What is Conversion Rate Optimization? [Video FAQ]

What is conversion rate optimization?

Hi, I’m Nate Babbel and today I will answer the question: What is Conversion Rate Optimization?

Conversion rate is the percentage of total visitors that “convert” while visiting your site. Now depending on what type of site you have, a “conversion” will be different things, it can be a sale, a lead capture, a registration, a sign-up for a service, or any other call to action you choose to implement. So, if you have 100 people visit your site and 1 of them completes your call to action, you have a 1% conversion rate, if 2 of those 100 convert that would be a 2% conversion rate.

As you can imagine, conversion rate is extremely important. If you go from a 1% to a 2% conversion rate you are effectively doubling your total output, if your target conversion is a sale, you are doubling your total revenue!

Conversion rate optimization or the acronym CRO, is the art/science of increasing your website conversion rate.

Here are the top reasons to perform Conversion Rate Optimization on your site:

  1. You are getting more conversions from the exact same traffic you are already receiving.
  2. You have an edge over your competitors; which could make all the difference in the world in you being profitable and them not.
  3. If you are getting higher conversions with the exact same overhead this is a direct increase in PROFITS
  4. More marketing channels open up to your business – since you have a higher ROI, more types of marketing becomes viable.
  5. First mover advantage, if your competitors aren’t doing it now, they will be soon. So get started first!

We will discuss the best methodology for website conversion rate optimization in a later FAQ video.


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5 Comments

  1. Ignite Visibility says

    It is amazing how important conversion rate optimization really is! This is a great video that describes the basics, by making simple changes you can make your traffic work harder for you. Orange buttons, pop ups, smart copy, lots of great tests to do!

  2. syed furqan ahmed says

    Excellent information i have got it from here, but i want to ask, one question to you. If a site traffics visitors is increasing daily, which is intrupting bandwidth exceed limit, then what is the easiest way to solve their bandwidth exceed 509 problem issue.

  3. Jack H. says

    It’s true – simple changes such as making the checkout button on an e-commerce site that bit easier to find can increase conversions overnight!

  4. Rahul Gupta says

    Basically conversion rate reflects the goal completed that is whatever you set for example one can set the funnel that is set of path through which user passes and the goal completes.

  5. Nate Babbel says

    @Ignite Visibility: Yes! True conversion rate optimization can help you increase website revenue/profit by an exponential amount!

    @syed furqan ahmed: I am not sure on that one.

    @Jack: Yes, simple changes can make great improvements, but to see huge changes you usually need to make huge improvements. The most important thing is, TEST EVERYTHING!

    @Rahul: Agreed, for conversion rate optimization it is best to look at the entire conversion funnel, and then perform conversion rate optimization on it.

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