What is CRO?
Conversion rate optimization (CRO) is the systematic process of increasing the percentage of website visitors who take the desired action be that filling out a form, becoming customers, or otherwise. The CRO process involves understanding how users move through your site, what actions they take, and what’s stopping them from completing your goals.
To improve your business’s conversion potential, you need to look back at the term we defined at the beginning of this article: conversion rate optimization. You don’t just want 50 more conversions from a webpage — you want 50 more conversions for every X amount of people who visit it. This is your conversion rate — it’s the percentage of people who convert on your website based on how many people have touched it.
Formulas for Conversion Rate Optimisation
Below are three formulas to help you figure out how to tackle CRO at your company, and what goals to set:
- New revenue goal ÷ average sales price = # of new customers
- # of new customers ÷ lead-to-customer close rate % = lead goal
- Leads generated ÷ website traffic X100 = % conversion rate
To help you understand the impact CRO could have on your business, here’s an example of the formulas in action:
If your website has 10,000 visitors per month that generate 100 leads — and subsequently, 10 customers each month — the website visitor to lead conversion rate would be 1%.
What if you wanted to generate 20 customers each month? You could try to get 20,000 visitors to your website and hope that the quality of traffic doesn’t decrease. Or, you could get more leads from your existing traffic by optimizing your conversion rate.
If you increased the conversion rate from 1% to 2%, you’d double your leads and your customers.
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