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What Is Conversion Rate Optimization And How It Affect A Business?

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What is conversion rate optimization? First, it's necessary to understand the definition of "conversion" relating to business operations. A conversion occurs any time a member of a targeted market group interacts in any way that is deemed beneficial or of some value to a company. As stated, a conversion is a user responds to a call to action.

Examples may include:
  • Visits to a website landing page
  • Online form completion
  • Sign-ups for a trial
  • Sign-ups for email
  • White paper downloads
  • Phone calls
  • Requesting a quote
  • Sales transactions


Conversion Rate Optimization (CRO.) CRO is a systematic process consisting of analysis and feedback to maximize the percentage of website visitors who complete a definitive action considered valuable to a business. The objective is to drive sales and gather leads and achieve the most significant advantage from as many visits to the website as possible, attaining the best value for advertising dollars invested.

What are the methods used to achieve Conversion Rate Optimization? Although there are several ways to implement Conversion Rate Optimization, the predominant systems being used recently consist of two different types of testing.

One type of testing focuses on improving response to elements of an ongoing advertising plan to determine what features, such as web content, ads on search engine results pages, etc., produce the most cost-effective results. For example, a method known as A/B testing can be utilized to improve conversion rates. This involves developing a hypothesis based on a particular goal, then creating two separate versions of a company website. Half of the users are diverted to one side, and half are directed to the other, a newly-developed variation based on predictive analysis. Conversion rates in each area will be compared to discover which one functions more efficiently. It can help to determine what content functions or features are a plus and which are non-productive or, in some cases, can drive visitors away. The key with this method is to focus on continuous testing of a single element, to produce definitive, accurate results. Also, while doing this kind of testing, it has been observed that larger, single changes tend to produce more impactful results.

Specific areas of interest can include:
  • Does the Call-To-Action (CTA) button move a user to action?
  • Do Headlines/Subheadings grab and hold attention with a clear, relevant message?
  • Do functions such as email sign-ups, form completions, check-out procedures, etc., perform correctly and efficiently?
  • Do Images/Videos and their placement on a page be the best reaction?
  • Do the website pages' overall visual appearance and color scheme appeal to users and motivate valuable actions?

In contrast, the other testing involves considerable time devoted to pinpointing and becoming familiar with the pertinent marketing group, then crafting a compelling message that speaks to those specific target individuals.

Whichever method of testing is used, the idea is to utilize analysis of data to deliver an improved online user experience that captures the attention of the appropriate audience. It makes it simple for them to quickly and flawlessly locate precisely what they are seeking (across multiple devices, especially mobile), providing intuitive, engaging results that will promote the most significant number of conversions about visitors to the website and, in turn, give the actual ROI (Return on investment) relating to advertising dollars spent.