Every business works toward the desired outcome. Some businesses want more sales, others want more website visitors, and many others have multiple goals.
How can all businesses create one method to measure this success? They can use conversion rate optimization or CRO. CRO is a process that aims to increase the likelihood of a specific outcome or goal.
CRO helps you track your customers and your progress, and what you can do to ensure they take the specific action you desire.
To use CRO, you’ll have to understand conversions and the different CRO methods you can use.
What is CRO, you ask? Continue reading to understand how your business can benefit from CRO.
What Is CRO?
Before you utilize the benefits of CRO, you must fully understand what it is. We already defined CRO. Now, we’ll take a closer look at conversions and how to optimize your marketing and sales strategy to accomplish your goals.
A conversion is a term that signifies an action and how that correlates with your goals.
For example, let’s say you’re optimizing a landing page.
Conversions are how many website visitors click on your landing page. You can compare this to how many visitors are visiting your landing page as opposed to other pages.
You can also use conversions to test out specific landing page marketing methods and viewing which strategy works the best.
Every business has different goals. But each fits one of two types of conversions: macro- and micro-conversions.
Macro-conversions signify an end result from the customer journey. This includes purchasing a product, subscribing to your website and/or social media, contacting your company, buying into a service, etc.
Micro-conversions are smaller goals that still prove you’re generating leads. Examples include subscribing to an email list, creating a checkout account, and clicking around on your shop and different products.
To ensure the success of your conversions, you’ll need to use a conversion rate method.
A conversion rate is a way to measure the effectiveness of a goal. It’s usually calculated using an equation, though there are different methods to calculate this rate.
In short, you compare your customers’ actions by your goal. Conversion rate can also be applied to a customer’s action versus your customer reaching your goal — for example, how many times they visit your website before buying a product.
There are different ways to utilize conversion rates for other areas of marketing such as SEO and sales.
The Benefits of CRO
Tracking your conversions can bring a myriad of benefits to your company. This includes:
- Improved ROI
- Better customer insights
- Improved UX
- Scaling your resources and your customers
- Better use of the sales funnel
CRO helps you better understand your customers and what you need to do to improve their experience and achieve your goals. You’ll accomplish your goals as well as receiving a myriad of smaller benefits.
Different CRO Methods
Now that you know about CRO and the benefits, it’s time to start implementing a CRO strategy. Here are different ways to analyze conversion rates.
The Equation Method
This is one of the most common methods. You take the rate of the customer actions and compare them to your goal.
Let’s say your goal is a common one — more sales. And let’s say you’re tracking a customer and how many sessions and website visits it takes to achieve a sale.
For one customer, it took them three different website visits to buy a product. Divide the sale (1) by the number of times they visit your website (3). You get 0.33, which means your conversion rate is 33%.
To increase the conversion rate, you’ll have to find a way to better generate leads. You could also make changes to your website or marketing strategy to entice leads to make a sale sooner.
The People Method
Is math not your thing? If you’re a better communicator, then try what is called “the people method.” In short, you’re tracking your conversions by reaching out to your customers.
This helps you identify potential problems and helps you focus on where you need improvement.
Customer surveys are a prime example. You can also test methods to ensure your business is customer-friendly. An example is testing the UX quality of your website.
The Analytics Method
If you still prefer working with numbers, try the analytic method. This helps you track conversions by looking at raw data. This method provides answers about your customers and their actions.
The analytics method has the power to identify who your customers are. You can view their analytics by knowing where they live, what language they speak, their gender, nationality, etc.
In addition, quantitative analysis can show different behaviors. You can see how users engage with your website, where they enter, what devices they use, how they found your website, and if they abandon the sales funnel.
Implementing a CRO A/B testing strategy is beneficial if you plan on making changes or are trying out a new strategy.
For example, let’s say you’re promoting a specific product and are using landing page optimization to draw customers to the product.
You try two different methods: a Google or social media advertisement and landing page SEO. You’re trying to see if SEO improves your conversion rates better or if ads show more results.
You conduct A/B testing and test the conversion rates of the two methods in order to know which marketing strategy is worth your focus and investment.
When implanting a CRO strategy, many marketers get into common mistakes. This includes:
- Following your competition
- Guessing or using your gut instinct
- Only trusting one person’s opinion
In short, CRO is data-based. No matter the method you use, all successful CRO strategies need to use data to test customer behaviors and your goals. You should also make any changes based on your data.
Invest in a Video-Driven CRO Strategy
What is CRO? Conversion rate optimization identifies your goals versus your customers’ actions. You can view these rates to know where you’re successful and where you can improve.
Did you know video marketing is at its peak? You can implement a video marketing strategy to improve conversion rates. Dubb offers a video communication platform to drive sales with video.
Click here for more information.