Conversion Rate Optimization – CRO
Conversion Rate Optimization means strategically optimizing all the steps required to get targeted conversions on your website or app (purchase, forms, signup, etc.).
Digital Marketing Concepts for Conversion Optimizations
The following concepts are those that we need to know so that the conversion optimization and our service could be understandable.
What is a Conversion?
Conversion is that the completion of a transaction that an advertiser wants to be completed after a click on an ad. For example, the conversion for an e-commerce company may be the completion of an order by a user after a click on an ad, while it may be for a hardware store to click on the contact menu after a click on an ad.
What is the Thank You, Page?
A thank you page is a page that is shown to a user thanking them and indicating that the transaction has been completed after a transaction that is expected to be completed such as filling in a form, viewing a contact page, being a member of a web site, completing a purchase (shopping) by a user on a web site.
What is the Conversion Pixel?
The conversion pixel is a code snippet that counts the completion of the respective conversion transaction and that informs the Facebook servers that this transaction has been completed. One (1) conversion is counted whenever a conversion pixel is loaded. Therefore, this code should be placed only on the page, where the conversion transaction is completed and, the respective user is thanked, (the thank you page) so that it would be possible to robustly measure how many conversions are attained after a click on the ads.
Digital Marketing Metrics for Conversion Optimizations
The following metrics are frequently used for conversion optimization: Cost per Action, CPA, Return of Investment, ROI, and Conversion Rate.
What is the Cost per Action?
The metric the Cost per Action or the CPA is calculated by means of dividing the digital marketing cost by the number of conversions. Let’s say that you have spent an amount of TL 100 and, you have attained 20 members in total. In this case, the cost per action is calculated with the following formula 100 / 20 = TL 5.
What is the Conversion Rate?
The metric the Conversion Rate or the CR or the CVR is calculated by dividing the number of conversions by the number of clicks. Let’s say that you have spent an amount of TL 100 and, you have attained 1000 clicks resulting in 20 members. In this case, it is calculated as 20 / 1000 = 2% with the formula of “conversion/clicks”.
What is the Return of Investment?
The metric the Return of Investment or the ROI is calculated by dividing the money earned by the money spent in connection with the respective marketing activity. Let’s say that as an e-commerce company, you have spent an amount of TL 100 and attained an amount of TL 2,500 as turnover. In this case, the metric the Return of Investment is calculated as 2500/100=2500% using the income / expense formula.
How to Do a Conversion Optimization?
A Conversion Optimization takes place according to the type of conversion intended to be attained as a result of the respective digital marketing activity. It is divided into two types namely the Optimization by Return of Investment and the Optimization by Cost per Action.
Optimization by Return of Investment: Optimization by Return of Investment should take place according to the type of conversion intended to be attained as a result of the respective digital marketing activity. For example, it takes place in respect of an e-commerce company by means of increasing the amount of the offer per click pertaining to a group of ads that is above the average according to the metric the Return of Investment (ROI) and reducing the amount of the cost per click pertaining to a group of ads that is below the average according to the said metric.
Digital Marketing Optimization by Cost per Action: The optimization by the Cost per Action (CPA) is based on the principle that this figure is deducted for all the digital marketing activities. This enables you to get more conversions by reducing your cost per action. For example, the purpose of a bank is to sell loans and, it wishes to increase the number of forms filled in. Therefore, the budget for the cost per click for the ad target with the lowest cost of action out of the 3 different add targets for which an amount of TL 100 is spent, and thus more clicks are attained and, the optimization is achieved accordingly.
Boosmart Digital Marketing Agency is an expert in respect of Conversion Optimization in the field of Digital Marketing. We offer professional services to the brands, to which we offer digital marketing services in respect of conversion optimization
If you think that the Conversion Rate Optimization – CRO service is to meet your requirements, please feel free to contact us and let’s decide together what we can do for you.