While understanding what CRO is, it’s important to understand what conversion rate is. Conversion rate is the total number of conversions by the total visitors.
Conversion rate (%) = (number of conversions/Total visitors) * 100
For example, you have a pilates studio and are advertising for new classes and you want to know if your ads campaign was successful. Let’s say you have 4,000 visitors on your website page and you got 60 leads. So your conversion rate is 1.5%. But these are just raw leads. Out of those 60 leads, only 40 convert to clients or paying customers. So ultimately, your conversion rate is 1%. Normally anything above 10% is said to be a good conversion rate.
You will have to get at least 6,000 visitors on your website page (which is more ads money) and hope that the quality of your traffic doesn’t suffer — but that’s a gamble you should probably avoid.
Instead of hoping for the best, engage your current website visitors and leads. This is a more beneficial option and is more likely to yield positive benefits for your bottom line.
For example, if you increase your original conversion rate from 1% to 2%, you would literally double your leads and customers.
It’s clear that paying more in ads and hoping the traffic converts isn’t the best solution to enhance your conversion rate – in fact, you can expand your business significantly without raising traffic at all.
Conversion rate isn’t only limited to sales or leads. You can find out a lot of information by tracking and analysing your conversion rates. You can find out anything from website traffic to keywords. Some of the questions you can answer through conversion rate are –
• How effective is your website at converting traffic from any source?
• Is Google Ads traffic more likely to convert than Facebook Ads traffic?
• Which of your website pages converts more traffic?
• Which ad brings in more qualified traffic?
• Which keywords are performing better?
Obviously, this is only a short list. Conversion rate is an excellent indicator for assessing the effectiveness of practically any component of your digital marketing. Having a good amount of traffic to your website is great but if those clicks do not result in a profitable action for your business, something needs to change.