Article

Conversion Rate Optimization Metrics For Technology Companies

Almost every industry now has a new rage – Conversion Rate Optimization. It has been the topic of many discussions in the business world, and rightfully so because let’s face it, bringing customers to your page is only the beginning. The real challenge is to convert potential customers into paying customers. This is where CRO comes into action.

When your content works harder at bringing you leads, it’s great. But what is better is when your content works smarter to increase the conversion rate through existing customers. Are you looking for answers to all your queries related to CRO and how to up your game? You have come to the right place. Let’s get started.

What is Conversion Rate Optimization?

CRO refers to Conversion Rate Optimization. In technical terms, it is the systematic approach of increasing traffic on a particular website and increasing the rate of customers who take the desired action, such as purchasing a product, service, filling out a form, and other such actions.

It involves a thorough analysis of how your customers behave when on your website and what drives them to purchase or bounce away from a certain desired action. This helps in understanding what drives the most traffic and how you can improvise on some other factors to increase the conversion rate.

There are certain CRO metrics you need to track to standardize the entire process.

The 8 most crucial CRO metrics you need to track

1. Sources of Traffic

There are three major sources of traffic –

  • Direct traffic – These are the visitors who are aware of your website and come directly by typing in your web address in their browser.
  • Search traffic – These are the visitors who find you through search engines such as Google or Bing.
  • Referral traffic – These visitors come to your site through links provided on other sites, blogs, or social media pages.

Understanding your sources of traffic is key to achieve your organizational objectives. For B2B marketers, audience engagement is very important. Hence, you should track every traffic source and determine which one is doing best. Ensure that you are not getting all your visitors from a single source, which can prove to be risky in the long run.

2. New Visitor Conversion Rate

It is critical to understand how a new visitor interacts with your website. In comparison to returning visitors, they have a different approach to the entire process. This is why you need to have a different strategy to improve conversions of first-time visitors to your website.

Necessarily, you need to figure out what they are interested in, what grabs their attention, and how you can keep them hooked on for longer. Bear in mind that you have minimal time to make a lasting impression on new visitors.

3. Return Visitor Conversion Rate

Returning visitors either convert the first time they visit your website or can be converted the second time they do. The key is to understand why a customer has returned. You need to focus on what you can do to keep them around and direct them to your desired action.

Remember, if it is a return visitor, you made a good first impression that made them come back, you just need to focus on how to make that better.

4. Interactions per Visit

When a customer does not convert, yet highly interacts with your content, there is a good chance that they will come around. The interaction could range from spending time on your pages and reading your content to leaving reviews on it. If you are not getting high conversion rates yet receiving great interaction, keep it going, and down the line, the possibility of gaining these customers will increase.

5. Value per visit

Value per visit basically means the value a customer brings per visit to the website. The metric is an easy one to understand. The easiest method to calculate the value per visit is dividing the number of visits by the value created or added.

However, this metric usually comes long after a visit and in an intangible form, which makes it difficult to calculate. It is critical to understand that though the factor is intangible, visitors do increase the authority of your website by showing high levels of engagement.

6. Cost per conversion

Cost per conversion is also known as cost per referral. This means that you pay for visits to your website. However, this metric is restricted to your overall margin, that is, when you pay a certain amount when your traffic is free, it is profitable. However, when it is paid traffic, you are inevitably spending more on referrals. This will drag down your profits and may even turn them negative.

When going ahead with this metric, ensure you keep your budget constraints and overall margins in mind.

7. Bounce Rate

In simple terms, the bounce rate is when a visitor comes to your site and immediately leaves without doing anything. This means that the consumer does not interact with your content at all. When you are starting out as a new website, you should keep the bounce rate to a bare minimum.

Bounce rate matters because if a customer is not interacting with your site, it is unlikely that he will convert. This could happen due to a majority of reasons, such as irrelevant information, irrelevant traffic sources, the high load time for a page, poor design, weak usability, or bad interface. If there is a purchase involved, then avoid surprise costs.

8. Exit Pages

This is a key factor when it comes to final conversions. You need to figure out the exit pages in your website. These are the pages to which a visitor comes and then leaves your website. You need to figure out the reason behind these exits.

When you optimize your exit pages, you will begin to see better conversion rates in comparison to earlier scenarios.

What are the benefits of CRO?

Conversion Rate Optimization comes with many benefits. It all depends on how you analyze and improve your metrics to best suit the needs of your customers to turn them into conversions. 

CRO provides benefits in the following ways-

  • Lowers Cost Per Lead (CPL)

When you use paid advertising, but don’t get any conversions, it costs you money, and no revenue is generated. However, when you use CRO, there is a high possibility that visitors who click on your ads get converted. With Conversion Rate Optimization, the return on revenue will increase, and you will earn more profit at the end of the day.

