Plunge inside the mystery of Conversion Rate Optimization- Part 1
The secrecy, unfamiliarity and limited exposure around a thing makes it more important and “most sought after” item for everyone. This is because it creates the much needed hype and curiosity among targeted customers that makes it such a rage. Conversion rate optimization is one such phrase that is used by every other online business entity and has grabbed the fancy and imagination of everyone around. If you are not able to break the much needed aura and mystery around this eCommerce KPI, your business will surely meet the unexpected fate among your rivals. Moreover, unfamiliarity or limited knowledge about this terminology that can lead to severe loss of conversions, sales and customer engagement. Let us understand more about this metric that is one of the main indicator that can decide the success or failure of your online business.
Conversion rate is finally demystified…
Conversion rates are defined as the motive or the intention which is responsible for the setup of an online business entity. There are no strict guidelines or activities that make up the conversion rates for any web based businesses. It can be anything depending upon the nature of business, type of customers being targeted and expectations of a business entity. In simpler words, Conversion rate optimization consists of all those efforts, practices and techniques that are undertaken to persuade customers to perform the required action as directed by various call- to- action buttons on a site.
These conversion rates can be increased product views and sales for an eCommerce store, increased sign ups for a site, more customer registration for free software trial in case of Saas based companies, newsletter subscriptions, higher clicks on a links, more download of free ebook and other such activities. It is calculated by measuring the number of converted visitors against total number of visitors arriving on a site.
Let us take a example, there are 50 people that came on an eCommerce site. Out of these, 20 finally made a product purchase and gets converted from visiting customers into potential customers. Now, in this case, the required conversion rates is achieved by:
Conversion rates = Number of converted visitors/Number of total visitors of site * 100 which means 20/50*100 = 40% .
Thus, the conversion rates achieved in the above scenario is 40%. It would be hypothetical to expect 100% conversion rates for any online business due to various limiting factors like site loading speed, checkout process, website design and navigation, landing page, shipping services, payment options, customer services and other such components. However, you can get a significant level of site traffic, customer engagement, conversion rate optimization and sales by utilizing the services of an extraordinary A/B testing and heat map tool like Mocking Fish that can create a huge difference.
To know more about the impact of this tool on your web based business, stay tuned to the next part of this blog that can guide you towards achieving optimum business results in terms of higher sales and improvement in conversion rate optimization efforts.