Conversion Rate Optimization – CRO
Let’s look at some definitions of digital marketing before conversion optimization.
Digital Marketing Concepts in Conversion Optimization
The following concepts are the concepts that need to be known in order to understand the conversation optimization service and the concept.
What is Conversion?
A conversion is a completion status of a transaction which the advertiser wants to be completed after the ad is clicked. For example, a conversion for an e-commerce company, is the completion status of the user’s order after click, for a hardware store, clicking on the contact menu may be a conversion after click.
What is Thank you Page?
Thank you page is a page that is displayed to the user and thanking the user for the transaction after a desired process of completion such as filling out a form on a web site, displaying a contact page, subscribing to a site, completing a shopping transaction.
What is Conversion Pixel?
The conversion code is a code snippet that counts the completion of the corresponding conversion process and tells facebook servers that it is complete. A conversion is counted each time a conversion pixel is uploaded. For this reason, to keep track of how many conversions our ads have resulted after a click, this code should only be placed on the thank you page, that is, the thank you page that the conversion process is complete and where we thank the to the user for this.
Digital Marketing Metrics in Conversion Optimization
In conversion optimization, cost per action (CPA) and Return on Investment (ROI), Conversion Rate metrics are often used.
What is Cost per Action?
Cost per Action, in short, the CPA metric is calculated by dividing the cost of digital marketing spent by the number of conversions. Let’s say you spent 100 TL and you got 20 memberships in total. In this case, 100/20 = 5 TL is calculated as Cost per Action per member.
What is Conversion Rate?
Conversion rate is simply CR or CVR metric and it is calculated by dividing the number of conversions obtained by the number of clicks. Let’s say you spent 100 TL, you got 1000 clicks and you got 20 memberships. In this case the conversion rate is calculated as 20/1000 = 2% with the conversion / click formulation.
What is Return of Investment?
Return of Investment Rate, shortly ROI, is calculated by dividing the money earned at the end of the digital marketing activity by the money spent. Let’s say you spent 100 TL as an e-commerce company and you made a turnover of 2500 TL. In this case, the Return of Investment Rate metric is calculated as 2500/100 = 2500% with the income / expense formula.
How to do Conversion Optimization
Conversion optimization should be based on the type of conversion desired at the end of the digital marketing activity. The main types are divided into two as, Optimization according to Return of Investment Rate, and Cost per Action Optimization .
Digital Marketing Optimization by Return of Investment
Return of Investment Rate Optimization should be done according to the type of conversion desired to be achieved at the end of the digital marketing activity. For example, in an e-commerce company, it is done by increasing the bid amounts per click for ad groups above the average and lowering the cost per click of ad groups below the average according to Return of Investment Rate (YGO) metric.
Digital Marketing Optimization according to the Cost per Action (CPA) metric
Cost per Action (CPA) Optimization is based on the principle of reducing this number in all digital marketing activities. In this way, you can get more conversions by lowering your cost per action. For example, in a bank the purpose is to sell credit and it is desirable to increase the number of filled loan application forms. For this reason, from 3 different ad targets that spend $ 100, cost-per-click bid and the budget of the ad targeting which has lower the cost per action is increased and more clicks are taken and optimization is done.
Boosmart Digital Marketing Agency specializes in Conversion Optimization in digital marketing. Boosmart provides professional digital marketing services to brands in Conversion Optimization.
If you think that Conversion Rate Optimization (CRO) service is appropriate to your needs, contact us. Let’s decide together what we can do for you.