CRO Fundamentals

The Core Fundamentals of Conversion Rate Optimization

Ervin Prislan
November 28, 2024
7min read
Linkedin

Did you know that most websites convert only 2.35% of their visitors into customers, while top performers achieve rates over 11%?

The real game-changer isn’t getting more visitors - it’s making the most of who’s already showing up. This is where Conversion Rate Optimization (CRO) comes in.

By studying visitor behavior, testing changes, and improving website elements based on real data, your business can transform more browsers into buyers. The best part?

Even a small 1% increase in conversion rate can mean thousands in extra revenue without spending more on advertising. We will explain exactly what we track,how our processes look and what our customers say about us.

What is Conversion Rate Optimization

Conversion rate optimization (CRO) is the process of increasing the percentage of your website visitors who take desired actions like making purchases or signing up for newsletters.

We believe the key to successful online business is turning more of your website visitors into customers or subscribers. When you understand how people use your website, you can make changes that encourage them to take action, leading to more sales and better engagement.

We analyze user behavior to spot what works and what doesn’t on your website. Using tools like Google Analytics, we can see exactly where visitors might get stuck or leave. For example, if we notice that 70% of your potential customers abandon their carts during shipping information entry, we know that’s where we need to make improvements.

We start by setting clear goals for what we want visitors to do on your website. These goals depend on your business type - whether you’re selling products, gathering leads, or sharing content.

We use specialized tracking tools to watch how people interact with your site, giving us solid data to make meaningful improvements that work for your business.

12 Key CRO Metrics and KPIs we closely monitor

Key performance indicators (KPIs) form the backbone of any successful conversion rate optimization strategy, with metrics like conversion rate, bounce rate, and click-through rate (CTR) providing essential insights into user behavior.

Average session duration and pages per session help measure engagement levels, revealing how deeply visitors interact with your content before making conversion decisions.

Conversion Rate

Let’s start with the basics first and define what conversion rate is….

It’s a value that shows the percentage of website visitors who complete a desired action like making a purchase, subscribing to your newsletter or calling you through your website. We calculate it by dividing the number of conversions by total visitors and multiplying by 100.

We monitor how users interact with your website to help improve its performance. When you understand how visitors move through your site, you can spot where they might get stuck or leave. For example, we might find that people using phones abandon their shopping carts more often than those using computers.

We use tools like Microsoft Clarity and Google Analytics to watch how people behave on your site. These tools show us where visitors click, how far they scroll, and which pages they visit most. This information helps us find ways to make your website work better for your customers.

Every business is different, so what counts as a good conversion rate varies. Your industry, target customers, and business type all affect what you can expect.

Bounce Rate

When someone visits just one page and leaves your website, we call this bounce rate. By our experience informational type websites have bounce rates over 90% which is totally normal as people come to read certain info and leave. But in the ecomm and service business, we would consider rates between 26-40% good for mobile sites, while anything over 50% needs fixing.

We know several things make people leave websites quickly: slow loading times, difficult navigation, and websites that don’t work well on phones. We use special tracking tools to see how visitors behave on your site. These tools show us exactly where people get frustrated and leave, which helps us fix the problems.

We can help you lower your bounce rate through constant improvements based on real data. This means making your website work smoothly on all devices, testing different versions to see what works best, and ensuring everything runs perfectly on mobile phones.

Average Session Duration

When you divide the total time of all visits by the number of visits you will get average session duration. This is the average time people spend on your website during one visit.

We track this metric in Google Analytics to understand how visitors interact with your website. A healthy session duration usually ranges from 2 to 5 minutes. When we see sessions lasting less than a minute, it often signals a problem that needs attention.

Looking at industry averages can help, but we recommend focusing on what works for your specific goals and audience. We know that longer sessions typically lead to better conversion rates.

We can help you increase your session duration by creating content that keeps visitors engaged. Adding videos, interactive tools, and infographics encourages people to stay longer on your site.

We also recommend making your navigation simple and clear so visitors can easily find what they’re looking for.

Pages per Session

On the other hand we check pages per session, which measures how many pages visitors view during one visit to your website. It is calculated by dividing total pageviews and total sessions. A higher number normally means visitors are exploring more of your content.

Most successful websites see 4.0 or more pages per session, while average sites range between 1.7 and 4.0 pages. Secret sauce? - link related content naturally like you could see in this post.

We’ve also found that well-placed call-to-action buttons and personalized content suggestions help keep visitors moving through your site.

TIP: To see how visitors move through your pages go to Google AnalyticsEngagement tab in the left sidebar.

