What is a conversion rate?
A conversion rate is the number of visitors to a website or to a page on a website who perform the desired action expressed as a percentage of total visitors.
Let’s assume you have a website and you want to sell some products. You would like that your website visitors buy your product, right?
Well, then you need to start thinking about how many from all your visitors actually do so. That percentage is called the conversion rate.
So, if you have 100 visitors and three sales, then your conversion rate is 3%.
How to calculate the conversion rate?
You can calculate the conversion rate using different methods. The simplest way is to divide the number of visitors who have performed the desired action by total visitors and multiply by 100 to get a percentage.
If, for example, five people out of 100 buy your product, you have a conversion rate of 5%. If 50 out of 1,000 buy your product, you have a conversion rate of 5.5%.
Formula: Conversion Rate (%) = number of visitors who performed the desired action / Total number of visitors x 100
The different types of conversion rates
There are different types of conversion rates. The most common ones use a percentage which is based on the number of people who have completed a transaction. And they can be further categorized as follows:
1. Conversions per visit:
Conversions per visit represent the number of conversions divided by the number of times someone has visited your website. Or landing page during a given time frame.
2. Conversions per unique visitor:
3. Conversion rate per campaign:
The conversion rate per campaign represents the number of conversions divided by the number of clicks that have been made to a specific page. Or advertisement during a given time frame. This can be represented in different ways, such as efficiency ratio and click-through rate (CTR).
4. Conversion Rate per keyword:
This type shows the number of conversions divided by the number of times a specific keyword has been used to visit your website or landing page during a given time frame. This ratio does not consider multiple uses of the exact keywords by different users. And it is primarily an indicator that you should revise your SEO strategy.
5. Conversion Rate per ad impression:
this type represents the number of conversions divided by the number of times an advertisement has been displayed. This metric does not consider clicks on ads or multiple views by different users, and it’s mainly used as an indicator that you should revise your SEO strategy.
There are many more types of conversion rates that are usually measured for specific purposes.
What is Conversion Rate Optimization (CRO), and why it’s important?
Conversion Rate Optimization (CRO) implies making changes to your website or landing pages to improve the percentage of visitors who complete the desired action, such as purchase, subscribing for email updates, or downloading an app.
The main idea is that more people will complete the desired action, more visitors you will get, and more conversions you’re going to have. Therefore, more sales and higher income.
Some of the best ways to optimize your conversion rate are optimizing your site for search engines, using effective advertisements, making sure you have great content on your website pages, and focusing on UX.
The most important thing is that CRO is all about constant improvement – you will never get satisfied with the result. You should always aim to do better. That’s why it’s essential to track your results. Understand what works and what does not, experiment with your website by making changes, get feedback from visitors who don’t convert – you should learn from them, use tools that can help you see how users are interacting with your website or landing page.
CRO tools that you can use to optimize your website for conversions
There are a lot of tools that can help you improve your chances to get more conversions, and they’re divided into three types:
1. Testing Tools
Testing tools allow you to experiment with your website or landing page to find changes to increase visitors’ engagement and conversion rate. These tools use A/B testing methodologies and multivariate testing tools.
2. Analytic Tools
Analytics tools provide you with data about your website traffic, visitors’ engagement on specific pages, locations from where they are visiting your website, their preferred language, and so on. Analytics tools will allow you to get valuable insights that can help you focus on the correct problems.
3. Customer Feedback Tools
Customer feedback tools allow you to get feedback from visitors who did not convert. This information will help you understand what they were looking for when visiting your website or landing page. It can also give you valuable insights into the problem that many visitors are experiencing on your website. These tools use email forms, surveys, pop-up notifications, and help desks.
Here is a list of CRO tools that you can use to improve your website’s conversion rate:
Optimizely is an A/B testing platform that will allow you to experiment with your web pages, get data about the performance of different versions, and implement changes that will lead to higher conversion rates.
b) Visual Website Optimizer (VWO)
Visual Website Optimizer is an A/B testing platform that will allow you to experiment with your web pages, get data about the performance of different versions, and implement changes that will lead to higher conversion rates. c) Google Analytics Google Analytics is a free analytics tool that will provide you with data about the performance of your website or landing page, including information about visitors’ engagement on specific web pages.
d) Crazy Egg
Crazy Egg is a web analytics tool that will provide you with heat maps of your website’s traffic, scroll maps, click maps, and other helpful visual solutions to help you analyze how visitors are using your website.
e) Survey Monkey
SurveyMonkey is an online survey tool that allows you to create surveys and forms that will help you directly get feedback from your website visitors.
Hotjar is a free analytics tool that provides heat maps, visitor recordings, and other helpful visual solutions to analyze how visitors interact with your website, what they click on when visiting specific web pages, etc.
Main metrics that you need for CRO (and why)
As you might already realize (or maybe not), CRO is all about testing and experimenting with your website or landing page to find changes that will increase the conversion rate. To do this properly, you need to have the following data:
1) Number of Visits and Visitors
You can’t improve what you don’t measure. If you need a certain number of visitors for your experimentation, then the first thing that you need is to know how many visits and visitors do you have.
2) Goal Tracking
To optimize your website properly, you will need to set up goal tracking from the beginning. In this way, you will be able to track the conversion rate of each goal separately. Without this, you won’t have reliable data to base your testing on.
3) Conversion Rate
You can’t improve your website’s conversion rate if you don’t know what this rate is currently. Track it from the beginning and report it in your weekly or monthly reports. This way, you will know whether your changes are having a positive effect.
4) Bounce rate
Bounce rate is the percentage of visitors that leave your website from the entrance page without going to any other web pages. This metric can be used to predict your conversion rate, but it is not accurate enough. In this way, you will be able to track whether your changes are effective.
5) Avg. Time on Page
Average time on the page shows how much time visitors spend on your website after entering it from a specific link. This metric can’t tell you exactly what they do during that time, but it can help you understand what keeps them engaged and interested in your website. This will help you figure out what to change in your web pages and whatnot.
6) Avg. Visit Duration
Average visit duration is the average time a visitor spends on all of your web pages after entering your site from a specific link. Without this metric, it’s nearly impossible to track engagement rates across different web pages because it’s data not available in Google Analytics.
Why this data matters
All of the metrics mentioned above are important for CRO, but some are more valuable than others. Average time on page and average visit duration are the most important ones by far because they show how engaged your visitors are with your web pages, not just how many visitors you have.
The biggest CRO mistake and how you can learn from it?
The biggest mistake you can make when it comes to CRO is the lack of consistency in your testing. Without this, you will never be able to improve your website’s conversion rate.The biggest mistake you can make when it comes to conversion rate optimization is the lack of consistency in your testing. #cro Click To Tweet
To avoid making this mistake and learn from others who have already made it, just keep in mind the following:
- Always test one element at a time (e.g., design, copy, layout)
- Track your metrics weekly or monthly depending on the size of your website and the number of visitors
- Use Google Analytics and Hotjar to track what happens on your web pages after entering them from a specific link.
- Repeat every successful test and create new tests for failed ones
Improving your website’s conversion rate can be challenging, but it all starts with knowing what data to focus on and how to track the progress of your experiments. Once you get this part right, you will have a much easier time trying out different changes that will ultimately increase conversions.
In short: set up goal tracking from the beginning, track the conversion rates of your individual goals and use bounce rate and avg—time on a page as a predictor of it.
You can check if everything is set up correctly by using Google Analytics event tracking code generator (for goal conversions) and Hotjar Heatmaps (for webpage engagement).
This way, you will know what data to focus on and how to track the progress of your experiments. Once you get this part right, you will have an easier time trying out different changes that will ultimately increase conversions.