Conversion optimization (CRO): the definition, applications and best-known tools

Conversion optimization (CRO) - Toolshero

Article by: Kai Heinink

Last update: November 26, 2024

Conversion Rate Optimization (CRO), or Conversion Rate Optimization, is a strategy that helps convert more visitors to your Web site into customers or leads. This can be done, for example, by ensuring that more people make a purchase, fill out a form or sign up for a newsletter. CRO focuses on improving the visitor’s experience, making it easier for them to take the desired action.

What is Conversion optimization (CRO)? The basics

CRO is not just about improving buttons or forms on your Web site, but about optimizing the entire customer journey. This means looking at everything that affects the visitor’s experience, such as navigation, personalizing content based on user behavior and landing page design. Every component that can influence a visitor’s decision is important within CRO.

Simple Conversion optimization example
A good example is a landing page with an average conversion rate of 10% and 5000 visitors per month. Without optimization, this page yields 500 conversions per month. By applying CRO and increasing the conversion rate to 15%, the number of conversions increases by 50%, representing 750 conversions per month. Relatively small improvements in CRO can make a very big difference in sales.

The big advantage of CRO is that you get more out of your existing visitors. It is often easier and cheaper to convince current visitors than to get new visitors. So through CRO, you can improve the results of your website without incurring additional costs on ads. This makes it an efficient way to increase revenue from your Web site.

A successful CRO strategy starts with understanding your target audience well. You need to know who your visitors are, where they come from, what they need and where they might get stuck on your website. With these insights, you can make improvements that meet their needs and enhance their experience.

CRO is a continuous process of testing, learning and optimizing so that you are always working to improve your experience and increase conversion rates.

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The history of Conversion Optimization (CRO)

Conversion optimization emerged after the Internet bubble in the early 2000s. After this bubble burst, technology companies became more conscious of their spending and invested more in website analytics to improve the performance of their websites. With the increasing accessibility of creating Web sites, many sites were created that were not user-friendly. As competition on the Web increased and more analytics tools became available, awareness of the importance of a good user experience grew.

In 2004, new tools became available that allowed marketers to test which variations in Web site design and content worked best. In 2007, CRO became even more popular with the introduction of Google Website Optimizer. Today, CRO is an integral part of many online marketing strategies as companies face increasing competitive pressures and changing user behavior.

Five key techniques within Conversion Optimization

There are five techniques that are commonly used to increase the effectiveness of CRO. Below, we discuss these techniques and how they help improve conversions.

1. A/B testing

A/B testing is a method in which two versions of a web page or element are compared to see which performs better. This can be done, for example, by showing two different versions of a call-to-action button to visitors. By measuring which version generates more clicks, you can determine which version works best. An example of this is a Web shop that tests two versions of the text on the buy button: “Buy Now” versus “Order Direct.” If the test shows that “Order Directly” generates more conversions, you know it’s wise to implement this version.

2. Multivariate testing

Multivariate testing is similar to A/B testing, but instead of testing just two variants, multiple elements are tested simultaneously. This helps to understand which combination of changes produces the best results. For example, a landing page with different variations of the header, image and call-to-action button can be optimized through multivariate testing to find the best combination that is most successful in converting visitors.

3. Heatmaps

Heatmaps are visual representations of where visitors click, scroll or move their mouse on a Web page. This provides insight into how users interact with the page and which elements attract their attention. For example, a business may notice through a heatmap that many visitors click on an image that is not clickable. This indicates that visitors are expecting something to happen, and making the image clickable can improve the user experience.

4. User studies and surveys

User studies and surveys are valuable tools to get direct feedback from visitors. This helps to better understand pain points and what visitors expect from the website. An example is an e-commerce website that conducts a survey asking visitors why they abandoned their shopping cart. The results showed that high shipping costs were a major obstacle, after which the company decided to offer free shipping for orders over a certain amount.

5. Funnel Analysis

Funnel analysis is a technique that maps the path visitors take to complete a conversion. This allows you to see at what point visitors drop out and where optimization is needed. For example, an online subscription service notices that many visitors drop out during the payment page. By simplifying the payment options, they see a significant increase in the number of completed payments.

Successful real-world examples of CRO

To better understand how CRO strategies are applied in practice and the results that can be achieved, here are some concrete examples of companies that have significantly improved their performance through CRO.

1. The optical industry and social proof

One of the most well-known studies in the field of CRO comes from the optical industry. A study conducted by researchers at Tilburg University looked at the effect of social proof on the conversion rate of an optics website. Using customer reviews and ratings on the product pages increased the conversion rate by more than 20%. This study shows how important trust and social proof can be for making purchase decisions.

2. The travel industry and data-driven optimization

Another example comes from the travel industry. Booking.com is known for its data-driven approach to CRO. By continuously running A/B tests on elements such as buttons, scarcity messaging (e.g., “only 2 rooms left available”) and personalized recommendations, Booking.com was able to significantly improve conversion rates. An analysis by the Harvard Business Review showed that this approach not only led to higher booking numbers, but also improved customer satisfaction.

3. Free shipping in e-commerce

A study published in the Journal of Marketing Research found that offering free shipping had a significant impact on e-commerce Web sites’ conversion rates. The study found that removing financial barriers, such as shipping costs, increased the likelihood that visitors actually completed their purchases.

4. SaaS sector and onboarding optimization

Finally, here is an interesting example from the SaaS sector. A software company decided to optimize the onboarding process of new users by adding a step-by-step guide and offering proactive support via live chat. According to a case study by McKinsey & Company, this improvement led to a 15% increase in new user activation rates, which directly impacted the company’s retention rates and revenue growth.

