What is the Conversion Rate and How to Optimize It?

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What is the Conversion rate and how to optimize
Conversion?
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What is a conversion rate?

• By dividing conversions by visitors, you can
  calculate the conversion rate. A conversion rate
  of 25 would be 100 divided by 400 if an
  eCommerce site receives 400 visitors in a month
  and 100 sales.
• A conversion pertains to the type of action that
  should be taken by the user. Clicking on a button
  to become a customer is one example. Conversion
  rates vary by website and app since each has one
  or more conversion goals.

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Why your conversion rate is important

• Your web pages and apps can be measured by
  tracking conversion rates. You can measure the
  success of your site or app by knowing what
  percentage of users complete the goals that drive
  your business.
• With the same amount of traffic, you can get more
  sales by improving your conversion rate. In the
  example above, if you spend 1,000 a month on
  advertising to attract 500 visitors to your
  website, doubling your conversion rate
  effectively doubles the value of your
  advertisement.
• The extra revenue can then be invested into new
  ad programs, or the ad budget can be reduced and
  the same benefit can be obtained as before.

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What you can do to increase conversion rates

• A conversion rate optimization strategy focuses
  on identifying conversion goals, calculating
  conversion rates, and optimizing your website or
  app to boost conversion rates.
• A/B testing involves testing two versions of a
  page against each other to determine which one
  performs better in order to improve conversions.
  The idea is to develop hypotheses as to why
  visitors arent converting and come up with ideas
  for how to improve them.
• In order to continuously improve the performance
  of your website or app, you must identify new
  conversion goals, identify areas where you can
  improve conversion rates, and implement tests of
  new features.

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Conversion rate optimization in action

• The case study below illustrates how CRO can be
  implemented in the real world through ComScores
  web analytics system.
• To determine the conversion rate for the page,
  the company set a goal (leads generated),
  determined the conversion rate, and then
  performed experiments with different ideas to
  improve the conversion rate.
• It was hypothesized that testimonials would lead
  to an increase in conversions and visitor trust.
  They also ran tests of the page displaying the
  testimonials as well as the logos of the
  companies contributing the testimonials.
• During the A/B/n test, the page with testimonials
  was 69 more successful than the original page
  without testimonials and logos. It is an
  excellent example of how a company was able to
  have a measurable impact on its business by
  improving its conversion rate through testing.

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