Suppose you're a small business looking to grow your company. In that case, you have probably read about conversion rate optimization (CRO). CRO involves a lot of testing and takes time and resources, so you might be wondering if investing in a CRO strategy is worth it.
*Updated 8/20/2024
In this article, we'll discuss how CROs can benefit your business. But first, let's see how you can calculate a conversion rate.
What Is A Conversion Rate And How To Calculate It?
A conversion rate in marketing is the percentage of website visitors who complete the desired call-to-action. Examples include subscribing to a newsletter, filling out a form, or buying a product.
Calculating a conversion rate for sales is an essential metric for your business, but don't forget that other conversion rates matter.
For example, the conversion rate for your newsletter subscription is crucial because it helps you objectively gauge the effectiveness of your marketing efforts.
And your newsletter subscribers might ultimately convert into paying customers, so optimizing the conversion rate for subscriptions means more sales in the long run.
To calculate a conversion rate, divide the number of conversions by the total number of visitors and multiply by one hundred.
For example, if you had five hundred visitors and fifty conversions, your conversion rate would be fifty divided by five hundred, then multiply the result by one hundred. In this case, the result is ten percent.
Now that you know how to calculate a conversion rate, let's look at conversion rate optimization.
What Is Conversion Rate Optimization?
The goal of the conversion optimization process is to make it easier for website visitors to complete the desired call-to-action.
There are many ways to improve your conversion rate. Examples include testing different versions of your website or improving copywriting. If you have a contact form on your website, you might test different versions to see which one results in more submissions. Try our contact form plugin to make testing easier!
Many factors influence a conversion rate, so it's vital to test different aspects of your website to see what works best for you.
Besides improving the conversion rate for specific actions, you can also enhance the overall user experience on your website, helping to keep visitors engaged and increasing the chances that they'll complete the desired action.
What Are The Benefits Of Conversion Rate Optimization?
The benefits of CRO include an improved user experience, increased understanding of your customers, lower customer acquisition costs, and better website search engine optimization (SEO).
Before we discuss these in detail, keep in mind that they are the not-so-obvious benefits of CRO. The most apparent use of CRO is better business and more sales.
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Improved User Experience
One of the main benefits of conversion rate optimization is improved user experience.
When potential customers visit your website, they want a smooth and straightforward encounter. If they have a terrible interaction with your design, they're likely to leave your website and never return.
Conversion rate optimization can help improve the user experience by making it easier for visitors to complete the desired action. For example, if you test different versions of a contact form and find that one results in more submissions, you know that this is the form that provides the best user experience.
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Increased Understanding Of Your Customers
Conversion rate optimization can also help you understand your customers better.
When you test different versions of your website or copy, you can see which version results in more conversions, telling you what your customers want and how they want it delivered.
This knowledge can go a long way in helping you design and execute marketing strategies for your business.
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Lower Customer Acquisition Costs
Another benefit of conversion rate optimization is lower customer acquisition costs.
When you improve your conversion rate, you can bring in more customers for the same amount of money, getting more bang for your buck with your marketing efforts.
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Better Website SEO
Conversion rate optimization can also help improve your website's SEO.
When optimizing your website for conversions, you can rank higher on search engine results pages, which means that more people will see your website when they search for related keywords.
Now You Know The Benefits Of Conversion Rate Optimization!
Conversion rate optimization is a process that can help improve the user experience on your website, increase your understanding of your customers, and lower customer acquisition costs.
It also improves your website’s SEO, helping to drive traffic. All of this ultimately results in more sales and higher profits.
You might be confused about implementing CRO as a new business. Hiring a digital marketing agency for your small businesses is an excellent way to optimize your conversion rates without investing too much time. After all, you have a business to run.
