What is conversion rate optimization?

Conversion Rate Optimization (CRO) is the process of improving or increasing the percentage of website visitors who take a desired action. The desired action may be:

  • Making a purchase.
  • Signing up for a newsletter.
  • Completing a form.
  • Downloading a brochure.
  • Requesting a quote or more information about a product or service.
  • Sharing content on social media platforms.
  • Engaging with online chat services.
  • Using an interactive tool or calculator on the site.
  • Referring a friend or using a referral code.

Analyzing user behavior, testing variations, and implementing changes are all done frequently to improve conversion rates.

According to Wikipedia:

“Conversion rate optimization seeks to increase the percentage of website visitors that take a specific action by methodically testing alternate versions of a page or process, and through removing impediments to user experience and improving page loading speeds.”

Key components

The following are the key components of CRO:

  • Data analysis

Using analytic tools to understand user behavior and identify areas for improvement.

  • A/B Testing

Comparing two versions (A and B) of a website or marketing campaign in order to determine which converts visitors more effectively.

  • User experience (UX) optimization

Improving the overall user experience, making it easier for visitors to enjoy the visuals of the website and then convert.

Enhancing the effectiveness of CTAs to encourage desired actions.

  • Landing page optimization

Making landing pages more likely to convert by optimizing them to meet or exceed user expectations.

Image of an A/B Test for Conversion Rate Optimization
Image created by Market Business News.

Process of CRO

Here are the processes in chronological order:

  • Research and analysis

Understanding user behavior by using data analysis and identifying areas for improvement.

  • Hypothesis creation

Creating hypotheses about modifications that might improve conversion rates.

  • A/B Testing

Using A/B testing to determine which version is better.

  • Implementation

Making changes based on the results of successful tests.

  • Continuous monitoring

Keeping track of performance and making additional adjustments as necessary.


CRO is very important for many reasons. Here are the main reasons:

  • Increased ROI

Higher conversion rates lead to a higher return on investment (ROI).

  • Enhanced user experience

CRO includes improvements to user experience, which positively impacts overall satisfaction.

  • Data-driven decision-making

CRO uses testing and data analysis to make sure choices are supported by facts rather than speculation.

  • Competitive Advantage

In the digital landscape, websites and campaigns that implement effective CRO have an advantage over competitors.


Here are the three main challenges that come with CRO:

  • Complexity

CRO encompasses a multitude of variables, making the identification of the most impactful changes a complex task.

  • Resource intensive

Constantly testing and optimizing requires time, effort, and in some cases financial investment.

  • Changing user behavior

User behavior and preferences evolve, they are not static. As a result, CRO strategies need constant refinement and adaptation to stay effective.


The following tools are instrumental in facilitating effective CRO:

  • Google analytics

This tool is essential for tracking and analyzing website traffic.

  • A/B testing tools

These are critical for testing different variations of webpages to determine which performs better. Popular options include Optimizely, VWO (Visual Website Optimizer), and Google Optimize.

  • Heatmap and session recording tools

Tools like Crazy Egg and Hotjar offer visual representations of how users interact with a website.

Video – What is Conversion Rate?

This video, from our sister channel on YouTube – Marketing Business Network, explains what the term ‘Conversion Rate’  means using simple and easy-to-understand language and examples.

Written by Nicolas Perez Diaz