Normally where people leave your site  shows spots, where we need to improve it. Making your site structure clear and ensuring relevant content will encourage visitors to view more pages. This leads to more chances for conversions and better website performance overall.

Click-Through Rate (CTR)

Click-Through Rate (CTR) measures how many people click on your ads or links compared to how many people see them. We calculate it by dividing clicks by views and turning it into a percentage.

CTR is important because it shows how well your ads connect with people. Think of it as your first step in getting customers - when someone clicks, they’re showing interest in what you’re offering.

A good CTR doesn’t always mean you’ll get sales. We’ve seen many cases where ads get lots of clicks but few sales. This often happens when your ad promises something different from what people find on your website.

Write ads that speak directly to your audience’s needs, and make sure your website gives visitors exactly what your ad promised.

Your CTR gets people to your site, but it’s your website’s job to turn them into customers.

Cart Abandonment Rate

For ecomm businesses, one of the most annoying things is when online shoppers leave items in their shopping cart without completing the purchase. We call this metric cart abandonment rate. Right now, about 70% of online shoppers abandon their carts before buying.

We know this is a big problem for online stores, so we’ve studied the most effective ways to help you reduce it. When shoppers leave items behind, it’s often because of surprise costs, being forced to create an account, or a complicated checkout process.

One of our strategies, we implement to our customers are recovery emails. They are designed to bring our abandoned cart customers back. Tools like Klaviyo can help you send these emails automatically.

For best results, we combine these emails with customer reviews and special offers tailored just for your business.

Our experience shows that when you tackle these issues head-on, you can significantly reduce how many people abandon their carts and increase your sales significantly.

Lead Generation Metrics

Not all our clients are E-comms. When we are talking about service based businesses, leads come into play. With key lead generation metrics we track and measure how well we’re turning visitors into potential customers.

The key measurements include how many people fill out your forms, sign up for emails, download your content, and become qualified leads.

We use tools like Google Analytics and Microsoft Clarity to see how visitors interact with your website. These tools show us where people click and how they move through your pages.

For example, we helped a business software client increase their sign-ups by 34% simply by shortening their form from twelve fields to six.

We focus on tracking costs per lead, lead quality, and how long it takes to convert visitors into customers.

Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) is a really important metric for planning. It tells you how much revenue you can expect from a customer throughout your entire business relationship.

We believe understanding CLV helps you make smarter decisions about how much to spend on getting and keeping customers. When we look at three main factors - how much customers spend, how often they buy, and how long they stay with us - we can better predict their long-term value to your business.

This table shows how each CLV part affects your strategy:

CLV COMPONENT BEST PRACTICE
Purchase Value Guides upselling opportunities and pricing strategies
Purchase Frequency Influences retention campaigns and loyalty programs
Customer Lifespan Shapes long-term engagement tactics
Optimization Focus Determines personalization and testing priorities

We recommend grouping your customers based on their potential value. Our experience shows this works - we’ve helped online stores cut their customer acquisition costs by 30% by focusing on high-value customers.

Your success depends on tracking results and adjusting your approach through targeted emails, rewards programs, and smart upselling. Keep in mind that keeping just 5% more customers can increase your profits by 25-95%.

Return on Ad Spend (ROAS) - Conversion Rate Optimization

When you’re trying to improve your conversion rates, you need to pay attention to ROAS metric. It measures how much money your ads make compared to what you spend on them, which tells you exactly how well your advertising dollars are working.

We’ve found that ROAS is more useful than just looking at cost per acquisition because it shows the actual money your conversions bring in from different sources.

For your e-commerce site, you’ll need to track the value of each sale in real-time. If you’re generating leads instead, you can set fixed values based on how often leads become customers and how much they typically spend over time.

To get better results on Google Ads, we recommend sorting your campaigns into groups, studying which search terms work best, and adjusting your bids based on who’s clicking.

While different businesses need different results, we typically see successful campaigns making $3-4 for every $1 spent on ads.

Net Promoter Score (NPS)

Net Promoter Score (NPS) helps us measure how likely your customers are to recommend your business to others.

It’s a simple way to understand customer loyalty. We calculate NPS by asking customers to rate their experience from 0 to 10. Those who give 9-10 are promoters, while those scoring 0-6 are detractors. We subtract the percentage of detractors from promoters to get your NPS.

We track scores before and after you deliver products or services. We look at different customer groups based on their buying habits, preferences, and how they interact with your business. We also keep an eye on customer feedback as it comes in.

