Conversion rate optimization (CRO) is the process of increasing the percentage of visitors who complete an action. Conversion means something different for different businesses, as what one company wants from a website visitor may not be the same for another, but the principle is the same. CRO requires an understanding of how people use your website, what they do, and if there are obstacles preventing them from converting as you would like them to. For eCommerce sites, this conversion is most likely to be the act of completing a purchase. Here, we take an introductory look at what conversion rate optimization means for eCommerce sites.
What Is A Conversion?
A conversion is the completion of a goal on a website, and in the case of eCommerce sites, that means that a visitor has purchased a product or service. This is the main aim of the site and is known as a macro-conversion, but other businesses may be aiming for visitors to subscribe to a mailing list, donate to a charity or request a quote. There are, however, smaller conversions which should not be discounted. For example, on an eCommerce site, a user might not make a purchase on their first visit, but they may sign up for a mailing list, create an account or even add a product to the cart and then exit the site. These are all positive steps that indicate this user may make a purchase in the future and are known as micro-conversions.
CRO for a website is not the same as CRO for SEO or pay-per-click (PPC) advertising, which is focused on how many people click through to your website.
How to Work Out Conversion Rate
Simply put, your eCommerce website’s conversion rate is the number of conversions divided by the total sessions, i.e., the number of times a unique visitor came to the website. For example, if you had 1,000 unique visitors in one day and 50 made a purchase, your conversion rate would be 50 / 1000 = 0.05%. You should always base CRO work on data and facts rather than speculation, which is where website testing and analysis companies like digivante.com can help. To improve conversion rates on your eCommerce website, you need to understand who is visiting your website, how they are using it, and where they are exiting the site.
Benefits of Conversion Rate Optimization
CRO obviously has a positive impact on your sales funnel, but does it have any effect on your SEO performance, visibility, or traffic? The answer is yes, CRO can have a significant impact on your business’s performance in the following ways:
- CRO helps you to improve your understanding of your audience, which can inform the language you use in your website CTAs.
- A better conversion rate means your business is working more efficiently, as you will be making more of the leads you have without investing in more marketing.
- You can scale your business without growing your audience, as you can convert browsers to buyers.
- Enhancing user experience (UX) is essential when ensuring that visitors not only buy from you, but that they trust you, feel positively towards the brand, will recommend to friends and family, and will return.