Conversion Rate Optimization (CRO)

What is CRO (Conversion Rate Optimization)?

What is Conversion Rate Optimization?

Conversion rate optimization (CRO) is the practice of increasing the conversion rate in any business practice, whether it be advertising, marketing, or sales. In other words, it is the process of turning users into leads into customers intentionally.

Conversion rate optimization usually involves creating ideas from existing content and elements on your website that can be improved. These ideas are generated through deep data analysis. These improvements are done through split testing and multivariate testing, which help you generate, test, and possibly validate a hypothesis.

For a business to grow and thrive, it’s necessary to have a constant influx of leads, purchases, or discoverability, whether that is in the form of customers, search visibility, or products sold.

Conversion rate optimization is the process of converting new customers.

Why is Conversion Rate Optimization Important?

Conversion rate optimization is important because as a business, you have to be really mindful about costs and resources. It allows businesses to lower their customer acquisition costs by getting more value from the users and site visitors they already have. You’re actively increasing revenue per user which leads to acquiring more customers and eventual business growth.

Conversion rate optimization gives you a certain amount of control and helps you to be proactive. You have the power to make a better experience for customers all the time. This opportunity allows you to capture potential leads.

For example, if a solutions page has a conversion rate of 0.5% and receives 10,000 users a month, they are currently converting 50 users per month. By implementing CRO tactics such as moving the call to action above the fold or changing the color of the CTA button, we can potentially increase this conversion rate to 2%, increasing monthly conversions by 150 per month (+400%).

A graph showing how conversion rate optimization increases conversions over time.

How Is Conversion Rate Optimization Calculated?

The conversion rate is easily calculated. To get accurate calculations each time, you simply need to divide the number of conversions a webpage has generated by the number of page visitors. This way, marketers and brands can find the conversion rate of ad clicks, websites, landing pages, and blog posts.

For a quick visual, the equation looks like the following:

Conversion rate optimization formula.

Once you’ve calculated your current conversion rates, you can begin planning out new conversion goals and working towards ways to get more out of your existing website traffic. Of course, setting conversion goals is easier said than done.

When looking to improve the conversion potential of your website and various webpages, you must think about optimizing your conversion rates. The difference in optimization is that you get more out of your site visitors and more site visitors over time. You don’t just want 150 new conversions on a single webpage – you want 150 more conversions for every X amount of visitors who land on it. It’s all about the percentage of people who convert on your website.

Thankfully, there are three formulas to help you reach your goals and figure out how to handle conversion rate optimization for your company’s specific needs:

  • New Revenue Goal / Average Sales Price = # of New Customers
  • Leads Generated / Website Traffic X 100 = % Conversion Rate
  • # of New Customers / Lead-to-Customer Close Rate % = Lead Goal

These formulas should help you set specific goals for your company’s conversion rates, leading to a natural and substantial growth of your brand.

Conversion rate optimization increases conversions.

What Are Conversion Rate Optimization Best Practices?

Now that you know what conversion rate optimization is and how to do it, what are some of the best ways to get it done? To get started, the following are some of the best pages, to begin with when it comes to conversion rate optimization.

The Best Pages for Conversion Rate Optimization


Your homepage is one of the best spots for conversion rate optimization. Not only does the homepage make your brand’s first impression on visitors, but it is also the first space where the opportunity to retain those visitors and move them throughout your website comes up.

Some great ways to optimize this page are by emphasizing links to and about product information, incorporating a chatbot to help new visitors with questions, and even offering a free signup button for promotions, newsletters, and more.


Blogs come with a lot of conversion opportunities for your company’s website. Here you can publish all sorts of content that caters to questions your visitors may have, ideas and concepts related to your products, services, or industry, and more.

Blogs can use conversion rate optimization to convert readers into leads and even customers. This is done by including a call to action throughout or at the end of the article inviting readers to sign up for newsletters, promotions, trials, or free gifts.

Landing Pages

Landing pages are all about getting site visitors to take action, so they’re ripe for optimization. You can optimize landing pages with videos, images, infographics, preview content, and more, all depending on the type of page.

For example, if a landing page is talking about a certain area where you offer your services, you can optimize this page by adding some cool information about the area or a video of an event that took place there.

Conversion Rate Optimization Services with Directive

Conversion rate optimization is a great way to strengthen your website, but there’s more you can do and Directive can help. Get a free proposal from us today to go over how our conversion rate optimization services can boost your lead and business growth.

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