With one of our client ( large online store), we analyzed  NPS across different product lines and found specific problems affecting their sales. They fixed these issues by making checkout easier and improving product descriptions. This led to happier customers and better sales.

TIP: Don’t ignore any responses, treat all customer feedback equally, and avoid oversimplifying by just taking averages. NPS is most valuable when we use it to spot and fix specific problems in your business.

A/B Testing Metrics

A/B testing metrics are measurements we use to understand how well different versions of your website or product perform.

We track specific numbers to measure how your changes affect user behavior and business results. Your core metrics should include conversion rates (how many visitors take desired actions), time spent on your site, and user interactions per visit.

We recommend using frameworks to organize these measurements. The HEART framework helps us track user happiness, engagement, adoption, retention, and task success. Another useful approach is Pirate Metrics, which measures acquisition, activation, retention, revenue, and referral rates.

We’ve seen real success with this approach. In our experience with a SaaS client, we improved their sales by 23% by watching both direct sales numbers and how long people spent reading pricing information.

Your North Star metric matters most - it’s the one number that truly shows your business success. While we rely heavily on numbers to make decisions, we also need to listen to what users tell us directly. This feedback explains why the numbers change and helps us make better improvements for you.

A North Star metric is the metric that matters most. For a ride-sharing app, it might be weekly rides per user. For a social media platform, daily active users. For a productivity tool, time saved. This single metric captures how well your product solves users' fundamental problem, providing a clear, focused benchmark for success.

While we rely heavily on numbers to make decisions, we also need to listen to what users tell us directly. This feedback explains why the numbers change and helps us make better improvements for you.

Exit Rate

We measure exit rates to understand where visitors end their journey on your website after viewing multiple pages. This tells us which pages might be causing problems in your conversion process.

Most successful websites keep their exit rates under 40%, with top performers staying below 25%. When we look at exit rates along with bounce rates and page views, we can spot issues in your website’s performance. High exit rates on content pages often mean the content isn’t meeting visitor expectations or if many people leave during checkout, there might be problems with your payment process.

We recommend several ways to lower your exit rates and get more conversions. One of them is adding customer reviews and trust symbols to your key pages.

We find it’s best to look at exit rates based on where visitors come from, what devices they use, and how they behave on your site. This helps us create better solutions for you.

Why is CRO important for your business?

Implementing Conversion Rate Optimization (CRO) represents one of the most cost-effective ways to boost your business performance, as it maximizes returns from existing traffic without requiring additional marketing spend.

Increase Your ROI Without Increasing Costs

You can boost your ROI without spending more money by making your existing marketing work harder.

This means we improve how your website turns visitors into customers. When we improve your user experience and make it easier for people to take action, you’ll get more sales from the same number of visitors.

We look at real data as mentioned above to find where your website can perform better. Through careful testing of different page layouts, buttons, and content, we discover what works best for your audience. We use advanced tracking tools to measure every change, so you know exactly what’s improving your results.

The smartest way to increase your returns is to make the most of what you already have. We study how people use your website, adjust where we place important buttons, and make navigation simpler.

Deliver a Superior Customer Experience

We know that better customer experiences lead directly to more sales - 84% of companies see this in their revenue numbers. This is why we put your customers at the center of everything we do.

We use advanced tools to understand how your customers behave and what they want. By tracking their actions and testing different approaches, we can spot problems and fix them quickly.

Looking ahead, we’re preparing for a future where 95% of customer interactions will use AI by 2025. This means we can create personalized experiences for each of your customers while handling large numbers of interactions.

In the future, some customer interactions will be personalized. By analyzing user behavior and using various modern AI tools, we’ll be able to design custom experiences that will further increase conversions and strengthen the relationship between the customer and your brand

When we improve your customer experience, we don’t just increase your sales - we help you build lasting relationships with customers who’ll keep coming back.

Make Data-Driven Improvements

We use real numbers and testing to improve your website’s performance. We study how people use your site and make data-driven smart improvements based on what we learn.

By checking the data and running careful tests, we make changes that actually work instead of guessing what might help. 9.

With this approach, we see in general landing pages improve from 10% to 15% in conversion rates. We watch how users interact with your website, finding where they get stuck and what makes them leave.

Testing new ideas is something that never ends because we know about 12% of our experiments lead to wins.

With this approach, we see general landing pages improve from 10% to 15% in conversion rates. We watch how users interact with your website, find where they get stuck and what makes them leave.

Testing new ideas is something that never ends because we know about 12% of our experiments lead to wins.

