Conversion Rate Optimization
Let’s start by defining conversion… What we mean when we talk about conversion is when a visitor to your website takes an action that you want them to take.
Conversion optimization was born out of the need of e-commerce Internet marketers for lead generation and to improve their website's results. As competition grew on the web during the early 2000s, Internet marketers had to become more measurable with their marketing tactics. They began experimenting with website design and content variations to determine which layouts, copy text, offers and images will improve their conversion rate.
Optimization Process
Conversion Rate Optimization is the process of increasing website leads and sales without spending money on attracting more visitors by reducing your visitor "bounce rate".
A conversion rate is defined as the percentage of visitors who complete a goal, as set by the site owner. Some test methods, such as split testing or A/B testing, enable one to monitor which headlines, images and content help one convert more visitors into customers.
Optimization Approaches
There are several approaches to conversion optimization with two main schools of thought prevailing in the last few years. One school is more focused on testing as an approach to discover the best way to increase a website, a campaign or a landing page conversion rates.
The other school is focused more on the pretesting stage of the optimization process. In this second approach, the optimization process will invest a considerable amount of time understanding the audience and then creating a targeted message that appeals to that particular audience.
Optimization goals
The official definition of “optimization” is the discipline of applying advanced analytical methods to make better decisions. Under this framework, business goals are explicitly defined and then decisions are calibrated to optimize those goals.
The methodologies have a long record of success in a wide variety of industries, such as ecommerce, supply chain management, finance, and telecommunications routing. Goals should include maximization of conversions, revenues, profits or any combination thereof.