What is Conversion Rate Optimisation

Guide to Conversion Rate Optimisation

What is it?
Conversion Rate Optimisation is the practice of increasing the amount of online sales and leads on a website, without increasing the amount of web visitors.

Who uses it
Conversion rate optimisation isn’t only important for Ecommerce and transactional sites. Every site should be clear on how to increase conversion.

Why is it useful to an organisation?

  • By optimising or improving your web conversion rate you can get more people to take more action without spending money on attracting more visits to your landing page or website.
  • Traffic is only one component of success, getting people to your site is necessary but if 98% (based on an average ecommerce conversion rate of 2%) of those people are just getting there and not buying or signing up etc. you’re leaving money on the table. CRO increases the chance of people visiting the site purchasing something, signing up etc.
  • When your conversion rate increases, you can then afford to advertise in other media (online and offline), which makes your company much more robust.
  • If your competitors aren’t doing it already, they will be soon and there’s an enormous advantage to being in the lead rather than lagging behind. Once you’re ahead, you gain money; if you’re always playing catch-up, you’re losing money.

Limitations

Top Tips

  • Simplify your landing pages – the simpler the landing page the easier it is for the user to navigate the page and are more likely to make a purchase, sign up to something etc.
  • Know your target demographic – If you are targeting users who are interested in cash advances, then your strategy might involve studying how users with medium income interact with your website. If potential customers lack trust in your brand, introducing trust-establishing mechanisms such as guarantees, FAQs, policies, customer care and a clear and consistent brand identity will surely help to build that trust.
  • Once you have identified what drives your users into becoming customers, focus on those things and only those things.
  • At no point during the conversion rate optimisation process should you be asking customers for information that you do not actually need. This can create a trust issue.
  • The most important aspect of conversion rate optimization is the call to action. A good call to action not only prompts the customer to take action, it also enables them to do so.

Glossary
Conversion rate – Proportion of visitors to a site, or viewers of an advert, who take an action such as registration or checkout.
Call to action (CTA) – A banner, button, or some type of graphic or text on a website meant to prompt a user to click it and continue down a conversion funnel.
Landing page – A destination page where a user clicks on an ad or another form of link from a referring site. It can be a home page, but more typically and desirably a landing page is a page with a message focused on the offer in the ad.

Key sites/blogs
http://creativethirst.com/blog/what-is-conversion-rate-optimization/
http://www.conversion-rate-experts.com/reasons-to-get-obsessed-with-cro/
http://unbounce.com/conversion-rate-optimization/mega-conversion-tips-roundup/