We look at everything from how many people leave your site quickly to which paths they take before buying. Sometimes we find surprising insights - like how important a good search feature can be for sales.

Fuel Sustainable, Long-Term Growth

When we optimize your website’s conversion rates, we help you get more value from your existing traffic without spending extra on marketing. Think of it as making your current resources work harder for you.

We know that even small improvements add up significantly over time. For example, when we increase your conversion rate by just 5%, you could gain hundreds of new customers each month. While only 12% of optimization tests succeed, the ones that do can really improve your business results.

Our approach to sustainable growth is ongoing. We continuously test, learn, and improve your website based on real user behavior and market changes without relying on constantly increasing your marketing budget.

To maintain strong conversion rates for your business, we stay focused on what your customers want and how technology evolves.

Core Components of CRO

Our core conversion rate optimization centers on strategic elements like landing page design, systematic A/B testing protocols, and user experience improvements that work together to maximize conversion potential.

Our strategy requires meticulous attention to call-to-action placement and messaging, supported by tools like Optimizely and Microsoft Clarity for thorough testing and user behavior analysis.

Companies that master these fundamental components, such as Shopify (which increased conversions by 30% through landing page optimization) and HubSpot (known for its data-driven CTA testing), consistently demonstrate higher conversion rates and improved customer engagement metrics.

Free Detailed close-up of a hand-drawn wireframe design on paper for a UX project. Stock Photo

Landing Page Optimization

Want to optimize your landing page? We help you improve your web pages to get more visitors taking action and having a better experience.

We use tools like Microsoft Clarity to track and improve your pages. Our experience shows that good landing pages balance attractive design with usability. When your ads match your landing page message, you’ll see better results . Believe us on that - we’ve seen mismatched messaging cut conversion rates by half

We continuously test and refine your pages using heat maps and visitor recordings to see exactly how people interact with them.

ELEMENT BEST PRACTICE IMPACT
Call to Action Clear, prominent buttons Higher click-through rates
Page Layout Clean, focused design Reduced bounce rates
Content Flow Logical progression Increased engagement

A/B Testing - - Conversion Rate Optimization

We improve your website’s conversion rates by comparing two different versions to see which one works better for your goals. This is called A/B testing.

We create two versions of your webpage or app - version A (the original) and version B (the new version). We then show these versions randomly to different visitors and measure how they interact with each one. This helps us understand which design choices lead to more sales, sign-ups, or whatever action you want visitors to take.

Our testing process is straightforward: We start by looking at your current performance, set clear goals, create new designs to test, and carefully analyze the results.

For example, when we work on your online store, we might test different button positions or messages to see what gets more people to buy.

We rely on solid data and statistics to make sure our findings are accurate and avoid common mistakes like showing different versions to search engines and setting up incorrect redirects.

User Experience Improvements

Efficient site navigation and ideal page load speed form key components of successful conversion rate optimization, with studies showing that 53% of mobile users abandon sites taking longer than three seconds to load.

Site Navigation

The main purpose of site navigation is to help you quickly find what you're looking for on a website &  Fast!

We recommend keeping it simple and clear to help more visitors take the actions you want them to take. Our research shows that a website works best with a clean menu at the top and helpful links at the bottom.

We’ve found that using seven or fewer main menu items makes it easier for you to navigate and complete your goals on any website.

Page Load Speed

Page load speed directly impacts how well your website performs. We know that most people leave websites taking more than three seconds to load. Let me explain why this matters for you.

The faster your website loads, the more likely you are to keep visitors engaged and make sales.

Key speed elements affecting your website:

  • Load Time: We can help achieve this using content delivery networks (CDN).
  • Image Quality: When we optimize your product images properly, visitors view 60% more pages on your site.
  • LCP optimization: We keep your Largest Contentful Paint (LCP) under 2.5 seconds through caching and code optimization.

Call-to-Action Optimization

We know CTAs are vital for turning visitors into customers on your website. To make them work better, we focus on a few key things that make people click.

  1. We recommend using colors that stand out from your page design to grab attention. We place CTAs where your eyes naturally look, and we use words that make you want to act now, like “Limited Time” or “Get Started Today.”
  2. When we design your page, we keep plenty of space around the CTA so it’s easy to spot. For longer pages, we add CTAs throughout your content so you never have to search for ways to take action.
  3. We constantly test different versions of CTAs - changing words, colors, and positions until we find what gets the most clicks.
  4. We’ve found that matching your CTA message to your page content can double your results. When we use trust-building words and make the benefits clear to you, more people click through and take action.

