So, you've hear of conversion optimization but you're just not sure what it is. What is conversion rate optimization? To begin let’s look at some definitions:
Put these three together and you get:
The act of improving the speed or frequency at which visitors become customers.
Wikipedia provides the following definition for Conversion Rate Optimization:
In internet marketing, conversion optimization or conversion rate optimization is the science & art of creating an experience for a website visitor with the goal of converting the visitor into a customer.
In plain English Conversion Rate Optimization is the process of testing variations of variables in order to determine which most effectively drives the user to take the action you want them to take.
Conversion Rate Optimization takes a current resource (traffic) and recaptures additional profits at no additional cost. The tools include online AB Testing, Multivariate testing, Usability Studies, and Heat Mapping.
Why Do Conversion Optimization
We've discussed before that taking the same aim at a target later might lead to completely missing the target? Marketers have discovered that consumer behavior is not consistent and online marketing response rates fluctuate widely from hour to hour, segment to segment, and offer to offer.
It seems that people have trouble separating chance events from real effects and at any given time marketers are limited to examining and drawing conclusions from small samples of data.
Psychologists have extensively documented tendencies which find false reasoning in small samples which explains why often poor decisions are made. Statistical methodologies need to be leveraged to study large samples and to make less severe the deduction of patterns where none exist.
Using these methodologies or conversion optimization techniques, you can then apply them to run real-time tests. The data collected can be used to increase the effectiveness of your online campaigns.
Do you continue to try and improve your conversion rate or are you happy with that you have?