From SEO to social media, the end goal of all of your digital marketing strategies is to convert your audience into paying customers. But for every $92 that companies spend on customer acquisition, just $1 is spent on conversion rate optimization. With competition for consumer attention at an all-time high, making the most of the traffic you generate from your marketing channels is vital. In this post, we’re going to cover the basics of conversion rate optimization, why it matters, and how you can use it to generate more sales and leads for your business.
What Is a Conversion Rate?
Conversion rate is the percentage of visitors who complete a desired action. A conversion could be an opt-in to your email list, a download of a lead magnet, or the purchase of a product or service.
To calculate conversion rate, you need to divide the number of conversions generated by the number of visitors and multiply that number by 100 to work out the percentage.
For example, let’s say that you use a paid search to drive 200 visitors to your product page. Of those 200 visitors, 7 people convert and buy the product.
(Conversions) 7 ÷ 200 (Visits) = 0.035
0.035 x 100 = 3.5% (Conversion Rate)
Calculating conversion rate is important because it shows you how well your web pages convert traffic into tangible business results like sales and leads.
What Is Conversion Rate Optimization?
Conversion rate optimization (CRO) is the process of making incremental improvements to generate more conversions from the traffic you drive to your web pages. It can include significant changes to your offer and page design or minor tweaks to your copy, CTAs, and more.
You’ve already worked hard to get people on to your site. By optimizing your web pages for conversions, you can get more value from your traffic and lower your customer acquisition costs.
What Factors to Consider When Working On CRO?
The CRO process should be a repeatable strategy that you implement across your website. Put yourself in your visitors’ shoes and take a close look at your site.
- Are the graphics clean and on-brand?
- Is it easy to navigate?
- Are your CTAs clear and direct?
- Is your page speed tolerable?
Create a checklist that you can use to analyze each page of your website. You can also use heat maps, analytics, and exit-intent surveys to identify problem areas and barriers to conversion.
How Can I Get Started With Conversion Rate Optimization?
Identify What Could Be Optimized
The first step is to determine what you are trying to optimize. Do you want to get more lead magnet downloads, more sign-ups, or more sales?
You need to establish KPIs so improvements can be tracked and measured.
Start your CRO process with the pages that get the most traffic. These provide a big enough sample for testing and the most significant opportunity to impact your business. You can use tools like Google Analytics or Yandex to gain insight into your high traffic pages.
You should also prioritize your high-value landing pages. Improvements to these pages can make a significant impact on your sales goals and KPIs.
The homepage is usually the most visited page on your website and delivers a vital first impression to potential customers. It’s a great place to start with conversion rate optimization.
Your homepage needs to answer the following questions:
Headline: who are you?
Subheading: why should I care?
CTA: what should I do next?
You can use chatbots to improve the user experience and answer customer queries to break down barriers to conversion. It’s a cost-effective way to handle customer requests, with AI-powered chatbots able to answer 80% of basic questions.
Your Services/Product Page
Your service/product page is usually the last stop on the path to conversion. CRO here can involve tweaks to the design of your page, how you show your pricing, and how you communicate the benefits of your product or service.
- Is your USP clear?
- Does your copy address the pain points of your target audience and highlight your solution?
- Is it clear what users should do next?
If you provide a subscription service, you can differentiate between monthly and annual payment terms to cater to different buyers. There’s also an opportunity to increase the average order value by incorporating up-selling and cross-selling bundles.
The sole purpose of a landing page is to convert visitors. Your landing page should be laser-focused on getting users to take action.
You can increase your landing page conversion rate by:
- Restricting site navigation
- Focusing on a single offer
- Removing social buttons
- Adding social proof
The goal is to remove distractions and frictions that get in the way of a conversion. Take a data-driven approach to your CRO and utilize A/B testing for your landing pages. Minor changes can make a difference to your conversion rate. A HubSpot A/B test study showed that changing the color of a CTA button from green to red resulted in a 21% increase in conversions.
You can also create unique landing pages for certain segments of your audience to maximize the relevance and value of your offer to different users.
Blog posts are often overlooked when it comes to CRO. But your content is often the reason why a user first visits your site.
Generally, there are two conversion goals for blog content:
- To get users to visit a sales/landing page
- To get users to opt-in to your newsletter/email list
You can increase blog post conversion rates by including subtle CTAs. Once your content has educated the reader about a problem, highlight your product as a solution and link to your sales page.
Another way to convert your blog traffic is to provide teaser content. You can use your blog to attract your target audience to your site and offer a more in-depth and actionable free lead magnet in exchange for a user’s email address.
You can use an exit-intent pop to promote your lead magnet or product or service to users that click away from your site. While pop-ups can be annoying, they can also be very effective for generating conversions if used sparingly.
Why Should My Business Implement CRO?
Without CRO, you’re blindly driving traffic to your website and hoping that you will get new leads and customers. Even with a super-effective content and PPC strategy, you’re leaving money on the table if you don’t optimize your website for conversions.
CRO is about making the most of your traffic and turning website visitors into customers. You can find out more about the likes and dislikes of your customers and turn your website into a revenue engine.
The biggest challenge for marketers is getting a potential buyer to commit and become a paying customer. It’s much harder and more expensive to attract a new customer than to keep an existing customer. By successfully implementing CRO, you can maximize the ROI of your marketing spend and reduce your customer acquisition cost.
There are plenty of CRO tips and tricks, but what works for you will depend on your brand and your audience. The most critical CRO strategy is data-driven testing.
You need to find out what resonates with your customers and what drives conversions for your business. With each incremental improvement, you’ll see your conversion rate increase and your business performance improve.
If your website needs a conversion rate boost, schedule a free consultation call with the marketing pros at Ogno.