Conversion Rate Optimization is an ubiquitous term used for a process whose end objective is improving the goal conversion rate (whatever the goal might be) of a activity by changing elements of the activity that influence the user behaviour or engagement.
For example, if your goal is to increase the open rate of your email campaigns, you would need to experiment with various subject lines to find out which are producing the highest open rate, so you can use the suitable subject line
Conversion rate optimization can be used for various marketing activities such as Email marketing, PPC campaigns, SEO etc.
Why Conversion Rate Optimization?
The bottomline of any business operating on internet, is to generate a sale or a lead that turns into a sale in one way or the other.
The object of Conversion rate optimization is to optimize the parameters which would bring positive outcomes for the business as a whole.
Platform requirements for Conversion Rate Optimization:
Whatever the activity you are doing, it typically works on a platform. Be it your email marketing or your PPC campaigns. The following are the steps that are involved:
1. Data collection and processing: The platform must process hundreds of variables and automatically discover which subsets have the greatest predictive power, including any multivariate relationship. A combination of pre- and post-screening methods is employed, dropping irrelevant or redundant data as appropriate. A flexible data warehouse environment accepts customer data as well as data aggregated by third parties. Data can be numeric or text-based, nominal or ordinal. Bad or missing values are handled gracefully. Data may be geographic, contextual, frequencial, demographic, behavioral, customer based, etc.
2. Hypothesis: After data collection, forming a hypothesis is the next step. This process forms the foundation of why changes are made. Hypotheses are made based on observation and deduction. It is important that each hypothetical situation be measurable. Without these no conclusions can be derived.
3. Optimization goals: the underline goal for a CRO undertaking need not be always business oriented, the goal can be related to elements that would eventually impact the business.
To learn more about conversion rate optimization check out our course in Digital Marketing.
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