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Reporting & conversions

Conversion rate optimization

Also known as: CRO

Conversion rate optimization (CRO) is the ongoing process of increasing the share of website visitors who take a desired action, such as a purchase, an inquiry or a newsletter sign-up. The measure is the conversion rate, the ratio of conversions to visitors.

How does CRO work?

It starts with a defined goal. In GA4 such an action is a key event, an event that measures something particularly important to your business. If you want to track several stages, you can separate macro conversions such as a purchase from micro conversions such as a download.

Then, as is common practice, a cycle repeats. Analysis shows where visitors drop off. From that you form a hypothesis, for example that a long form costs inquiries. A variant of the page is tested against the current one in an A/B test, and the result feeds the next round. A test needs enough visitors and enough time before a difference can be told apart from chance. Optimizely points out that most experiments do not produce a winner, so the learning is part of the value.

CRO and SEO

SEO influences how many visitors arrive from search. CRO addresses what those visitors do on the page. Both draw on the same analytics data and often work on the same landing pages.

Example

A shop has 20,000 visitors and 400 orders in a month, a conversion rate of 2 percent. The hypothesis is that mandatory registration before checkout prevents purchases. Variant B offers guest checkout. If the rate in the variant reaches 2.4 percent with enough visitors, that would mean 80 more orders a month at the same traffic. (Invented numbers for illustration.)

Common mistakes

These points are based on practical experience.

  • Testing several changes at once, so the cause of a result stays unknown.
  • Ending a test as soon as one variant leads. Early swings often level out.
  • Setting other sites’ averages as the target, since rates depend on industry, product and traffic source.

FAQ

What is the difference between SEO and CRO? SEO aims to bring more of the right visitors from search. CRO aims to turn more of the visitors you already have into customers or leads.

What is the difference between CVR and CTR? Conversion rate (CVR) relates conversions to visitors. CTR relates clicks to impressions, usually in search results or ads.

Sources

  1. Key events – Analytics Helpsupport.google.com
  2. What is conversion rate optimization? – Optimizely (secondary)optimizely.com
  3. What is CRO? – Skillink (secondary)skillink.com
  4. Conversion rate optimization techniques – ActiveCampaign (secondary)activecampaign.com

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