Blog article

What is conversion rate optimization + 4 simple steps to start optimizing right away

Over the last decades, the best way to grow an ecommerce business was to drive more traffic to your website. It was the easiest way to increase your market share and with it, to increase revenue. But in today’s crowded online marketplace, this strategy’s effectiveness is known to be limited.

The more effective way to increase your market share is to focus on converting more of your website visitors into customers. That’s where conversion rate optimization (CRO) comes in. CRO is the strategy of increasing your company sales via existing traffic and leads.

In this blog, we’ll take a deep dive into the meaning of conversion rates and why it’s critical for your company success to optimize these. Let’s dive in!


What is conversion rate?

Conversion rate is a measure of how well your website is converting visitors into customers. It is calculated by dividing the number of conversions, an action such as signing up for a newsletter or buying a product, by your total number of visitors. The higher the conversion rate, the more effective your marketing strategy.


The most common desired action is an eventual buy. The goal would then be to get as many website visitors to actually buy a product. If on average, 1 out of 200 visitors would buy a product, the conversion rate would be 0,5%. This would mean that your conversion rate is below the e-commerce industry's average of 1 to 4 %, and that it might be time to look at CRO.

What is conversion rate optimalization (CRO)?

Simply put, CRO is the practice of increasing the conversion rate. And it does so with smart tactics that let you optimize the percentage of website visitors who take a desired action.

As said, on average a solid conversion rate should be between 1% and 4%, although this is highly dependent on the specific industry you find yourself in. And of the conversion goal that you have defined.

With the conversion goal of sales, a conversion rate of 4% would be considered high. This signifies that your website offers a hyper personalized customer experience. Or that your brand has a strong fan base that used your company as a starting point in their customer journey.

The most important success factor in CRO is to what degree you understand your customer. To then transform that knowledge into hyper personalized customer experiences. Because the most effective way to optimize your conversion rate, is to show your customers what they want to see.

How to start with CRO optimization with 4 simple steps

There are many effective ways to start your CRO optimization journey. But it all starts with the right tool.

  1. Implement a CDP
    In order to know how to optimize your conversion rate, you need lots of data. To simplify the process of collecting and unifying data, you should start with implementing a customer data platform (CDP). This software enables you to integrate all your different data sources in one platform so that you gain a complete overview of all customer data.

    Our CDP, Datatrics, goes a step further. Out of the collected data, it creates predictive customer profiles of each individual customer. It lets you create hyper-personalized marketing campaigns, email campaigns and content easily. As an added benefit, it offers deep insights in all of the metrics that influence your conversion rate.

  2. Set your conversion goals
    When you have implemented a CDP, you should define your conversion goals. Don’t be afraid of aiming high, for there is a lot to gain with the smart personalization tools that a CDP offers. No experience with conversion rate goals? See if you can find industry averages online. This should be your minimum goal!

  3. Visualize the customer journey
    The customer journey is a wonderful tool to track the flow of the journey that your customer walks from becoming aware, to buying a product and beyond. A good CDP like Datatrics helps you to easily create the customer journey. Start by identifying all touchpoints and locate them in the different stages of the customer journey model. If you have all touchpoints in place, you should have a complete overview of all the interactions customers have with your company.

  4. Identify the most important touchpoints and optimize them
    The most important touchpoints have the strongest effects on your conversion rates. So start with defining which interactions are most important. Now, analyze their effectiveness. Are there visible bottlenecks? Do customers leave after this specific interaction with your company?

    If so, ask yourself how this touchpoint can be optimized. When you have come up with a solution, you could run an A/B test to measure the effectiveness of the new touchpoint compared to the old. Optimization is a continuous procedure, so you could come up with a wide range of possibilities and test which one is the most effective one.

    Repeat this for every single touchpoint for the best results. Optimize every one of them so that your customer experience becomes smooth and tailored to each individual customer’s specific needs. We assure you that this works wonders for your conversion rate!