CRO

Category: Marketing

CRO (Conversion Rate Optimization)

CRO is a systematic process of increasing the percentage of website visitors who perform the desired action (called "conversion").

Key elements of the definition:

What is "conversion"?

Conversion is any desired action that the user performs. It varies depending on the business and goals.

  • For an e-commerce store: Purchasing a product.
  • For a services website: Submitting an inquiry form.
  • For a blog: Subscribing to a newsletter or sharing an article.
  • For a software company: Downloading a demo version or registering for a free trial period.

What is "conversion rate"?

This is the measurable metric that shows effectiveness. It's calculated by the formula:

(Number of conversions / Total number of visitors) * 100%

Example: If 1000 people visit your product page and 40 of them buy it, your conversion rate is (40 / 1000) * 100% = 4%.

What is "optimization"?

This is the process of improvement. CRO is NOT just testing two different button colors (although that's part of it). It's a comprehensive strategy that includes:

  • Analysis: Studying user behavior (through tools like Google Analytics, heat maps, session recordings, etc.) to identify problem areas.
  • Hypothesis formulation: Creating an assumption about what can be improved and why (e.g.: "If we move the 'Buy' button higher up on the page, we'll increase conversions because users won't have to scroll as much to see it.").
  • Testing: Verifying the hypothesis through A/B tests or multivariate tests, showing different versions of the page to different groups of users.
  • Measurement and conclusion: Analyzing the test results. If version B wins with high statistical significance, it becomes the new version of the site. If not, analyze why and start over.

Why is CRO so important?

  • Better return on investment (ROI): When you convert a larger percentage of your existing traffic, you get more sales or leads without spending additional money on advertising.
  • Better understanding of customers: The CRO process forces you to delve deeper into the motivation, behavior, and problems of your audience.
  • Improves user experience (UX): Sites that are optimized for conversions are usually also easier to use and more useful for visitors.
  • Competitive advantage: Many companies focus all their efforts on attracting traffic but miss optimizing what happens to it afterward. CRO gives you an advantage over them.

Example of CRO in action:

Situation: An e-commerce store notices that many people add products to their cart but don't complete the order.

CRO process:

  • Analysis: With the help of a heat map, they discover that users don't see the "Order now" button because it's too far down on the page.
  • Hypothesis: "If we make the payment button more contrasting and move it higher up, we'll increase the number of completed orders."
  • Testing: Two versions of the cart page are created:
    • Version A (original): Current design.
    • Version B (variation): Bright orange button positioned higher.
  • Result: After a month of testing, Version B shows a 15% increase in cart-to-payment conversion. They adopt the change permanently.
  • Conclusion: CRO is not a one-time event but a continuous cycle of improvements. The goal is to create a website that not only attracts traffic but also provides visitors with the best possible way to become customers.

Conclusion:

CRO is not a one-time event but a continuous cycle of improvements. The goal is to create a website that not only attracts traffic but also provides visitors with the best possible way to become customers.