Conversion Rate Optimization
In Internet Marketing, Conversion Rate Optimization (or) Conversion Optimization is a system designed to increase the number of visitors to a website and to convert them into customers. In simple words, it is the method to optimize a website based on the potential audience and to increase the conversion rate of a web page.
Below is the Simple Example of Conversion Rate Optimization for an E-commerce Website and Business Websites.
E-commerce Website: Optimizing the e-commerce website in such a way that it reaches the needy and right people. In an E-commerce website, a person who makes some purchase or order is considered as the conversion. So by optimizing the E-commerce website will make sure that most of the visitors were converted into customers.
Business Website: Most of the Business website won’t have payment options to track the conversion, instead people who submit the Inquiry can be counted as the conversion. So by optimizing the Online/ Internet Marketing Strategies will help in increasing the inquiries.
What is Conversion Rate in SEO?
In SEO, Conversion is considered based on the achievement of the goal set for a particular website. A goal cannot be the same for every website, because it will be completely based on the domain. So, here the conversion rate is measured as the number of potential customers whose action is completed. It can be by purchasing a product (or) filling the contact details (or) by ordering the services.
Conversion Rate Optimization is carried out to increase the number of conversions by ranking or targeting the right audience. When it comes to paid campaigns, the people will prefer only to make everything into conversion. So for that, we must target the potential customers who can get converted through our promotional activities. It is not possible to take 100% conversion but the conversion rate optimization will surely increase the ROI (Return on Investment).
Conversion Rate Optimization Steps
Data Collection and Processing
Data Collection is the most important step for any analysis. The result will be effective or ineffective which is completely based on the data that has been collected for the processing. It will have a pre-screening and post-screening process to eliminate redundant or irrelevant data. In this process, data cleaning will be processed to make the data very efficiently.
Hypothesis is the next step of Conversion Rate Optimization. In data collection & processing, some changes will be made based on the data available. So it may fill some missed information and in the hypothesis, it will have a clear note that why the changes were made.
The term “Optimization” means that “Making the Best or Effective Decisions with the Current Situation”. In this step, the business goals were explicitly defined and decisions will be made in such a way to achieve the goals. These methods will have long success records which consider the Business focus, Complete analysis on previous success and more. Optimizing gives you the effective results and it results positive for Conversion Rate Optimization.
Optimization and targeting must be in a way that helps the business by satisfying their own and other business rules. It must be handled under a framework to make the optimization effective for business.
Real-time Decision Making
Real-time Decision Making is very much important for better results. Mathematical models have been built, to show the ad content for particular visitors in a particular place with the best offer or effective sentence formation. So here the business goals are optimized while refining it based on the business rules.
Checking the Results is the repetitive process during which the validation testing, variable selection, and other techniques were used to distinguish true events from chance events. Best Mathematical models will be deployed for better results and effective optimization.
How Do You Calculate a Conversion Rate?
In Conversion Rate Optimization, calculating the conversion rate is very important to make it right. Before following the steps to calculate your conversion rate, check whether it comes underpaid conversion or organic conversion. It is easy to check and control the paid conversion but it is not that much easy for Organic visitors.
Calculate Paid Conversion Rate
To calculate the Conversion Rate of Paid Advertising, you should have two values: the number of clicks made through the Ads and the number of conversions.
Conversion Rate is calculated by dividing the Total Number of Conversions by the total number of Ad Clicks. For example, if you have got 100 conversions from 500 clicks then your conversion rate would be 5%, i.e. 500 / 100 = 5%. Here the conversion rate may vary based on your calculation. If you are tracking more than one conversion action then you will be counting every conversion and it will cross 100%.
If you are using Google AdWords to promote your business and to make more conversions, then you can use conversion tracking in your account to measure the conversion rates and use them to take better decisions on advertisements.
Calculate Conversion Rate of Organic Search Results
To calculate the conversion rate of organic search results, you must have Google Analytics integrated into your website and some fixed goals. For example: Submitting contact form, making a purchase (or) ordering a service.
In organic search results, it is quite difficult to calculate the conversion. If your goal is to make people to order a service or to purchase the product/services, then your conversion is the Number or Orders or No of sales. If your goal is to make the people submit a contact form, then you should redirect the users to a particular page after completing the contact form submission. So that it will be easy to count the conversion rate.
Conversion Rate is calculated by dividing the Total Number of Conversions by the total number of goals achieved. In Organic marketing, the conversion rate will be very low when compared to paid advertising. Because it is not possible to guarantee that, a website will rank only for potential keywords.
What Does Conversion Rate Mean?
In general, Conversion Rate is the calculation of goal achieved to increase the ROI of a business. In Online/ Digital Marketing, Conversion Rate means the goal achieved in a limited time. It is generally calculated with the formula – the total number of conversions divided by the total number of clicks/traffic. The process of optimizing the website and increasing the conversion is termed as Conversion Rate Optimization.
A successful conversion is defined differently by the individual marketers, website administrators, advertisers and so on. So once the goal is set, the proper configurations should be made to track the conversion or goal achieved. Google Analytics is the most important tool to track conversions.
Importance and its Best Practices
Working without target won’t give you any improvement in your work or business. So tracking the conversions and planning to increase the ROI by reducing the customer acquisition cost is very much important for better growth.
- It helps to reduce your Advertising or spending cost.
- Your targets will become Narrow towards potential customers.
- ROI (Return on Investment) will get increased, which is the increase in your profits.
- If you are spending on Ads for more conversion, then conversion optimization will help in increasing the Cost Per Conversion (or) revenue per visitor.
Common Conversion Marketing Services
- Re-targeting (or) Re-marketing – In re-marketing, website visitor’s data will be captured and the advertised. It will be shown to those people continue to remember them about our brand and product for more conversions.
- Targeted Offers – Based on the demographic information and analysis, promoting the products with the right offers to the right customers.
- Reviews and Rating – Getting positive reviews from the customers will increase the trust among the people. Submitting your website in reviewing site will helps in generating more traffic and quality conversions.
- Click to Call – Sometimes the website information will not be enough for the visitors to understand the product or services. In such a case, providing a call to action button in a website will avoid users moving to another website.
- Blogging – Most of the Blogs were searched by the people who were in need of it. So continuous blogging on your specialization helps in brand awareness and conversions.
- Targeted Marketing – It is not easy to reach the needy people through organic results or blogging. So in such case,
- It is better to promote your business by targeting the right people to get more visitors.
- And to catch the eyes of the people who are in need of it.
Conversion Rate Optimization for Business
If it is a business depends on Digital Marketing by focusing the customers over Online, then there are two basic ways to concentrate on. They are Organic Ranking (Search Engine Optimization) and Paid Advertising or Marketing (Search Engine Marketing & Social Media Marketing).
If your customers aware of the product and has much knowledge about it, then you will have potential customers over Search Engine Optimization. If you want to highlight your product in front of the potential users, then you will be advertising and marketing using the Paid methods. Whatever the method is, a thing you want to concentrate more is ROI (Return on Investment) and it can be achieved by Conversion Rate Optimization (or) Conversion Optimization.
Organizing your target only for potential customers will reduce your cost per conversion. Also, it will give us a clear view of the customer base. It makes targeting like a funnel and helps a lot in designing marketing strategies.