  • Increment in business returns

Any change that you make with the help of CRO increases business returns. After running an A/B test, if you increase your conversion rates to 1 percent, several collective tests will prove to be significant in terms of bringing in returns worth several dollars.

  • Creates brand loyalty

CRO aims at keeping new visitors hooked and retaining returning visitors. Each strategy is crafted in a way it enhances customer satisfaction. This, in turn, creates brand loyalty and ensures that your customers keep returning.

  • Increases the customer lifetime value

Conversion Rate Optimization makes your website more user-friendly and easy to navigate. This makes it possible for businesses to retain and engage their customers in a better fashion. According to Sleeknote, 30% of users reported that they would prefer buying from a website they have already bought from previously.

  • Increases revenue with existing traffic

Bringing in new traffic is great. However, turning existing traffic into conversions is a better way of generating profit. It is also more efficient for businesses that have recently started out. New traffic would mean nothing of greater value if you’re not generating some income from it.

  • Valuable visitor insights

CRO provides valuable visitor insights into a business. You can analyze how your customers interact with your website and what you can do to have better engagement. This way, you will know your target audience in a very specific manner, thereby improving your reach and the possibility of higher conversion rates.

Three Challenges to CRO

Conversion rate optimization is full of challenges, and it takes a certain amount of effort to overcome them.

  1. Insufficient budget

While running a CRO campaign, the major concern is the budget restraint. The key lies in good budget allocation. This means that you have to carefully plan your activities before you decide to go ahead with a Conversion Rate Optimization campaign.

  1. People and Politics

People and politics are a major factor when it comes to CRO. People highlight skillsets, while politics highlight influence and authority. You need to educate people regarding the benefits of CRO and ensure to provide competitive analysis for better understanding. Moreover, it must be kept in mind that you do not allow thoughts to overshadow factual information.

  1. CRO support structure

It is a necessity to educate your workforce regarding CRO because a number of questions come up, such as whether or not it is important to have a whole team dedicated to working towards this optimization. You will have to answer any questions regarding the same and convince your team.

Four mistakes to avoid when running a CRO campaigns

When businesses run CRO campaigns, there is a high chance that they end up making certain mistakes. Here are four mistakes to avoid and the reasons why you should avoid them.

  1. Opinions over statistics

Your business must prefer statistical data over opinions. Ensure that you do not make decisions based on what your thoughts are, rather than what statistics have to say. Just because you find the page design better, or the functionality superior, it does not necessarily mean that you will get better results out of it.

  1. Irrelevant content

Avoid filling your web pages with irrelevant content. This is one of the major reasons for high bounce rates. When a customer does not find what he is looking for on your page, he will not interact with it, thereby making your CRO ineffective.

Focus on the USP of your brand and add relevant keywords to top the list.

  1. Running small tests first

This is the most common mistake businesses make when running a CRO campaign. They think it is better to run small tests first, rather than the bigger ones. Small tests will only bring you minimal conversion rates. However, bigger tests such as redesigning your homepage, writing catchy headlines, or important notifications, and increasing visibility will bring you far more conversions.

  1. Too many pop-ups and tests

Make sure that you do not run too many pop-ups and tests on your website simultaneously. Firstly because you do not get an accurate analysis of how it is affecting your site, and secondly, too many unnecessary pop-ups will confuse the visitors. This may lead to them abandoning your website and cause them never to return back.

Use Case: 

POSist is a SaaS-based restaurant management platform. It provides POS (Point Of Sale) solutions to some of the top restaurants across the globe. The company worked on a demo basis for its services and wanted to increase demo requests from potential clients. They also wanted to reduce drop-offs on the homepage, and the contact page as these were the two pages that got them maximum conversions.

In order to achieve this, POSist ran a CRO campaign that helped them in identifying the weak areas. After proper analysis, the company crafted their homepage to include more relevant content that focused on conversion. This helped improve user experience and generate about 52% more leads in one month, and there was an overall increase of 25% for the website and brought in success.

Bottomline 

CRO is not just a valuable tool for huge companies, but also for companies that have just started off. It is important to keep your customer satisfaction at a higher level to increase your profit margins in the long run, and CRO does just that.

Key Takeaways

  • Conversion Rate Optimization helps in increasing traffic to your website, keeping new customers engaged, and retaining returning customers. This turns potential customers into loyal customers and is a key element in business growth.
  • CRO involves a thorough analysis of customer behavior and how they interact with a particular web page or the entire website in general.
  • You must track CRO metrics such as traffic sources, new and return visitor conversion rates, interactions, value, cost per conversion, bounce rates, and exit pages for better conversion rates.
  • CRO gives you an increment in business returns, lowers cost per lead, and increases the customer lifetime value.
  • Challenges such as people, politics, insufficient budget, and lack of a strong support structure arise when deciding to promote CRO in your company.
  • Avoid irrelevant content and prioritize statistics to boost your Consumer Rate Optimization and increase traffic.