Conversion rate optimization terminology explained.

what is conversion rate optimization

Friday 24th November. I had a few calls booked with potential clients about GoGoChimp’s conversion rate optimisation services.

It was one of those dull, cold Scottish days where the lighting on your webcam makes it seem like your business is based in a cave.

The cool peeps I spoke to had various questions about the process we use to identify problems affecting conversion rates and how we go about fixing them.

There wasn’t anything to note. Nothing at all out of the ordinary. No difficult questions, grinding of teeth, pouring of sweat, pounding of blood or any of that fun stuff. They simply wanted to know more about conversion rate optimisation and why they needed it.

And it’s perfectly understandable for people to have questions about CRO. After all, everyone can’t know everything about anything.

However, later that evening I started thinking about how often I’m asked the same questions. I realised that unless you’re balls-deep in conversion rate optimization (CRO for short), then most of the I write about on the GoGoChimp blog is meaningless jibberish.

The average Joe wants to know what conversion rate optimization is before they can assess if it’s right for them or perhaps something they want to learn to do themselves.

So with this in mind, this article aims to answer the most common questions people ask about conversion rate optimization:

What does a “conversion” mean in marketing?

CRO tips for writing stronger headlines.

In marketing, when a desired outcome is taken by visitors, subscribers, or customers we call it a conversion. Actions may include subscribing to an email newsletter, downloading a free ebook, signing up for a webinar, or purchasing a product​​.

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What is a conversion funnel?

conversion funnel segmentation
This website uses three conversion funnels based on customer profiles.

A conversion funnel is the journey of people’s interaction with a business or brand from the time they become aware to becoming customers and in some cases, repeat customers. This often follows the stages of awareness, interest, desire, and action (AIDA)​​.

What is conversion rate optimization?

subheading cro tip
CRO tips for writing better subheadings.

Conversion rate optimization (CRO for short) involves optimizing a website to increase conversions from existing web traffic. This includes tweaking web pages or email campaigns to enhance the number of people taking the desired action. This involves testing, measuring, and making incremental changes to continually improve conversion rates​​.

Why is conversion rate optimization important?

CRO tips for using social proof.
CRO tips for using social proof.

CRO is crucial because it allows businesses to maximize the effectiveness of their existing traffic to their website. This strategy improves marketing ROI by focusing on people who have already shown interest in the business, rather than trying to reach a new audience​​.

How do you calculate your conversion rate?

conversion rate optimization objections
Conversion rate optimization tips for objections.

The conversion rate is calculated by dividing the number of actions or conversions by the total number of visitors or subscribers (for example 10 conversions divided by 100 sessions is 0.1). This number is then turned into a percentage. This is your conversion rate (10%).​

What is a good conversion rate?

CRO tips for using social proof.
CRO tips for using trust on websites.

A “good” conversion rate can vary wildly by industry, niche and price. For example, the average conversion rate for a landing page is around 4.02%, but this can differ significantly depending on what’s being offered and the specific action being measured​​. This may sound vague, but you should be able to find an industry benchmark to give you a good idea of what to aim for.

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What is a conversion goal?

CRO tips for urgency
Urgency is excellent for getting more conversions.

Conversion goals are specific outcomes expected after optimizing a web page or email. This could include increasing time spent on a page, attracting more subscribers, increasing free trial signups, or reducing shopping cart abandonment​​.

How will analytics help with conversions?

High converting landing page example and breakdown.
High-converting landing page example.

Analytics help in tracking the behaviour of visitors and identifying which areas of a web page or sales funnel need to be optimized. This data is crucial for understanding how to improve key metrics and conversion rates.

Conclusion.

conversion rate optimization terminology

It’s official: you now know more about conversion rate optimization than 99.9% of the World’s population.

Sure, you’re in the top 0.01%…

But don’t let that get to your head kid.

If you still have questions then get in contact.

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