Facts Regarding Conversion Rate Optimization

The term Conversion Rate Optimization or CRO in short, refers to the systematic procedure used to improve the percentage of those who visit a certain site and carry out a desired action, be it to fill out a form or to purchase something. The CRO process is about getting a basic idea about the user movement patterns on a particular website, the kind of actions they perform, and also the reasons which prevent them fulfilling your objectives or goals. We at Server Center, make use of different conversion rate optimization strategies to serve our customers in a better way.

What Do You Mean by a Conversion?

The word ‘conversion’ is used generally for a visitor who fulfills a site goal, be it related to anything. Suppose if your use your website to promote products, the main goal as concerned with the user is making a purchase. The main goal is also termed as macro-conversion. Further, there are also smaller conversions happening even before a user is done with a macro-conversion like for example, signing up to receive emails or creating an account. These smaller conversions are known as micro-conversions.

What Do You Mean by a Conversion Rate?

The conversion rate of a site refers to the number of times a particular user completes a certain goal divided by the total traffic of the site. If a user is able to convert in each visit like purchasing a certain product, you are required to divide the number of conversions by the total number of sessions (the number of times a particular user visits your site). Suppose if you plan to sell a subscription, divide the number of conversions by the total number of users. The CRO process happens after a certain visitor lands at your site. This is totally different from the conversion optimization related with SEO or paid ads in which the focus is on the click-through rates derived from the search results or the keywords which generate the site traffic.

How to Calculate a Conversion Rate?

Suppose if you own a site called Toyland. A user who visits this site can make a new purchase on each session. Here the goal is to optimize in such a manner as to generate maximum number of purchases. If a user visited the website three times, it would count up to three sessions naturally, thus creating three opportunities in order to convert.

Here you can examine the user behavior in these three sessions:

  • Session 1 : No conversions happens as the user was just familiarizing himself with the content of the site.
  • Session 2 : The user buys a new toy which is considered as a conversion.
  • Session 3 : The user returns to the site and buys another product and this is treated as another conversion. However, even if he purchased two items, these are considered as single orders each and counts as a single conversion.

To calculate the conversion rate, you can consider the number of unique purchase orders and divide it by the total number of sessions. For this particular user, he converted two out of three times when he visited the website.

Here, Unique orders = 2
Total sessions = 3

So 2 orders = 66% conversion rate

3 sessions

To determine the conversion rate for your site, you can divide the unique orders by the total number of sessions.

Suppose if Unique orders = 500
Sessions = 5,000

So 500 orders = 10% conversion rate

5000 sessions

In another example, let us consider a monthly subscription for Toyland’s Baby Development Package. In this case, the subscription is offered for the monthly delivery of Baby Development Package. Here, a user may visit the site several times, but once he buys the subscription, he would not convert further.

Here we can analyze the behavior of this user.

  • Session 1 : The user visited this site for the first time to know in detail about the service. Here there is no conversion.
  • Session 2 : This user subscribes the monthly Baby Development Package and this is essentially a conversion.
  • Session 3 : The user returns again to the site to read blogs and other interesting articles and browse the site further.

Here Unique Orders = 1
Unique Users = 1

So 1 order = 100% conversion rate

1 Unique User

In order to find out the website conversion rate, you can have the number of unique orders divided by the number of unique users.

Suppose Unique Orders = 500
Unique Users = 2,500

Different Strategies for Conversion Rate Optimization

Each and every business seeks innovative methods to optimize their website and thus attain higher conversion rates. There are many strategies available for this purpose which have proven successful.

  • Influencing and Compelling Users by Making Use of FOMO and Social Proof
    FOMO refers to ‘Fear of Missing Out’ and this aspect is in fact responsible for driving many actions users perform online. Further, FOMO compels the users to check Facebook timeline or carry their devices wherever they go. However, this concept is not a new one, and it could be applied in almost all areas of life such as you could miss out living in a better city or a better home, or you could get a better job, and many such. Further, it is a powerful strategy which could be implemented in the landing page like for example, giving an exclusive offer for a particular period of time or informing users that they are missing out something if they did not perform a specific action in a stipulated time. You can further apply this strategy in the body copy as well as Calls-to-Action (CTAs) also like for example, for how long can somebody take advantage of a particular offer or how many products are remaining before it runs out of stock.

    Another strategy is to use social proof to bring other people like celebrities, generic users, etc., in the picture and use their social influence to compel users to attain conversion goals. Further, you can include photos, video testimonials, etc. in specific pages for this purpose.
  • Using Lead Generation Forms
    Lead generation forms are considered as a key component which influence the conversion rate of a website. In fact, these are one of the crucial points of your purchase funnel as they serve as the final point of interaction which separate your leads from non-leads.
  • Using Videos to Attract Users
    Videos are no longer considered as an upcoming marketing strategy. In fact, they are already here in the game and serve as a powerful way to create brand awareness and build strong relationships with the customers as well as prospects in the entire marketing funnel. Moreover, the ads presented in video format tend to increase the purchase intent by a whopping 97%. Including a video in your landing page can help the consumers to learn in detail about your brand and influence to a great extent in making a buying decision.
  • Decreasing Bounce as well as Exit Rates
    Analyzing and understanding the bounce and exit rates is quite essential because in both cases, a considerably higher index of both these aspects indicate that there is a lack of user engagement with regard to the website. As per many recent reports, over 46% of the Internet users make use of their mobile devices to surf the net. This implies that if you ignore the aspect of mobile experience with respect to the site, it can have a greater impact on your website and ultimately on your business in a negative way.

In short, it is for the business owners to decide which conversion rate optimization strategy works best for them.

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