What is Conversion Rate Optimization (CRO)?

Conversion Rate Optimization (CRO) is the process of increasing the percentage of website visitors who take a desired action (known as a conversion).

Conversions on a website can include signing up for a trial, making a purchase, downloading content, or submitting a contact form. The goal of CRO is to test and optimize web pages to remove friction in the customer journey and make it as easy as possible for visitors to convert.

The importance of Conversion Rate Optimization

1. Improved customer experience

With all friction removed, customers can easily and seamlessly research, buy and get value from products. This convenience creates happy, loyal customers.

2. Increased ROI

CRO increases conversion rates across channels such as pay-per-click ads, affiliate programs and social media campaigns. As conversion rates increase, these channels deliver more customers for the same advertising spend.

3. Higher overall conversion rates

Small boosts in conversion rates of just 1-2% accumulate into big gains when repeated across thousands of visitors. An e-commerce site that earns 10 million kroner annually with a conversion rate of 2.5% will earn 300,000 kroner more per year with an increase of 1%. Optimizing multiple pages over time has an exponential effect.

4. Lower customer costs

With higher conversion rates, the cost of acquiring each customer decreases as you get more customers from the same traffic. This applies to all digital marketing campaigns and efforts spent on driving traffic.

5. Better understanding of customers

CRO tests reveal which content forms, topics, offers and designs resonate at each stage of the customer journey. After enough tests, clear winning patterns emerge around optimal page layouts, persuasive messages, effective call-to-actions, value communication and more.

6. More effective marketing

CRO provides crystal clear data on the highest converting marketing channels, campaigns, landing pages and assets. The budget is reallocated to the tactics that show the best performance. Marketing dollars are not wasted on underperforming efforts.