Conversion Rate Optimization: How to Calculate CRO

Conversion rate optimization (CRO) is a marketing strategy aiming to increase a specific activity by online users. For example, an e-commerce site might employ CRO tactics to increase purchases. Companies can use analytics tools and various metrics to measure website traffic and user behavior, then make tweaks to improve the sales funnel and lead to purchase completions and higher conversion rates. Optimization efforts help ensure the usability of a website is clear. Various CRO tools can help guide potential customers toward a purchase through a straightforward checkout process.

CRO strategies are essential to e-commerce sites for several reasons. Consider how the CRO process can benefit your company’s internet marketing plans:

1. 1. Increase e-commerce conversion: Conversion rate optimization tools turn more website visitors into purchasers, increasing sales and revenue for the company. Strategic CRO tools can also increase the ad spend value for pay-per-click (PPC), so click-throughs translate into sales.
2. 2. Improve the user experience: Clear checkpoints help guide new customers to the desired action, typically the purchase. CRO encourages functionality, instantaneous load times, and an appealing website design, leading to a better buyer’s journey and more paying customers.
3. 3. Retain customer interest: Site visitors can leave anytime, so the optimization process helps keep customers’ attention and lead the customer experience through pop-ups, call-to-action (CTA) buttons, and conversion rate optimization strategies.

A company can measure its site’s conversion rate by dividing the total number of conversions by its number of visitors. This metric is over a set period, usually weekly or monthly. For example, if a store had forty sales and 1,000 website visitors last week, the conversion rate is forty divided by 1,000, which equals .04, or 4%. Conversion goals vary from business to business, but an industry benchmark for average conversion rates is just under 3% for established companies or half that for new ones.

Consider the following ways to streamline your conversion funnel to increase sales on your e-commerce site:

1. 1. Conduct A/B tests. Split testing or A/B testing is vital to CRO marketing and can help companies understand how users intuit the website navigation. Build different pages with the same end goal (a sale), but see which is easier to navigate based on bounce rates and conversions. After testing the variable pages with similar demographics, lead with the more successful page for the best customer journey.
2. 2. Do simple better. Fussy, over-designed, and busy pages make it hard for customers to distill information and make a purchase. Too much copy can detract visitors, increase bounce rates, and decrease sales. Instead, lead with simple designs and minimal copy to streamline the purchase path.
3. 3. Have clear checkpoints. The customer path should be clear, perhaps with a bar at the top of the screen to identify where they are in the purchase process. Add to wishlist, add to cart, CTA buttons, and other clear markers streamline the purchasing process and strengthen conversion optimization.
4. 4. Send users to the correct page. Avoid linking to your company’s homepage, FAQ, or other irrelevant page when advertising products. Instead, direct customers to the product pages. These pages should be near the end of a sale, so the customer can hit the add to cart button. (Once at the checkout, be sure to gain critical employee data, such as email addresses and phone numbers, which can be tools for future marketing campaigns.)
5. 5. Tailor ads to a target audience. Search engine optimization (SEO) and paid advertising should factor into your online marketing tools so that content reaches the target audience and is part of a more dedicated campaign.

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