What is conversion rate? Types, Benefits, CRO

conversion rate

What is conversion rate? Types, Benefits, CRO-

What is conversion?

Conversion simply defines the accomplishment of the main moto of your website.

Example selling a product, visitors subscribing to your site etc.

What is conversion rate meaning?

Conversion rate helps you to determine the percentage of people who are actually buying your product or subscribing to your website among all the visitors who visited your site.

What is conversion formula?

Basic formula is,

Conversion rate = (No. of users completes your site goal / total site traffic) *100

This basic formula can help you to determine:

  • Percentage of people subscribed to your site among a set of unique visitors.

Conversion rate = (No. of people subscribed you/ Total no. of unique visitors)*100

  • Percentage of sale successfully conducted among the total number of leads (potential customers) generated.

Conversion rate = (No. of people who actually purchased your product / total number of leads generated) */100

  • The session rate of your site among the total number of unique visitors, where a session defines the different times a visitor visits your site.

Conversion rate = (No. of sessions/ total number of unique visitors) *100

and many more…

What are the different types of conversion ?

1 ) Macro Conversion

These type of conversion are mainly aligned with the primary goals of your website.

Suppose if you have an ecommerce website, your primary goal is to sell products.

Whereas if you have an affiliate website where you review and sell products through affiliate links. Here your primary goal is to compel users to use that particular link to buy the respective product.

2 ) Micro Conversion

These type of conversion are mainly aligned with the secondary or minor goals of your website.

Lets assume that your website gains traffic from Facebook, Pinterest, Instagram, Sign up form in your website etc. Where Pinterest is the primary source of traffic then Facebook and so on.

In such case your sign up form can be considered as a minor goal of your website.

Examples of conversion

  • Purchase of your product.
  • Query request on your product.
  • Subscribe to your service (free/paid).
  • Sign up for a email list, to receive notification on exclusive contents.
  • Upgrading an account.
  • Successful engagement through chatbot.
  • Booking for a consultation or a demo.
  • Apply for a free trial.
  • Signing up for a webinar.
  • Subscribing to a course.
  • Downloading an e-book or other documents.
  • Sharing a part of your content on social media.
  • Spending a specific length of time on your website.

Note: Services provided without any kind of payment are always likely to have higher conversion rate than those which includes payment.

How do you increase conversion rate?

conversion rate optimization

Conversion rate can be increased by determining the different aspects of your site that contributes to the overall conversion of your website.

Example: Keywords utilized, Campaigns conducted, UX of your website, Positioning of a offer, Description of a course, how much motivating or compelling your buttons are etc.

The term used for increasing conversion rate is Conversion Rate Optimization.

Conversion Rate Optimization( CRO ) is the process of enhancing the overall aspects of your website to boost conversions.

Generally, ways to improve conversion rate always depends on your site model and also vary from one business to other.

Few ways to improve conversion rate are:

1 ) Landing Page Optimization

Landing pages are essentially designed to direct the visitors to take a particular action. Example, subscribing to your site, purchasing an e-book etc.

To further optimize it we can design the page using a minimal approach.

This approach includes designs and information that are utmost important for a conversion to take place.

Here we can remove unnecessary fields from signup forms, give proper direction on how to create the right password, provide the exact, required and up-to-date information about a product.

We can also use copywriting techniques to write a short description and
create buttons using colours that emotes a positive vibe.

This colour formula shall be considered because even a bit of negative intuition can compel users to take a back seat from the deal presented.

2 ) Provide different methods of creating an account

Creating a account from scratch can be really be daunting for some visitors.

Its just that remembering or keeping note of every other password, created every time for connecting to a new site is like a pain for them.

To overcome such problems provide options to login from their Google, Facebook or other account directly. This will reduce the pain to create a new account each and every time.

Note that this does not mean that you should remove the regular normal way of subscribing to your site. People might not always feel comfortable to directly login from their respective google account.

Therefore just provide as much options as possible for the customers to choose from.

3 ) Payment gateway

Options on how and from where you can transfer your money to purchase a product can highly affect your conversion rate.

Growcode has mentioned in one of its posts that “PayPal transactions have 70% higher checkout rates than non-PayPal transactions“.

It shows that people find these sites more genuine and trustworthy and thus feels less hesitant to buy a product from them.

Incase you don’t have PayPal as an option make it a necessary to include it as fast as possible to increase your conversion rate.

4 ) A/B testing

Lets take an example of a page.

A/B testing method is the process of creating two versions of single page to test which performs well and creates more leads than the other.

This test can be performed on landing pages, headlines, placement of an offer, buttons of your website etc.

One thing we should remember while conducting this test is that this test should be performed for a fixed period of time.

Any conclusions drawn before that will neither give you a precise nor a rough result that can help you to increase the conversion rates.

5 ) Blogs

A well written highly SEO optimized content has the capability to convert the reader to a lead.

Indeed the content inside the post is the most important part of the entire post. But its font, style, colour and its brightness, size, space between two paragraph, word count on each paragraph should be given equal importance to that of the post.

  • font : It can give your site a modern feel.
  • colour and its brightness: Ease in reading the content.
  • word count on each paragraph: Always create small paragraph.

From the above options word count matters because the more bigger it is, the more clumsier and overwhelming it will look.

These options may sound very basic and unnecessary to include but I am doing so cause being a reader I had my own fair share of challenges to face.

There are sites who produces great content. But I don’t know, they fail to select the right amount of brightness for their fonts or their posts looked really clumsy and intimidating.

Therefore we shall never underestimate the power of basic things and should consider it as, as important as other aspects of a website.

Benefits of CRO

  • It creates a list of pros and cons that can be used to set a benchmark for your future ventures.
  • Due to the optimizations, a more user friendly site is created out of the old one.
  • It helps you to analyze the performance of your site by running tests such as A/B test.
  • It helps you to increase your conversion rate.

Conclusion

  • Conversion rate equals accomplishment of the moto of your site.
  • Types of conversion: Macro and Micro
    • Macro refers major goals of our site.
    • Micro refers minor goals of your site.
  • Examples of conversion-Subscribing to a course, Downloading an e-book, Sharing a part of your content on social media etc.
  • Conversion rate equals accomplishment of the moto of your site.
  • Types of conversion: Macro and Micro
    • Macro refers major goals of our site.
    • Micro refers minor goals of your site.
  • Examples of conversion-Subscribing to a course, Downloading an e-book, Sharing a part of your content on social media etc.
  • Conversion rate optimization can be achieved through optimization of various aspects of your websites. Example Pages, placement of an offer etc.
  • CRO helps to analyze the performance of your site by running different types of tests through it.

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