Strategies for Effective CRO

With a combination of precise data analysis and strategic personalization, we create a powerful framework for optimizing conversion rates, allowing you to make informed decisions while delivering customized experiences that resonate with your target audience.

Free A close-up of a hand with a pen analyzing data on colorful bar and line charts on paper. Stock Photo

Data-Driven Decision Making

With data-driven decisions we mean using real facts and numbers to make better business choices.

We use data to transform your business guesswork into clear, actionable insights. When we track how people use your website, we can see exactly what works and what doesn’t.

We combine different already mentioned tools to get the full picture of your customers’ behavior. When we notice people leaving your website quickly, we test different versions to find what keeps them engaged.

Our ongoing process of watching, learning, and adjusting helps create an experience that truly connects with your audience. This way, we help you build stronger relationships with your customers and grow your business steadily

Personalization Techniques

We know the best ways to make your online experience feel more personal and tailored to your needs. When we create customized experiences for you, you’re likely to spend more time engaging with our content - in fact, 81% of customers do.

We track how you shop and what you buy to make your experience better. We show you products you’ll actually want to see and offers you’ll want to use. When you visit our website, we remember what you’ve looked at before and suggest similar items you might like.

We can even send you emails about things that match your interests. We work hard to make everything happen in real time, showing you helpful customer reviews and letting you know when something you might like is on sale.

Challenges and Considerations

While implementing CRO strategies, organizations often struggle with common pitfalls like making assumptions without data, rushing A/B tests without sufficient traffic, and neglecting mobile optimization.

Finding the right balance between aggressive conversion tactics and maintaining a positive user experience remains an important challenge, as overly pushy sales techniques can drive visitors away..

Common Pitfalls in CRO

The biggest problem is poor mobile optimization. Your customers mostly browse on phones now, so a website that doesn’t work well on mobile will lose sales. We find that complicated checkout processes and unclear buttons often frustrate people enough to abandon their purchases.

We’ve also seen many websites stuff their product descriptions with keywords, trying to rank better in search results. This makes the text hard to read and drives customers away.

We also notice many businesses don’t track their conversions properly, so they can’t tell if their changes are working or not.

As stated multiple times above, your website should make it easy for customers to understand what you offer and complete their purchase without frustration.

Balancing User Experience and Conversion Goals

We balance user experience and conversion goals by  focusing on what works for both you and your visitors. We need to make it easy for people to take action while keeping their experience smooth and frustration-free.

Form fields and buttons must work effectively without being pushy. You don’t want to fill out endless fields right?  That’s why we test different approaches to find what converts best while keeping you happy.

ELEMENT UX FOCUS CONVERSION FOCUS
Forms Minimal fields Lead capture/landing
CTAs Natural placement High visibility
Navigation Intuitive flow Sales funnel

When placing action buttons, we consider both visibility and user comfort. Our experience shows that when you’re satisfied with the experience, you’re more likely to complete a purchase or sign up.

We use data to guide our decisions, but we never forget the human side. Each change we make considers both immediate results and long-term satisfaction. This creates steady growth and keeps you coming back.

Why choose Conversion Design?

Best Value for Your Investment

At Conversion Design, we focus on maximizing your returns from existing traffic. This means you get more value from your investment, making your marketing efforts work harder and smarter. Our strategies have consistently shown significant improvements in conversion rates. For instance, we’ve seen landing pages improve from 10% to 15% in conversion rates through our data-driven approaches.

We believe in sustainable and long-term growth. Even small improvements in conversion rates can add up to substantial gains over time.

Modern Tools

We use state-of-the-art tools like Google Analytics, Microsoft Clarity, and Optimizely to track user behavior and gather comprehensive data. These tools help us understand exactly how visitors interact with your website and to find what to improve. We conduct A/B testing, heat mapping, and visitor recordings. Every change we make is backed by solid data, leading to meaningful improvements.

We also use various AI-tools and continue monitoring the ever-evolving AI space, making sure that we stay in touch with all the major modern developments.

Adapting to Your Needs

Every business is unique, and our approach is tailored to your specific needs. Whether you’re an e-commerce business looking to reduce cart abandonment or a service-based company aiming to generate more leads, we adapt our strategies to meet your objectives. We believe in the ongoing process of testing, learning, and improving. We ensure that your website remains optimized and effective.

By choosing Conversion Design, you’re investing in a partner that combines cost-effectiveness, modern tools, and adaptable strategies to deliver the best results and a superior customer experience.