What is conversion rate optimization?

  • Conversion rate optimization in other words (CRO) is the systematic process of increasing the percentage of website visitors who take a desired action — be that filling out a form, becoming customers, or otherwise.
  • On the other hand, CRO process involves understanding how users move through your site, what actions they take, and what’s stopping them from completing your goals

How conversion ratios affect revenue?

For example,here we take a door to door sales man[RAM] selling soap .In this we can take a simple funnel with three stages.

  • Stage 1: Knock the doors.
  • Stage 2: Demos
  • Stage 3: Sales

Day 1 : Ram goes to a town and knocks around 100 doors . so,here ram has to show a demo to the responsive customer.

Day 1 : Ram, knocks 100 doors -show 10 demos – 1 sales

So,In day 1 the overall conversion ratio is 1%.

If Ram’s soap costs 10 rs,he made only 10 rs in a first day.

Day 2 : Ram goes to a town and knocks around 100 doors. so,here ram has to show a demo to the responsive customer.

Day 2 : Ram, knocks 100 doors -show 20 demos – 2 sales

So,In day 2 the overall conversion ratio is 2%.

If Ram’s soap costs 10 rs ,he made only 20 rs in a second day. 

He has optimized his sales by instead of giving a discount ,ram give a soap for free and in return you will see the result .

Day 3 : Ram goes to a town and knocks around 100 doors. so,here ram has to show a demo to the responsive customer.

Day 3 : Ram, knocks 100 doors -show 20 demos – 4 sales

So,In day 3 the overall conversion ratio is 4%.

If Ram’s soap costs 10 rs ,he made only 40 rs in a third day.

He  has optimized his sales by , instead of giving a discount.Ram give a soap for free [Buy 1 Get 1].

  • Stage 1: Ram improved the conversion ratio from 10% to 20%
  • Stage 2: Ram improved the conversion ratio from 10% to 20%
  • Stage 3: In the end ,Ram is making 4x times sales .At the first sale ram is making 1 sale over 100 door knocks.But now he is making 4 sale over 100 door knocks.

So,you have to know that in town,city or rural areas ,where ever you go Sales is not about door knocks.Sales is about increasing the Conversion Ratio at each stage.

Here’s a question for you.

RAM target 4 sales.

If you are a ram which one do you select?.

  • Knock 400 doors.

              or

  • increase conversions.

Types of conversions

  • Micro conversions and Macro conversions

Micro conversions example

  • Signing up for email list
  • Create an account
  • Adding a product to cart

Macro conversions example

  • Purchasing a product from a site.
  • Requesting a quote.
  • subscribing to a service

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