Measuring CRO Test Results
Conversion rate optimization (CRO) is an essential part of operating a successful online business. CRO efforts help to improve the percentage of website visitors who complete a desired action like making a purchase, signing up for a newsletter, or filling out a form that provides businesses with additional customer data. CRO can involve everything from analyzing user behavior to identifying obstacles to conversion, and experimenting with different approaches to overcome certain hurdles and improve conversion rates.
In the hyper-competitive landscape of online markets, CRO has become an integral part of business, especially for organizations attempting to maximize their revenue streams and profitability. By optimizing conversion rates, businesses can broaden their customer base, reduce customer acquisition expenses, and improve the overall effectiveness of various marketing campaigns.
In this article, we will provide a basic guide to measuring CRO test results and understanding the psychology of ideal customers. CRO practitioners must continually strive to find effective ways to improve testing methodologies and glean deeper insights into customer behavior.
Defining Key Performance Indicators
Key performance indicators (KPIs) are the metrics utilized to evaluate the success of a particular business strategy or activity. Within the context of CRO, KPIs are necessary in order to measure the effectiveness of tests designed to enhance website conversion rates. By identifying the most important KPIs, businesses can make better data-driven decisions about which tests to implement and which tests may be discarded.
There are numerous types of KPIs that are relevant in CRO tests – conversion rate, bounce rate, click-through rate, time on page, revenue per visitor, etc. Determining which KPIs are most important requires businesses to identify specific goals they wish to achieve as a result of their CRO testing. For example, if the primary goal is to increase revenue, KPIs like average order value and revenue per visitor may be more important than metrics like click-through rate. Alternatively, if the goal is to improve user engagement, metrics like time on page and bounce rate may be more pertinent.
Primary KPI: Conversion Rate
As previously alluded to, conversion rate represents the percentage of website visitors who complete a specific desired action. These actions may include (but are not limited to) form registrations, purchases, clicks on an ad, clicks on a button, and watching a video. In CRO testing, the conversion rate is an invaluable metric utilized to measure the relative effectiveness of different testing variations aimed at improving conversions.
When conducting CRO tests, the conversion rate is oftentimes the primary KPI used to determine the “winner” of a test. The test variation with the highest conversion rate is generally considered the winner, and the variation is implemented on the website. By utilizing conversion rates in this manner, businesses can make enhanced data-driven decisions about which testing variations are most effective in improving website conversion rates.
Secondary KPI: Uncovering Psychographics
Psychographics is a term that relates to the study of consumers’ personality types – their values, attitudes, interests, and lifestyles. In the context of CRO, psychographics are invaluable for understanding certain preferences and behaviors of website visitors, and businesses can effectively leverage psychographic data to optimize user experiences.
In CRO testing, evaluating psychographics must be an ongoing part of the process. Psychographic assessments may be able to provide information about the impact of various design elements like color, typography, images, and messaging. And by testing these elements in conjunction with other KPIs, businesses can cultivate a deeper understanding of what resonates with their target audience and what doesn’t.
To effectively interpret the results of uncovering psychographics, businesses must identify patterns in the data and understand which psychographic characteristics are most strongly associated with the desired behavior(s). This information can then be utilized to inform future CRO testing initiatives by tailoring website content and design to better align with the audience’s psychographic profile.
Using A/B Testing to Measure CRO Test Results
A/B testing – which is also sometimes referred to as “split testing” – is a method of comparing two different variations of a website or landing page to determine which version performs better in terms of achieving the desired outcome.
In order to set up and run an A/B test, businesses must identify a specific element or variation to test, such as a unique headline, button or font colors, images, etc. Then the business creates two different versions of the page – one with the variation changed and one without the change. Website visitors are then randomly directed to one of the two versions, and data is collected on how each variation performs.
To measure the results of an A/B test, businesses have to determine which primary and secondary KPIs are most relevant to their specific objectives. Once all the data has been collected, organizations can analyze the results to determine which variation performed better in terms of the primary and secondary KPIs.
Best Practices for Measuring CRO Test Results
Businesses must exercise the utmost care and consideration when selecting and measuring primary (and secondary) KPIs in CRO testing. To select primary and secondary KPIs, a business organization must first determine specific goals – like whether they want to focus on increasing website traffic or improving conversion rates, for instance. By selecting KPIs that align with those goals, businesses can make much better decisions throughout the CRO testing process.
In order to ensure accurate test results, statistical significance should be utilized to determine if the results of the test are a result of chance or if they represent a true difference between the variations being tested. In most cases, a confidence level of 95 percent or higher is required in order to be considered statistically significant.
Measuring CRO test results is a crucial component of optimizing online businesses. By carefully selecting and measuring primary and secondary KPIs, business organizations can gain valuable insights into the psychographics of their target audiences and make better decisions to improve overall website performance.
Using statistical significance to ensure accurate results is key, and CRO practitioners must ensure that test results are as accurate as possible in order to make effectual changes to the website. By doing so, businesses can discover new ways to improve customer engagement, increase conversion rates, and improve profitability.