Lesson 14 – Conversion Rate Optimization
Today we are going to learn about Conversion Rate Optimization. CRO is one of the most important areas of digital marketing. It is also an exciting area in digital marketing because it is fun to experiment with various elements of the funnel to see what works and what doesn’t.
I have explained how a funnel works by giving a simple example of a vacuum cleaner sales man. You will understand how small improvements at each stage of the funnel can improve the overall conversions towards the end. It helps you increase the revenue.
Having high conversion ratios is really important because we do not have an unlimited set of audience to sell to. Your target market is limited. In this example, the sales man can only knock on so many doors in a city or town and if he wants to increase his sales, improving his conversion ratio is easier than finding more doors to knock.
There are many tools that help you increase the conversion ratios on your web-page. One of the tools discussed here is LuckyOrange. It helps you create heat maps on your website, track user movements and clicks. This helps you understand more about how users interact with your webpage and will help you increase the conversions by making changes appropriately.
What is A/B Testing?
A/B testing is the concept of testing two different elements on a web page to find out which performs better. Watch this short video to understand the concept of A/B testing.
My A/B Testing Results
You would have seen in the video that I’ve set up an A/B testing experiment. One variation of the landing page had a green button and the other variation had a blue button. After a day, these are the results I’ve got. The experiment shows that the blue button is not performing well.
However, you should also note that the numbers are not big enough to conclude the experiment. With small changes like colors, we should wait for 1,000 conversions before declaring the winner. The confidence level declared by the tool should be 90% or more to finalize the experiment. Read more about Law of Large Numbers and Regression to the Mean.
Conversion Rate Optimization Tools
Here are some of the conversion rate optimization tools that you can try out. Most of them allow you to sign up for a free trial and you can try out their features.
- Visual Website Optimizer (VWO)
Apart from these tools exclusively built for CRO, there are many other tools that help you do A/B testing, Most of the landing page tools like Instapage.com and Unbounce.com have inbuilt A/B testing tools for improving the performance of your landing pages.