Having the ability to convert leads into paying customers is one of the most important skills in the digital marketing industry.
Businesses no longer focus only on sending traffic to their website but also focus on how they can best make their website users take an action that they want, this could be either to make them purchase something, sign up for an email or any other activity the businesses want the visitors to do.
The need to get the most out of your website traffic is what is known as conversion optimization. Although traffic is an essential part of digital marketing, it doesn’t end there; you need to convert your website users into paying customers.
This is where conversion optimization comes in for you; it helps you achieve your goals with your website visitors. In this guide, you’ll get to know what conversion rate optimization entails and how to use it to boost your business.
What is Conversion Rate Optimization?
Conversion is simply making your website visitors complete a task that you intend to achieve. Conversion rate optimization may sound complicated, but it means improving website elements ( designs, contents, etc.) to make your website visitors more likely to execute the goal you want to attain.
When you have a business website where you offer some kind of product or service, your aim is to make your visitors patronize your products or service. Conversion rate optimization is, therefore, a series of steps and processes that makes you maximize the number of website visitors that convert into customers.
Why is conversion rate optimization important to businesses?
Conversion rate optimization benefits businesses in a lot of ways, among which include the following:
1. To better understand your customers, one of the reasons why conversion rate optimization (CRO) is important, is because it makes you understand the needs of your customers, you get to know what they want so you can find out how to satisfy those wants.
Successful businesses are problem solvers; they know what their customers want and give them just that. Conversion rate optimization helps you know your customers better; that way, you can make better decisions to optimize your website and make it easier to complete your goal.
2. Increases revenue
It is evident that businesses want revenue, which is why they are optimizing their site in the first place. So conversion optimization increases your return on investment (ROI) by helping you convert as many of your website visitors into customers.
3. Improves your user experience
One of the goals of conversion optimization is to make sure your website engages with the user and makes the process of navigating your site more fun and less stressful, which may be caused by a lot of unnecessary or conflicting website elements.
It makes sure they don’t have any difficulty accessing your website and navigating around it.
4. Reduces the cost of customer acquisition
Conversion rate optimization is not necessarily about increasing your website traffic, but about converting a more significant percentage of the number of visitors, you already have.
If, for instance, you are getting a conversion rate of 10% from 1000 visitors, conversion optimization looks to improve the conversion rate to 20%. It saves you the costs of having to acquire more website traffic and instead focuses on getting the most out of your present visitors.
5. Builds trust
If you follow conversion rate optimization best practices, your website looks more professional, which builds trust with your website users. When you gain the confidence of your website users, it makes it less hard to convert them into customers.
How Conversion Rate Optimization is calculated
To calculate conversion rate optimization, you need to divide the total amount of website conversions with the total number of website traffic and multiply the result by a hundred. This gives us the result of the website’s conversion rate in percentage.
The formula is given below:
Total Conversions/Total Website Traffic X 100 = Conversion Rate
Conversion may mean a sale, sign-ups, downloads, registrations, or any other action as defined by you. To better understand this, consider this example, suppose a website has 14500 monthly traffic with 2,850 conversions, it means the site has a 19.7% conversion rate.
Important Conversion rate optimization metrics to track
1. Number of website traffic
To determine how to optimize better the conversion rate of your rate, you need to know the total amount of website traffic that it receives. This will give you an insight on how you could increase your conversion rate with the number of visitors you get.
2. Sources of traffic
Traffic sources are another conversion metric to keep track of, and you must know where most of your traffic comes from to double down on it.
To optimize your site, you need to keep track of your traffic source, so you can put more effort into getting even more traffic from sources that sends the most users to your site.
3. Pages visited
Keeping track of pages visited by users is a vital metric to monitor because it can tell you why your users visited such pages. Track pages with the most visits to understand what they like about such pages so you can replicate the same with other pages.
4. User Interactions
This means tracking and analyzing how website users behave on your website. You can use some tools to record how your website visitors interact with your website, such as the sections of the webpage they view the most, if they read your posts to the end, or if they are having trouble navigating your site.
5. Revenue Per Visitor
This metric tells you how much you make from the visits to your website users. To calculate it, simply divide the total revenue earned by the total visitors on your website.
6. Bounce rate
Bounce is one vital conversion rate optimization metric to track because you are not going to achieve your goal if website visits leave almost immediately when they visit your website. To get them to convert, they need to stay on your website a little more longer.
This is why the bounce rate is a crucial metric to track in conversion rate optimization (CRO).
7. Exit pages
Sometimes you want to know at what page your users leave your website; you need to know these things so you can find out what might be making them exit your site before they complete the action you want them to take. Exit pages are one conversion rate optimization metric that pinpoints a couple of things you can improve on, to optimize your website.
Steps to Conversion rate Optimization
To optimize your website for more conversion, there are steps and processes you need to follow to achieve your conversion goal.
Here are four steps to conversion rate optimization (CRO):
1. Know your customers
This simply means getting to know who your business appeals to, in other words, define your target audience. You need to understand their needs and how you can meet up with those needs, know their demographics and profile.
This means researching your target audience to build an effective conversion funnel, with a proper understanding of your target audience, you can create an effective conversion path for your website.
2. Define your Conversion Goals
To define your conversion goals, you need to answer the question, “What do I want to achieve from my website users.” This lets you know what metrics to track that will allow you to achieve your goals, with those metrics, you can improve on your conversion funnel to convert better.
3. Create a conversion funnel
A conversion funnel is a path that your website visitors go through before they take that action you want. So after you must have defined your conversion goals, you need to create a conversion funnel, and you can create a conversion funnel otherwise known as sales funnel by following the simple process below:
A. Get a traffic source
To create a conversion funnel, your target audience needs to be aware of your products first. You need to attract your audience to your funnel; that is why you a traffic source. You can create a traffic source from search engines through Pay-per-click advertising and organic search or social media.
B. Build customer interest
Getting your audience from your traffic source is just the first part; you also need to build your customer's interest in your product or service. This is usually done through the content on your website. For this, you need excellent copywriting skills to make them interested in whatever you have to offer.
C. Create a desire
After building your customers’ interest, you need to create a desire for your product or service. To do achieve this, let them know what your product/service helps them to achieve and how it can solve their problem.
D. Encourage Action
This is where your customers complete the action you want. There is little you can do as to whether they complete the action you want them to, but you can maximize the chances of this if you’ve optimized (B) and (C) above; this is what conversion rate optimization aims to achieve.
E. Analyze Results
Here you analyze your results while keeping an eye on important conversion rate metrics. Check out for things that are working well and areas where you can improve to boost your conversion. You can analyze your results by using conversion rate tools listed in the section below.
F. Perform A/B test analysis
A/B testing is a way to quickly check what might influence your web visitors to perform a conversion action. A/B testing has to do with creating two versions of your website to see how your web visitors react to a change in one element of a website version in relation to the other version. Consistently performing A/B tests can help you improve your website or landing page for more conversion.
Conversion Rate Optimization Tools
There are a lot of CRO tools you can use to optimize your conversion rate. Here are five tools you can use to maximize your conversion:
Hotjar is a CRO tool that allows you to records the behaviors of visitors who come to your website. This tool gives you a lot of insights to see what your users do when they are on your website.
It also shows you heatmaps to tell you the areas where your website visitors focus on the most, with these video recordings you can find out if they have problems going around your site. Hotjar is also a feedback tool that helps you helps you collect feedback from your website visitors.
This feedback would greatly assist you in making your website better for your users, which might result in more conversions.
Survey monkey, just as the name suggests, is a tool for taking surveys. You can use it to collect surveys on your website visitors to understand better what they want and don’t, which can be used to optimize your site.
Unbounce is a landing page maker that you can use to create pages for your products or services. With Unbounce, you can also create sticky and pop up bars to capture leads; you can create any page you want from a lot of templates if you don’t want to make one from scratch.
This is a tool for testing the experience of your website users. With this tool, you can create user tests and get the opinions of your customers, employees, or any other persons. Your website users get to engage with you through live conversations, recorded videos, or live videos on what they think about your website.
They can identify areas where they like and areas they think needs improvement. This conversion rate optimization tool can give you a lot of insight into how to optimize your website.
Visual Website Optimizer (VWO)
VWO is a tool for split-run testing, it can be used for a/b tests to ascertain what works and what doesn’t. With VWO, you can carry out experiments to test how a certain element on your website improves your user experience and conversion.
This tool gives you ultimate control over your website and allows you to run A/B tests, Multivariate tests, and split URL tests. You can also perform session recordings, surveys on your webpage, and heatmaps to optimize your website further.
This tool provides you with a platform where you get the opinions of many professionals about your website ranging from designs to marketing questions. You can find people who fit into your target audience to give you their thoughts about your products and site.
Helio allows you to perform surveys and tests from its audience; it’s a testing platform that’s sure to help you optimize your site for conversion.
With conversion rate optimization, you can achieve a lot on your website. Many businesses get traffic to their website but find it difficult converting them into customers. With conversion rate optimization processes, tips, and tools listed in this article, you can growth hack your business by increasing your conversions.