What is CRO?
CRO stands for Conversion Rate Optimization. High conversion is the strategy to complete that action. CRO is the process of optimizing the site to enhance the conversion rate to complete a specific action.
Conversion Rate is a key tool in e-commerce, which reveals the percentage of the site’s total traffic completing a specific goal. The result is the higher the conversion rate, the better growth.
Let’s define a conversion rate on which you want to track to calculate the conversion rate.
You can assume a sale as your conversion. Whenever you are tracking the number of leads you get and the number of resulting sales (conversions), you can calculate your conversion rate −
You can determine various acts like what the value of a lead is and how many leads you need each month to grow your business and for that how much you should pay for advertising.
What is CRO?
Conversion Rate Optimization is −
- A structured and systematic approach to improving the performance of the website.
- Informed by insights − specifically, analytics and user feedback.
- Defined by the website’s unique objectives and needs (KPIs).
- Taking the traffic that you already have and making the most of it.
What CRO is Not
Conversion Rate Optimization is not −
- Based on the guesses, hunches, or what everyone else is doing.
- Driven by the highest paid person’s opinion.
- About getting as many users as possible, regardless of the quality or engagement.
Why do Companies Use CRO?
CRO plays key role to increase the efficiency of critical processes. Following are the critical things decided by CRO:
- A/B testing − What is A/B testing? In basic terms, you set up two different landing pages, each has a different element from the other. Your site presents the “A” version of these pages to half your traffic and the “B” version to the remaining half. Then you can see whether or not a small change to a call-to-action (CTA) can make a difference in conversion rates.
- Customer Journey Analysis − How did your customers progress from brand awareness to purchase? Also often referred to as a Conversion Funnel.
- Cart abandonment analysis − Investigate the cause of not checking out, once the items have been added to a shopping cart.
- Segmentation − Segmentation shows approaches to grouping prospects and customers to deliver more relevant communications and offers for better response rates to these communications.