Conversion Rate Optimization (CRO)
“the team adfirst “dikhega to bikgega”
What is CRO?
CRO stands for Conversion Rate Optimization.
It includes actions you do to increase the conversion rate on your website, this can include the following:
- Quantitative data analysis
- Qualitative customer research
- Experiments
You try to use knowledge of psychology, user experience and web usability to discover friction points in why visitors do not take the desired action. For that, you will set up experiments to solve bottlenecks in a data-driven way
Why conversion optimization?
You now have 500,000 visitors for a €75,000 advertising budget with 10,000 transactions for €2 million in sales, that is a conversion rate of 2% and an average order value of €150.
Suppose you want to generate a turnover of €4 million next year, you will have to spend at least twice as much advertising budget (i.e., €150,000), increase your conversion rate from 2% to 4% or increase your average order value from €150 to €300.
In general you can’t easily double the average order value, doubling your ad budget is generally not necessarily desirable because of low margins.
Often you see some bottlenecks that cause visitors to take action. Suppose you bring the conversion rate from 2% to 4%, you will have doubled your turnover without extra advertising budget and you will achieve higher margins on your advertising budget so that you can free up more budget for this: