Conversion Rate Optimization: The Definitive Guide

What Is Conversion Rate Optimization?

Conversion rate optimization (CRO) is the process of increasing the percentage of visitors who perform a desired action on your website. This could be anything from buying a product, signing up for a webinar, interacting with live chat, to enrolling in a course upsell.

But increasing conversions is not the be-all and end-all of CRO.

At its core, it’s about diving deep to understand your customers–figuring out what makes them tick, what they need, and how you can smooth out their journey to take the action you want.

It’s not just guesswork, either. It involves a lot of testing and experimentation.

You try different things. See what works and what doesn’t.

And then use those insights to create an experience that’s not only easy for your customers but also gets them to convert more effectively.

Why Is Conversion Rate Optimization Important?

Well, higher conversion rates generally translate to increased revenue. That’s an obvious win.

Apart from that, it’s also an effective strategy for reducing your customer acquisition costs (CAC) and increasing your ROI.

Imagine you’re running an ecommerce website.

You spend $10,000 a month on advertising, which brings in 1,000 visitors. Out of these, 10 end up making a purchase, meaning your CAC is $1,000 per customer ($10,000 ÷ 10 customers).

Now, let’s say you implement CRO strategies on your top landing pages.

These changes lead to a better customer experience, encouraging more visitors to complete a purchase. As a result, your conversion rate doubles from 1% to 2%.

With the same advertising spend of $10,000, you now get 20 customers instead of 10.

This halves your CAC to $500 per customer ($10,000 ÷ 20 customers).

That’s the kind of numbers that make us happy, right?

But CRO’s value isn’t just in immediate gains.

You’re also playing the long game.

You’re consistently learning about your customers and understanding their buying psychology.

This is priceless.

These insights you gain through CRO allow you to continually refine your site to meet customers’ needs and drive even better results over time.

Establish Clear Goals and Benchmarks

Before you dive into the CRO nitty-gritty, get clear on your overarching goals so you don’t get sidetracked by overwhelming data.

Start with the big picture. What are your key objectives?

• Boost revenue?
• Grow your customer base?
• Ramp up user engagement?

This goal will inform your strategy.

If your primary goal is to boost revenue, you might hone in on upselling or increasing the average order value.

But if you’re looking to grow your customer base, you’d likely focus on improving your site’s user experience to attract and keep new visitors.

For benchmarks, industry standards are a good starting point.

What’s even better?

Your own business’s numbers.

Here’s how to approach this:

Begin by clearly defining your goal.

This varies depending on what you want to achieve.

For example, maybe you want to:

• Boost overall revenue by 30% in the next 90 days
• Increase Google Ads conversion rate from 1% to 1.6%
• Reduce customer acquisition cost from $50 to $40

Pick one primary goal to focus on.

The more specific, the better.

A well-defined goal will guide your efforts and make it easier to measure success.

Got that goal? Great.

Now, it’s time to dig into your data.

Say you’re using Google Ads.

What’s your conversion rate?

How many people are clicking on those ads and then actually doing something like buying your product, signing up for your webinar, or downloading your ebook?

That becomes your starting line–your benchmark.

And this is where it gets real:

You know your goal and where you’re starting from. Now, the big task is to close that gap. Let’s figure out how to get from where you are to where you want to be.

Get Your Conversion Optimization Tools in Order

Picking the right conversion optimization tools can be overwhelming.

The trick is to zero in on tools that meet your specific needs.

Here are the choices available:

• User behavior analysis tools: Get data on user interactions with your site through heatmaps, scroll maps, and more. Think Microsoft Clarity or Hotjar.
• A/B and multivariate testing tools: These are great for comparing different webpage versions. Look at Optimizely Experiment or VWO.
• Conversion funnel analysis tools: Tools like GA4 are super for tracking user paths to conversion, helping you pinpoint where they’re dropping off.
• Landing page builders and optimization: Want to build landing pages quickly? Try platforms like Unbounce or Leadpages.

5 States of Awareness

The stages of awareness are central to effective CRO.

The stages are:

• Unaware
• Problem-aware
• Solution-aware
• Product-aware
• Most-aware

Individuals at the unaware stage don’t know they have a problem.

In the problem-aware stage, they recognize they have a problem but haven’t yet found a solution.

Those at the solution-aware stage are aware of potential solutions but haven’t encountered your specific product.

Product-aware readers already know about your product.

Finally, those in the most-aware stage have researched your product and are considering buying.

Why are these stages important?

Because each stage requires a different approach to how you talk to them.

• For those in the problem-aware stage, content should empathize with their challenges and subtly introduce your solution.
• For solution-aware readers, landing pages that compare various products or case studies that highlight the superiority of your product are effective.
• For buyers in the product-aware stage, convincing them to make a purchase often involves showcasing demos or sharing positive customer testimonials.
• Lastly, for the most aware customers who are on the verge of buying, offers or discounts can be the final push they need to convert

Note: Often, CRO experiments tend to allocate less focus on the unaware stage, partly due to the challenges associated with tracking conversions at this early phase.

The Trio of Marketing Success: List. Offer. Copy.

In a marketing campaign, three core elements drive conversions:

High-quality list meaning the right audience

A compelling offer that’s relevant and attractive to the audience

Engaging copy and design, optimized to convert

Here’s the deal:

Copy and design matter. But they’re part of a larger equation.

In fact, they’re not as impactful as the other two elements—your audience and your offer.

The point?

Don’t limit your optimization efforts to polishing your copy and tweaking your design.

Pay equal attention to aligning your offer with your audience’s needs and interests. And attracting the right audience, who are most likely to be influenced by your offer.

It’s this mix—the right people, the right offer, plus great copy and design—that truly boosts conversions.

Qualitative Research

Qualitative research gives you the “why” behind customer behaviors. Why they visit your site, seek certain solutions, and choose or ditch products.

This understanding lets you craft a webpage that hits a deeper chord.

There are many ways to conduct qualitative research, including:

• Customer surveys
• Interviews
• User testing
• Message mining
• Usability testing
• Insights from the sales team

Customer Surveys

Surveys are the easiest way to get insights straight from your customers.

Use tools like Typeform to gather these insights.

Surveys can be as simple as a pop-up on your website like this one by EngageBay.

Customer Interviews

Customer interviews may sound daunting, but the insights you gain about the psychology of your buyers make interviews well worth it.

Specifically, you want to ask questions that help you figure out why people DO and DON’T convert.

For example, if you run an SEO agency, ask current clients and site visitors questions like:

• What’s the #1 reason you want to hire an SEO agency?
• What other SEO services have you considered?
• What kind of price range are you comfortable with?
• What would make you say: Yes, this agency is right for me?

Message Mining

Message mining is like eavesdropping on your audience’s unfiltered thoughts and emotions. It involves listening to your customers’ online interactions—emails, chats, social media conversations, and sales demos—to uncover hidden gems of insight.

Here’s how to do it:

• Discover online communities: Find the spaces where your users hang out
• Listen actively: Take notes of recurring topics, problems, or desires relevant to your product or service
• Refine your messaging: Use these insights to fine-tune your copy

Conversion Rate Optimization Steps

A data-driven approach to conversion rate optimization typically follows a set of key steps:

1. Research: Start by digging into user data
2. Hypothesis: Make educated guesses on improvements
3. Prioritization: Choose the most promising tests
4. Design and Build: Create what you’ll test
5. Testing: Run your tests and gather data
6. Learn and Iterate: Analyze and refine your approach

What to Split Test First

One of the biggest questions people have about split testing is:

“What do I test first?”

It’s a tough question to answer. After all, there are a million things that you can test on your site—headlines, pricing, button copy. You name it.

That said, here’s what you could try:

1. Start with High-Traffic Pages

This is simple math.

When you improve the average conversion rate on a page that gets a lot of traffic, the increase in conversions can be substantial.

2. Target Your Worst-Performing Pages

Alternatively, tackle pages with really low conversion rates.

They’ve got the most room for improvement.

Sometimes, you can see a massive leap in conversions, even with a single test.

In cases like these, consider a full overhaul rather than minor tweaks.

3. Let The PIE Prioritization Framework Tell You

The PIE Prioritization Framework is a widely used method for prioritizing CRO tests. It helps you pick tests based on their potential impact, importance, and how easy they are to implement.

Run an A/B Test

Ready to run an A/B test? Here are our two cents on doing it right:

First off, go big with your tests.

A common mistake in A/B testing is to focus on the minor details, like button colors.

What you really want is to test two starkly different page versions against each other. Once you spot a winner, you can fine-tune it with smaller tweaks.

For example, when we ran a test on the Backlinko homepage, we could have tested many small things—button copy, logos, headline fonts, you name it. But instead, we went for a major overhaul.

Specifically, our old homepage linked to our recent blog posts.

So we decided to test that original design against a version that offered a free case study in exchange for an email address.

And guess what? This major change led to a major increase in signups. That’s the power of testing big differences first.

The Rule of One

A high-converting page sticks to the Rule of One.

This means the page is laser-focused: made for one reader, built around one big idea, offers one solution, and directs toward one call to action.

So, let’s say your lead magnet landing page is offering a free ebook titled “Gardening 101: A Beginner’s Guide.”

In that case, every part of the page—from the headline: “Transform Your Backyard: Learn Gardening Basics Today” to the call-to-action button saying “Download Your Free Beginner’s Guide Now”—should be explicitly tailored to appeal to gardening newbies, clearly explain the ebook’s benefits for new gardeners, and encourage them to download it.

Guide Users With Directional Cues

Directional cues can guide the user’s gaze to specific parts of your page.

For instance, an image of someone looking towards a CTA can naturally draw the viewer’s attention in that direction.

Or an arrow pointing toward your key content can subtly lead the user’s eyes.

Optimize the Hero Section

Want to reduce bounce rates? Start with optimizing your hero section or above-the-fold content—the first thing visitors see on your site.

To do this, craft a hero section that directly addresses the visitor’s intent, is clear, and assures the visitor that they’re in the right place.

Up Learn’s homepage hero section is so specific and clear that it instantly hooks any student interested in getting an A*/A grade.

Optimize Subheadings for Better Reader Engagement

Subheadings (also called crossheads) are the scanning points for website visitors.

They catch people’s eyes and help them decide if they want to keep reading.

If subheadings are catchy, people are likelier to read the rest of the content.

But if they miss the mark, people might skip the rest of the content, even if that’s where all the juicy stuff is.

So here’s a pro tip:

Use your subheadings to make visitors curious and eager to keep reading.

Here’s how you can use them to get visitors’ attention:

• Provide instant clarity by being specific.
• Create a sense of intrigue that compels readers to want to read more.
• Give a preview of the content that follows without giving away too much

Nord VPN’s subheadings, for example, all support their value prop.

Use Persuasion Techniques (Without the Sleaze)

Persuasion doesn’t have to be this sleazy tactic to manipulate people into purchasing products they don’t want or need.

Instead, think of persuasion as the art of giving buyers the right information to help them make informed decisions.

Leverage Loss Aversion

Loss aversion taps into our desire to avoid losses more than to gain something.

It’s powerful.

Studies show we’re wired to strongly avoid losses.

For example, “Stop losing customers” hits harder than “Get more customers”.

Black Friday is a great time to tap on loss aversion. Here’s GetResponse’s Black Friday deal doing exactly that.

Counter Objections Head-On

Address common concerns to show transparency and build confidence in your offer.

By proactively addressing these objections, you answer potential questions and also demonstrate that you understand and care about your customers’ concerns.

Common objections include:

• Why should I believe you?
• What if it doesn’t work for me?
• It’s not worth the money.
• How does this compare to…?

Here’s an example of this technique in action:

Lead with Social Proof

Here’s something not seen in a lot of online stores.

Ezra Firestone, an ecommerce marketer, is known for conducting conversion experiments. He consistently outperforms the control every time he employs this tactic.

Here it is:

On a product page, lead with a testimonial instead of leading with the product name.

Ezra’s tests reveal that both the average revenue per user (ARPU) and the conversion rate increase whenever they use this approach.

If you’re hesitant to open with a testimonial, you can also experiment by placing it just below the product name. Like so:

Make Likes More Prominent for Already Popular Products

Research suggests that social media likes significantly influence the likelihood of making a purchase. This effect is particularly pronounced when consumers make decisions related to hedonistic goods—products that provide pleasure and gratification.

Embrace Lifestyle Shots

Give your audience the gift of imagination by helping them visualize your product as a natural part of their everyday routine.

Take a cue from Huel.

In the image above, Huel isn’t just selling instant meals. They’re selling a lifestyle.

The imagery suggests an on-the-go, health-conscious person. And Huel, as a smart, practical choice for these folks.

Experiment with Different Product Pricing

The old .99 tactic to pricing?

That still works. But not always.

If you’re selling utilitarian products, the .99 approach could still work.

But not just because it’s discounted. It’s also the pricing precision.

According to this study, pricing a product at $39.99 or even $39.70 can give the impression of careful cost calculation—which buyers might find more appealing especially for hedonistic products—than a rounded $40.

On the other hand, for products that are associated with long-term value, like retirement plans or energy-efficient windows, precise pricing may be more attractive.

Use Price Anchoring

Want to make your products seem dirt cheap without slashing prices? Try price anchoring.

Strike-through pricing is the most common way ecommerce stores do this.

Provide a Guest Checkout Option

Buyers want a fast checkout. That’s good for you.

But you have to make it smooth and easy for them.

The best way to do this? Guest checkout.

Forty-three percent of consumers in Capterra’s 2022 Online Shopping Survey agree.

Sure, big players like Amazon can make it work, but a guest checkout option is valuable if you’re running a smaller ecommerce site.

Test Live Chat Support

Zendesk reports that 92% of consumers like Live Chat support because of the swift response.

Another study by Monetate Ecommerce showed that live chat boosted average order value (AOV) by 3%.

You can try an actual live person or an AI chatbot for live chats. And compare the impact of a live person versus an AI bot on conversions.

Make Site Search Intuitive

Analyze your visitors’ buying habits. This includes how they usually search for products on your site or a search engine. Use this information to make it easy for shoppers to find what they want.

Pay attention to the products that people search for the most. And make those popular products easier to find.

For example, you can feature them on your home page or at the top of a category page.

Great Jones Goods features bestsellers on their drop-down navigation.

If You Offer a Money-Back Guarantee, Flaunt It

A strong money-back guarantee boosts buyer confidence. It influences how buyers perceive the risk associated with the purchase.

This tactic is especially effective for products that might initially trigger skepticism.

For example, Scandinavian Biolabs’ product page clearly outlines the guarantee—giving buyers a clear understanding of what to expect.

Optimize for Mobile Buyers

If you haven’t optimized your ecommerce site for mobile phones and tablets, you need to hop in your DeLorean and leave 1998 in a hurry.

Gone are the days when mobile optimization was just an extra feature. With over 57% of web traffic from mobile devices, you can’t afford to overlook this audience.

Ensure that the mobile shopping experience on your site is as seamless and user-friendly as it is on a desktop. This includes having a site that loads fast, features a straightforward checkout process, and is easy to navigate.

Leverage AI-driven Insights and Predictive Analytics

Use AI to get deeper, predictive insights into your customers’ buying behavior.

Using customers’ past searches and buying patterns, you can better segment and personalize content to each shopper. Crazy, huh?

Tools like FindMine make it easy for ecommerce websites to create content using predictive analytics.

Optimize CRO Processes with AI Tools

From content personalization to user journey mapping, there’s an AI tool for that.

Check out Unbounce’s Smart Traffic, which analyzes live data and adjusts website elements in real time based on user interactions.

You don’t even need much traffic to test which variation converts better for your customers.