The Ultimate Guide to Conversion Optimization for Small Businesses

Conversion Rate Optimization:
How to Turn Prospects into Visitors
and Visitors into Customers

If you already have website traffic, I bet conversion rate  optimization — that is, turning more of your website visitors into customers — is high up on your list of priorities.

This guide will walk you through pretty much everything you  need to know about conversion rate optimization — from why it is important to how you can go about building your own testing and optimization strategy.

You’ll find information that will help you improve the performance of your website, as well as the tools you’ll need to be successful.

BONUS: Want a tool that will improve your conversion rates? Check out Sumo!

Understanding Conversion Rate Optimization (CRO)

A conversion is any specific action taken by your prospects, anywhere throughout your sales process, on your website or outside of it.

For example, for an e-commerce store, one of the most important actions (if not the most important one) would be the purchase of a product.

But, depending on the type of business you’re running and your business model, there could be many different actions happening:

● Purchasing a product.
● Signing up for a newsletter.
● Registering for a free trial.
● Downloading an ebook.
● Clicking on an advertisement.
● Etc

You can also go one step further and break each major action into smaller micro-steps.

Thus, for example, the main action of purchasing a product could be broken down into the following steps:

1. Clicking on a Facebook or AdWords ad.
2. Visiting the product page.
3. Adding the product to the cart.
4. Filling out the order form.
5. Checking out / making the payment.
6. Receiving the product.
7. Returning the product for a refund.
8. Coming back to purchase more/other products.

What is a conversion rate?

A conversion rate is the percentage of people who complete a specific action or a micro-step.

By measuring conversion rates, you can find out if your efforts are effective.

You can also compare different efforts to decide which one performs better.

The higher the conversion rate, the better the performance.

What is a good conversion rate?

Conversion rates vary from action to action, business to business and industry to industry.

Therefore, to answer the question of what constitutes a good conversion rate, is not that simple (and, often, can be misleading).

Luckily, there exist reliable data sources, which will allow us to set at least some benchmarks.

One such source is a study performed by WordStream where they analyzed thousands of AdWords accounts with a combined annual spend of $3 billion.

The results were short of amazing.

The first conclusion is that there is a huge gap between the worst and the best performers.

The median click-through rate (CTR) for all accounts in the study was 2.35%.

The worst-performing quarter averaged conversion rates of less than 1%.

The best-performing quarter averaged 5.31% or more.

Most surprisingly, however, the best 10% achieved conversion rates of 11.45% and above.

And this data isn’t for individual landing pages. These advertisers are averaging 11.45%+ conversion rates across their entire accounts!


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