Why is conversion rate optimization important for businesses? 

Conversion rate optimization is a process that helps businesses improve their website to increase the number of conversions (either sales or other actions). It includes everything from site design and user experience, to content, calls-to-action, forms, and more. It involves identifying areas that need improvement and testing them to see which elements are most effective. 

Why Is It Important?

The reason that conversion rate optimization is important for businesses is that it can help them lower their customer acquisition costs and boost their customer lifetime value. This means that they can retain more of their existing customers and bring in more revenue than before, while also increasing their profit margins. 

Measuring Your Current Conversions:

One of the first things that you should do as a business owner or marketer is to measure your conversion rates. This allows you to understand how well your marketing efforts are working and what areas need more attention, as well as provide a foundation for your future efforts. 

You can find these metrics on your website, and in most cases you can use the analytics platform that is built into the ad networks you use to track them. Ideally, you should monitor them regularly to ensure that any changes you make are actually having an effect on your conversions. 

Measuring Your Conversions: 

You should start by establishing your baseline metrics, such as the number of visitors who convert into customers and the average order value. This will give you an idea of where your conversion rate is at and allow you to set a goal for how many visitors you want to increase. 

Identifying the Top Page(s) to Optimize: 

Your best pages will have the highest conversion rates, so it’s worth focusing your CRO efforts on these first. For example, if you run an online hats retailer, improving the conversion rate of your hats page will have the biggest impact on sales. 

Personalization and Automation:

Another important aspect of conversion rate optimization is personalizing your customer’s experience. This means creating unique, personalized messages for each person that visits your site or app. This can be done through a variety of techniques, including AB testing, multivariate testing, and AI-powered automation tools. 

Using these methods can result in significantly higher conversion rates than sending out generic, mass-mailed emails or advertisements. For example, Amazon was able to drastically increase their conversion rate by creating a streamlined, one-click checkout process that allowed customers to purchase items without entering their payment information again and again. 

The importance of using a tool like Optimizely:

Having a tool like Optimizely is important for conversion rate optimization because it allows you to easily create A/B and multivariate tests. The visual editor makes it easy to design and implement experiments, while the stats engine helps you track results for each test and show you exactly what is working on your site or app. This allows you to take a big picture approach to your CRO strategy and avoid making small changes that may not have a major impact on your conversion rate.