“Instant 20% boost in online sales and revenue, after changing the color of a button.” This type of quote may be misleading about the true magical powers of website conversion rate optimization.
The right CRO methodology can provide incredible results, but you’ll be just as amazed by the process to achieve these results through the fact-based, data-driven scientific approach we will bring to you in this guide.
Let’s start with basic definitions for online conversion rate and conversion rate optimization.
What is Online Conversion Rate?
Conversion rate is the percentage of visitors who complete a desired action on a website, during a time period. Any valuable engagement your visitors make may count as a desired action, as long as it fulfills your webpage’s goal. Remember, every page should have a primary goal.
You can choose to measure the number of visitors who:
- purchase a product
- sign up for a newsletter
- subscribe to a software
- hire a service
- download a free e-book
- fill out a ‘contact’ us form
- answer a survey
- give a feedback
- take any action a page is designed to encourage.
By measuring conversion rates, you find out if your pages are persuading visitors to take the action you want them to take on the page. The higher the conversion rates, the better your design and copy are reaching out to qualified prospects.
There are many goals, thus conversions rates, that you can track on your website.
If you are an ecommerce website, your website conversion rate is the number of monthly orders your receive divided by the number of visitors that come to your website.
At the same time, each page on your website has at least two conversion rates (if not more).
Let’s take your product pages on an ecommerce website, the goal from these pages it get visitors to click on “the add to cart” button. And of course, the final goal is to get these visitors to place an order (convert on the website). So, product pages have two conversion goals:
- Micro conversion rate for product pages is total clicks on the “add to cart” button divided by the number of visitors who visit the product pages.
- Macro conversion rate for product pages is total orders for the website divided by the number of visitors who visit the product pages.
In numbers, you need to determine a period and account for the total numbers of visitors and desired actions they took in this same period. Let’s say your e-commerce receives 200,000 visitors in one month and processes 20,000 orders in the same period.
Your website conversion rate = 20,000/200,000 = 10%.
Of those 200,000 visitors, only 50,000 make it all the way to the product pages. Of these 50,000 visitors, 10,000 visitors click on the “add to cart” button.
- Product pages micro conversion rate = 10,000/50,000 = 20%.
- Product pages macro conversion rate = 20,000/50,000 = 40%
The same concept applies if you are SaaS website. Your website conversion rate is the total number of monthly subscriptions divided by the total website monthly visitors. The SaaS pricing page, where you list the different plans for your product, has two conversion rates:
- SaaS pricing page micro conversion rate: total number of visitors to click on the “subscribe” button on the page divided by the number of visitors who visit the pricing page.
- SaaS pricing page macro conversion rate: total number of visitors who “subscribe” divided by the number of visitors who visit the pricing page.
Let’s say that your SaaS website gets 20,000 visitors per month and generates 500 subscriptions.
Your website conversion rate = 500/20,000 = 2.5%.
Of those 20,000 visitors, only 1,000 make it to the pricing page and of these 1,000 visitors, 750 click on the subscribe button.
Your pricing page conversion rate is = 750/1,000 = 75%.
- SaaS pricing page micro conversion rate= 750/1,000 = 75%.
- SaaS pricing page macro conversion rate: 500/1000 = 50%