Conversion optimization - What is CRO and why is it important for your digital marketing?

Today, most marketing teams focus on driving traffic to websites in the hope that this traffic then converts into qualified leads for sales reps to close. But that's only half the battle.

Å få mer ut av eksisterende trafikk og leads kan skyve selskaper mot langsiktig, bærekraftig vekst. Det er her konverteringsoptimalisering  kommer inn. For de som lurer, konverteringsoptimalisering står for Conversion Rate Optimization eller konverteringsoptimalisering på norsk.

I denne guiden vil du blant annet lære om kraften i konverteringsoptimalisering, hvorfor bedriften din bør fokusere på å øke konverteringsraten, og hvordan komme i gang.

What is conversion optimization (CRO)?

Conversion optimization (CRO) is the practice of increasing the percentage of users who perform a desired action on a website. Desired actions can include purchasing a product, clicking 'add to cart', signing up for a service, filling out a form, or clicking on a link.

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Why should you spend time on CRO?

Å investere tid i konverteringsoptimalisering sikrer at du ikke bare tiltrekker besøkende til nettstedet ditt, men at de besøkende utfører handlinger som er verdifulle for din virksomhet. Enten det er å fylle ut et skjema, kjøpe et produkt eller abonnere på et nyhetsbrev, hjelper CRO deg med å maksimere avkastningen på investeringen din i digital markedsføring.

How to calculate conversion rate

CRO calculation 1 : Conversion rate

Conversion rate, as we mentioned earlier, is calculated by dividing the number of conversions (or leads generated) by the number of visitors (or web traffic), and then multiplying that number by 100 to get the percentage.

Leads generated ÷ Website traffic x 100 = Conversion rate %.

CRO calculation 2 : Number of net new customers

The number of new customers can be calculated by dividing the net revenue target by their average selling price.

New revenue target ÷ Average selling price = Number of new customers

CRO calculation 3 : Lead targets

Lead goals can be calculated by taking the number of new customers and dividing it by your lead-to-customer close rate (which is your total number of leads divided by total number of customers) percentage.

Number of new customers ÷ Lead-to-customer closure rate % = Lead target

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Here's an example of these formulas in action:

If your website has 10,000 visitors per month who generate 100 leads - and then 10 customers each month - the visitor-to-lead conversion rate would be 1%.

What if I wanted to generate 20 customers every month?

You can try to get 20,000 visitors to your website and hope that the quality of your traffic doesn't decrease - although that's a risk you probably want to avoid.

Instead, you can get more leads from your existing traffic by optimizing your conversion rate. This is less risky and is more likely to produce better results for your bottom line.

For example, if you increase your conversion rate from 1% to 2%, you would double your leads and your customers. The following table is proof of this - you can see the positive impact resulting from increasing the conversion rate on your website:

For å virkelig lykkes med konverteringsoptimalisering handler det ikke bare om å tiltrekke seg besøkende, men også om å forbedre konverteringsraten, og for dette må du først forstå og anvende effektive CRO-strategier.

What is the average conversion rate?

Depending on what you read, the average conversion rate is somewhere between 1% and 4%.

But this is not really true since:

• Conversion rates vary wildly depending on the conversion goal (ad clicks, completed purchases, newsletter sign-ups, etc.)
• Every website, page and audience is different
• Most don't share their conversion data publicly anyway

Averages can be useful as a starting point for benchmarking.  

There is no actual, definitive industry figure you can trust or compare yourself to 100%. Obsessing over an average percentage, and trying to squeeze out as many conversions as possible just to keep up with it, is not the best way to think about conversion optimization. Again, you're better served by focusing on developing a deep understanding of what actually matters to your users so you can give it to them - and then conversions will naturally follow.

What is high CRO?

A high conversion rate is when you achieve a conversion rate that is higher than the average for your industry. For example, if 1,000 visitors come to your website and 50 of them perform a desired action, you have a good conversion rate of 5%.

What is the difference between SEO and CRO?

SEO (søkemotoroptimalisering) fokuserer på å tiltrekke besøkende til en nettside gjennom organiske søk, mens konverteringsoptimalisering handler om å konvertere disse besøkende til kunder eller leads. Mens SEO tiltrekker trafikk, sikrer CRO at denne trafikken er verdifull for din virksomhet.

How should you work with CRO?

Effektiv konverteringsoptimalisering krever en kombinasjon av dataanalyse, brukerfeedback og A/B-testing. Det er viktig å forstå hva brukerne dine ønsker og hvordan de reagerer på din nettside. Dette kan oppnås gjennom verktøy som heatmaps, brukerundersøkelser og analyse av brukeratferd. Ved å A/B teste ulike elementer på din nettside, kan du finne ut hva som fungerer best for å konvertere potensielle kunder.

Where should you implement a CRO strategy?

There are several areas of your website that can benefit from conversion optimization. Here are some of them:

1. Homepage

Hjemmesider er førstekandidater for konverteringsoptimalisering. I tillegg til å gi et førsteinntrykk til besøkende, er hjemmesiden også en mulighet til å beholde disse besøkende og veilede dem videre inn på din nettside. Dette kan oppnås ved å fremheve lenker til produktinformasjon, tilby en gratis registreringsknapp, eller til og med inkorporere en chatbot som ber om spørsmål fra besøkende når som helst under deres nettleseropplevelse.

2. Pricing page

A website's pricing page can be crucial for many website visitors. CRO can help a pricing page convert visitors into customers by changing the price ranges (e.g. price per year vs. price per month), describing the product features associated with each price, including a phone number for visitors to call for a quote, or adding a simple pop-up form.

3. Blog

En blogg er en massiv konverteringsmulighet for en nettside. I tillegg til å publisere tankevekkende og nyttig innhold om din bransje, kan en blogg bruke konverteringsoptimalisering for å konvertere lesere til leads. Dette kan ofte inkludere å legge til oppfordringer til handling (CTA) gjennom en artikkel eller invitere lesere til å lære mer om et emne ved å sende inn deres e-postadressen i bytte mot en e-bok eller bransjerapport.

4. Landing pages

Since landing pages are inherently designed for people to take an action, it makes sense that they have the highest average conversion rate of all registration forms at 23%. An event landing page, for example, can be optimized with a video from last year's event to encourage visitors to register this year. A landing page that offers a free resource can be optimized with advance content from that resource to encourage visitors to download it.

The best conversion optimization tools

To effectively implement a CRO strategy, you need the right tools. This can include A/B testing tools, heatmaps, user feedback tools and more. Some popular CRO tools include Optimizely, Hotjar and Crazy Egg.

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