him help through a pop-up window.

  2. SERP for effective articles. The posts you publish on your blog are sometimes useful to analyze and categorize. There are those who have high traffic but low conversions. Then SEO is needed, or you need to work on the CTA or the content of the article as a whole. High conversion rates for an article are a reason to think about improving the quality of the traffic they attract. To do this, apply to such posts SERP — content optimization for the search engine results page. Don't forget that your blog should contain only relevant information.

  3. Retargeting. Here's the simple truth. Most visitors leave your website without taking the targeted action. Retargeting from social networks and other platforms will allow you to return some of the "runaway" customers. Retargeting works on the following principle: visitors to your site are “tagged” and then they are tracked. When they visit correlated sites on the Internet, ads pop up that remind them of you. This method works especially effectively for those who have left high-converting pages of the site.

For ads used in retargeting, the same “golden rules” apply. Advertising should be bright, texts should be selling, CTA should be eye-catching, and your offer should be clear, concise and attractive, without puzzles. Then the retargeting tool will work as it should.

For example, United launched a retargeting campaign that focused on potential customers who interacted with the company for the first time and were already considering booking a vacation. The target audience was shown with a 15-second video with a CTA at the end. If the client was attracted by the video, he clicked on the button and instantly got to the company's website. The system worked great: 52% of monthly YouTube conversions came from ads from this video.

How to take the first step

We invite you to evaluate the potential of the project using the PIE system. This simple method will determine the course of action if you are confused.

Each element of optimization is evaluated from the position of three factors:

  1. Potential
  2. Importance
  3. Easy

Score each item from 1 to 10, where 1 is the lowest score and 10 is the highest score.

The following questions will help you to grade:

  1. How much improvement will this project bring?
  2. What is the significance of these improvements for the business?
  3. How much effort will it take to bring the idea to life?

After scoring, calculate the arithmetic mean for each item. Rank items in descending order based on results. The best projects will head the list, and you should start with them.

The PIE system is quite subjective and primitive, but it is simple to understand and implement, and can definitely serve as a starting point at the beginning of CRO.

CRO FAQ

What is the goal of CRO?

Companies use conversion rate optimization to increase the likelihood that website visitors will take targeted actions. In other words, the goal of CRO is to increase the percentage of people who complete the targeted action out of the total number of visitors.

What is a CRO strategy?

A CRO strategy is a set of actions that a business takes to achieve its goal. In simple words, it converts random visitors into potential customers, and then into people who have made a purchase. Each CRO strategy is individual, because it depends on the starting state of the company, key indicators, characteristics of the target audience, and other factors.

Before developing a strategy, do not neglect feedback from customers. Reviews will help you find interesting ways to improve. Conduct A/B tests to find the best combinations of website elements that drive conversions.

Why are CRO tools needed?

CRO tools are a set of tricks and software that simplify the process of website optimization. Some tools allow you to fully automate CRO, others help with customer acquisition and retention. There are tools that help with analytics, as well as tools that allow you to track the actions of visitors on the site, work with heat maps, collect feedback, or automate tests.

Why do a CRO test?

CRO tests are carried out to understand how you can change the elements of the site to increase conversion. For example, you can change text, buttons, page design, element layout, colors, and shapes. In this case, your decisions are based on an accurate calculation, and not on personal opinion.

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Author: Polina Zakaryan

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