You might have heard the term Conversion Rate Optimization (CRO) many a times and might have wondered what it is. Let us look into the details of CRO and why it is very important for ecommerce websites. To understand it in a better way, we need to divide CRO into three parts, Conversion, Conversion Rate and Conversion Rate Optimization. Let us look into the details of all three.
In case of ecommerce websites, a conversion can be a purchase made from the site. Some of the users might land on your webpage, go through the various products and catalogs, and then purchase something of their interest. This can be considered the main type of conversion happening in an ecommerce website. An online web store can have many other different types of conversions. These are usually called micro conversions. Creating a customer account, signing up for a newsletter, reviewing a product, redeeming a coupon etc can be considered a micro conversion.
Now you have an idea about conversion and it is time to understand what conversion rate is. It is simply what the name suggests. It is the ratio of users that are converted to buyers when they visit your ecommerce website. The aim of online sellers should be to increase the conversion rate to have more profit. How can ecommerce website increase its conversion rate? This is where conversion rate optimization comes to play. Let’s see what it is.
Conversion Rate Optimization
Conversion Rate Optimization refers to all the steps and strategies that you take to improve sales and conversion in your ecommerce website. The aim of conversion rate optimization is to improve sales so as to convert more and more of your visitors to customers. CRO considers the behavior of your customers especially those that visit your website often and works to increase the number of visitors who are converted to buyers. The CRO strategies are not about increasing the traffic to the ecommerce website, but aims at improving the engagement of the visitors, so that they are converted to buyers.
From the above discussion, it might be clear that the goal of CRO for ecommerce is to increase the number of people who buy from the website, opposed to the total number of people visiting the site. CRO for ecommerce should be different from CRO for any other type of website, as ecommerce webstore is not same as any other store.