CRO - Conversion Rate Optimization

What is CRO?

CRO is the abbreviation for Convert Rate Optimization. CRO is a working process with the application of practices and techniques that help your company optimize and improve the performance of your digital product.

Conversion

Conversion is the action that your company wants the consumer to do with your product, which can be a website, e-commerce, application, landing page, platform or system.

Some examples of conversion are:

E-commerce: purchasing the product or service
Landing page: contact request or budget
News portal: increased content engagement
Delivery application: restaurant, market or pharmacy order.

Conversion rate

The conversion rate is the percentage of consumers of your product who performed the action desired by the company. For example: an e-commerce site has 10,000 daily visitors and a total of 600 purchases per day. In this case the conversion rate is 6%.

Daily Visitors: 10,000/day
Daily purchases: 600/day
Conversion rate: 6%.

Phases of the CRO cycle

It is important to note that a CRO project does not have a determined end date, because improvements can always be applied.

The duration of each cycle depends on the project and can last from 1 to 2 weeks.

Interview and alignment with stakeholders:
It is important to include all employees from the areas involved with the project. Listening to the areas related to customer contact (SAC, Ombudsman, Call Center) is also a good practice;
Immersion:
In this stage, we must study all available data: Analytics, Heatmap, NPS, SAC. After analyzing the data, we must define the hypotheses to be studied;
Prioritization:
After defining the hypotheses, it is time to prioritize the hypotheses that will be studied in the current project cycle;
Experimentation:
In this stage, the prioritized hypotheses are applied and there is a follow-up of the results;
Implementation:
After the experimentation period is over, the hypotheses applied that performed well are kept and a new project cycle begins.

Techniques

The number of techniques applied usually varies according to the context of the client and the project.

Web Analytics: study of access data from the company’s site or application. In this study, we can understand the most important metrics for the company and what their performance is over time;
Heatmaps (Heat maps): the application of heat maps on a site can reveal which items are most clicked on by users and to what height of the page the user navigates;
A/B Tests: we compare two versions of the same page and measure the interaction of users with both versions. The page with the best performance is considered the winner;
Multivariate Testing: uses the same mechanism as A/B Testing, but compares a larger number of variables and reveals more information about how these variables influence each other;
Cohort Analysis: a cohort is a group of people who share a common cause and a common goal. Cohort analysis studies the behavior of specific user groups or customers over different time periods.
Statistical significance: when we run a test, we need to understand if the result obtained really has the potential to affect the revenue of your business. This calculation is important because the version you tested may have performed better (or worse) by pure chance;
Usability Evaluation: this type of technique is applied by UX professionals who study the pages of the site and identify points of improvement that can help increase the performance of the pages;
User Research: in this type of technique, users of the product are interviewed through techniques such as Focus Group, Usability Test and Interview with users (by phone or in person).

Benefits

Higher ROI (Return on Investment) rate
Lower CAC (Customer Acquisition Cost)
Better use of marketing channels
Lower development costs
Better understanding of the project
How to improve the performance of your digital product
Collect and analyze all data
Always listen to your customer in the most diverse channels
Stay focused
Make the product with the clearest information possible
Always focus on improvements

How to improve the performance of your digital product

We should follow some tips to improve the performance of digital products:

Always collect and analyze all data;
Listen to your customer on multiple channels;
Keep all information accessible and transparent;
Always focus on improvements.

Clients

Check out the opinion of our partners

The process with Tuia was very important and constructive. Tuia brought its expertise, listened to us, and we built the tests together, meeting all our needs. It is a job that I am very proud of.