What is CRO and how it can help your business?
Conversion rate optimization is all about online marketing. What is it and how it can revolutionize your business?
Before we dig deeper, we need to know what does “conversion” and “conversion rate” mean.
Conversion is the desired action you want a visitor to take on your website. It can be anything: completing a purchase or submitting an email, it is anything that turns the visitor to a customer or lead.
Conversion rate is the percentage of website visitor who takes the desired action. You can mathematically calculate it as:
For example, If 100 people came to your website, and 20 completed a purchase than your conversion rate is 20%
Conversion rate optimization (CRO) is the system of increasing the percentage of people who take the desired action on your website.
It’s a process of understanding how users move through your website, what steps they take, why visitors abandon and then fixing that. Optimizing the site will allow you to make more sales and make your customers happy.
Traditionally, CRO process consists of these steps:
1.Research and Google Analytics setup
On this step, we need to start tracking everything that will help us to find “money-leaking” places on the website and make a list of ideas for improvement in the future. Also, on this step, key business metrics should be determined (micro- and macro-conversions).
You need to find the information about buying pattern, a psychological factor that determines the user’s actions.
People can buy a product to overcome a fear or pain, to fulfill their desire or a dream to come true. This is why you should know the purchase intentions, the psychological barriers they have, what drives them to convert, and what stops them from doing that.
By using customer behavior tools like session recording, heatmaps, interview feedback, analytics, customer surveys you can find what features are influencing user decisions, answer the questions “What” and “Why” users are acting in a particular way.
Based on the information you have collected from the business, website, customer research in step 1, what would you like to test? Go back to that information and look for the customer objections and check which ones are most common among them. For example, if your customer lacks confidence, then you can add a hypothesis that can add more trust.
A well-structured hypothesis is a great way to optimize the process. Here is an example:
“Adding testimonials on my product pages will increase 10% more conversions because it will increase customer confidence when they make buying decisions.”
Based on this hypothesis, you will make the necessary changes to your pages. The new pages are called variations.
The primary objective of the test is to see whether or not the new variation will generate better conversions.
To make a well-structure hypothesis, you need a clear purpose and proof which can be backed by data. You need enough data to support testing reason. Make a hypothesis as comprehensive and transparent as possible.
3. A/B testing
A/B testing means you run a test on several variations to see which performs better.
Let’s take the hypothesis we mentioned above. Now you will have half of your audience pages with testimonials and a half without testimonials. After running the test compare which variant performs better. The variant that generates more conversion is the version you need to implement in your conversion optimization strategy.
There could be several variants you can implement on your website. The most important are Headlines, Sales copy and product descriptions, design and layouts, images and graphics, call-to-actions and forms.
However, you can do A/B test several elements except the ones mentioned above to check which better fits your goals.
4. Implementing the changes
This is the process where you will decide if a particular test is successful or not. The way it is done is you take all the data you have collected during the test, then analyze if this variation was winning one or if it has failed?
When your test is successful, then what’s next?
Talk to your engineer and designer to implement the changes.
Analyze the test data to check if you can optimize further.
Implement what you have learned in next optimization efforts.
When your test lost, you need to check a few things.
Analyze the research, check the hypothesis and try to find loopholes.
Study your test data and gather more insights.
After analyzing the data, reconstruct your hypothesis.
Go back and test again.
Conversion optimization is not a once-done process is an ongoing process which needs constant analysis. Having a well-planned, well-implemented CRO strategy will help you locate areas of improvements which will improve your conversions and sales and help you increase revenue.
ROCKET CRO LAB is a full cycle ecommerce CRO agency.
Our works include health checkup of analytics setup, heuristic analysis, user experience research, competitive analysis to understand your position against competitors, develop Heatmap and Scrollmap reports to find where your customer is finding the interest and develop insights based on the data. After that, we do data backtesting. Then our team develops well-structured hypotheses, which are based on user behavior and start A/B testing based upon data and insights gathered in the research phase.
We verify that goals are being achieved, the conversion is being tracked correctly, ensure error frees tests. We check cross-browser testing, cross-device testing and multi-page testing to minimize the errors.
As a ROCKET CRO LAB client, you can significantly improve your conversion rate without adding extra work for your web or marketing team.