Conversion rate optimization is all about optimizing and improving a particular landing page, website site or web page so that it can convert a higher percentage of the visitors to customers. So, a big part of the process is deeply exploring your customer journey and figuring out the issues and making their experience a lot better. Once you do so, you’ll have an improved and tailored customer journey.
Keep in mind that conversion rate optimization will require a lot of learning and you’ll have to commit the time and energy to do it. However, once you do so, you will enjoy a much higher conversion rate.
Calculating Conversion Rate
In order to get started calculating your current conversion rate, you will need to know how many visitors you have as well as how many conversions you currently experience. So, once you have these numbers, you will have to divide the total number of conversions by the total number of visitors that you have for the same time period and then multiple by 100. This will give you your current conversion rate as a percentage.
Now, the most important conversion rate is your conversions into real customers, however, keep in mind that there are also micro-conversions. Some examples of micro-conversions include email sign ups, followers on your business social media pages etc.
We have just looked at exactly what conversion rate optimization as well as how to calculate it. So, we will now dive into the importance of CRO and the benefits to your business.
1. Gain a better understanding of your customers
As you know, the more knowledge you have, the more power you have. Therefore, before you start doing conversion rate optimization, you should have a better understanding of your customer base. You should know exactly who your customers are, how they interact with your business as well as the issues and problems they have throughout the customer journey that prevent them from turning into paying customers or any other type of conversion.
Your CRO strategy should be based on data since this will help you to make segmentations that are more conversion friendly. These should be created according to your customer, past purchases, potential future actions, lifecycle state and more.
2. Reduce the cost per acquisition and obtain more customers
The point of CRO is to assist visitors to your store and ensure that they can easily find what they want so that the buying process is sped up. When you have a greater understanding of your customers, you’ll be better able to customize their experience and guide them to make essential purchases.
Additionally, conversion rate optimization is based on efficiency. Once you are committed to getting people to visit your website, you should be focusing a lot on CRO so that you make the most out of the traffic you have and convert as many people as possible into customers. When customers have a better experience, you’ll be able to get more customers from the existing amount of traffic you currently have. This will naturally reduce your CPA or cost per acquisition.
3. Improve SEO
SEO and CRO work extremely well together and you shouldn’t have to choose one over the other. Keep in mind that search engines are constantly getting smarter and Google has indicated that they do pay attention to user behavior when ranking web pages. Therefore, if your site offers a significantly better user experience than other sites, then you will likely rank higher in the search engines. Therefore, when you work on CRO, you will not only experience higher conversions but you will likely get an SEO boost as well which would mean more traffic.
4. Improve customer lifetime value
As mentioned previously, CRO can help you to make a customized customer experience for each of your visitors and customers. You should also create segmentations so that you can show loyal customers affection through customized product recommendations, welcome back greetings, deals and discounts only available to past customers, reminder emails etc. When you work on optimizing your customer journey, it will certainly help your business to get more loyal customers by catering to their needs and ensuring they feel cared for and special.
As you can see, CRO has many benefits. Get in touch with this CRO agency in London. It will definitely help you to get more customers, better understand your customer base, improve your SEO, improve your business’s customer lifetime value and reduce your CPA.