The best CRO tools for effective and smart conversion optimization

CRO tools are software programs that help companies analyze visitor behavior and conduct experiments to optimize their Web sites. These tools provide insights into how visitors interact with different elements of a website and help companies decide which changes will have the most impact on conversion. From measuring where visitors click, to testing different versions of a Web page: CRO tools play an incredibly important role in improving the user experience and increasing the likelihood that visitors will take action.

CRO tools are very useful because they help you make decisions based on data. Instead of guessing what works and what doesn’t on your website, these tools give you valuable insights into your visitors’ behavior. This allows you to make targeted improvements and increase conversion rates. Moreover, they allow you to test different strategies and design variations, so you know exactly which approach works best for your target audience.

There are several tools available that can help businesses implement an effective CRO strategy. Below we discuss some of the best-known CRO tools, such as Hotjar and Crazy Egg.

1. Hotjar

Hotjar is a popular tool for gaining insight into website visitor behavior. It offers features such as heatmaps, session recordings, and feedback forms. This tool is especially suitable for users without technical knowledge, such as small to medium-sized businesses looking to get started with CRO. Hotjar helps businesses understand where visitors get stuck and which parts of the website can be improved.

Through visual representations of visitor behavior, such as click and scroll behavior, businesses can quickly identify areas for improvement and make adjustments that improve the user experience. Its ease of use and intuitive interface make Hotjar an excellent choice for beginners who want to get started with CRO without extensive technical knowledge.

2. Optimizely

Optimizely is an advanced CRO tool primarily used by larger companies and experienced marketers. This tool offers extensive capabilities for A/B testing, multivariate testing and personalization campaigns, allowing companies to test different aspects of their website to determine what works best.

Making the most of Optimizely does require some technical knowledge. The platform offers powerful features such as behavioral segmentation, which allows companies to show different versions of their website to specific audiences based on their behavior. This allows marketing teams to create personalized experiences. Optimizely is particularly suitable for large companies that want to create serious CRO campaigns and run extensive experiments to optimize user experience in an in-depth way.

3. Crazy Egg

Crazy Egg biedt visuele tools zoals heatmaps, scrollmaps en confetti-rapporten om inzicht te krijgen in hoe bezoekers zich door je website bewegen. Deze tool is ideaal voor kleine bedrijven en zelfstandigen die zonder veel technische kennis toch inzicht willen krijgen in het gedrag van hun bezoekers. Crazy Egg biedt ook mogelijkheden voor A/B-testen, zodat bedrijven kunnen testen welke varianten van hun webpagina’s de beste resultaten opleveren.

De eenvoudige interface en betaalbare prijs maken het een toegankelijke keuze voor iedereen die met CRO aan de slag wil. Een belangrijk voordeel van Crazy Egg is dat het bedrijven helpt om op een visueel aantrekkelijke manier te zien waar bezoekers afhaken of klikken, zodat ze snel verbeterpunten kunnen identificeren en aanpassen.

4. VWO (Visual Website Optimizer)

VWO is een uitgebreide CRO-tool die verschillende functies biedt, zoals A/B-testen, multivariate testen, heatmaps en gebruikersonderzoeken. VWO is geschikt voor bedrijven die CRO serieus willen aanpakken en meerdere optimalisatiemethoden willen combineren in één platform. De tool biedt gedetailleerde rapportages en analyses, waardoor bedrijven inzicht krijgen in het gedrag van hun bezoekers en gerichte verbeteringen kunnen doorvoeren.

Voor het gebruik van VWO is enige ervaring nodig, maar de uitgebreide functies bieden een grote meerwaarde voor middelgrote tot grote bedrijven die op zoek zijn naar een alles-in-één CRO-oplossing. Het platform helpt bij het nauwkeurig testen en optimaliseren van website-elementen om de conversieratio te verbeteren, en biedt tevens integraties met andere marketingtools, waardoor het een waardevolle toevoeging is aan de toolkit van ervaren marketeers.

5. AB Tasty

AB Tasty is een alles-in-één platform voor CRO, personalisatie en gebruikerservaring. Het biedt functies zoals A/B-testen, gepersonaliseerde aanbevelingen en gebruikersonderzoeken. AB Tasty is geschikt voor bedrijven van elke grootte die op zoek zijn naar een flexibele oplossing voor het optimaliseren van hun website. De tool is relatief eenvoudig in gebruik, maar biedt toch krachtige mogelijkheden voor geavanceerde optimalisaties.

Bedrijven kunnen hiermee snel experimenten opzetten en testen welke aanpassingen het meeste effect hebben op conversie. AB Tasty biedt daarnaast functies voor dynamische personalisatie, waarmee bedrijven de content op hun website kunnen aanpassen op basis van het gedrag en de voorkeuren van bezoekers. Dit maakt het een geschikte keuze voor bedrijven die meer willen doen dan alleen A/B-testen en op zoek zijn naar een tool die hen helpt gepersonaliseerde ervaringen te creëren voor hun bezoekers.

What does the future of Conversion Optimization (CRO) look like?

The future of CRO looks promising, especially as more and more companies recognize the importance of data-driven optimization to stay competitive. An important trend is that CRO is becoming increasingly integrated with other areas of online marketing, such as SEO.

CRO is expected to play a larger role within SEO strategies in the coming years. This is because search engines, such as Google, increasingly value user experience when ranking Web sites. Websites that are better optimized for conversion often also offer a better experience for the user, leading to higher positions in search results.

In addition, advanced technologies, such as artificial intelligence and machine learning, will play an even greater role in CRO. These technologies make it possible to analyze visitor behavior better and, more importantly, more easily and create personalized experiences.

Now It’s Your Turn

What do you think? What is your experience with Conversion Optimization (CRO)? Do you recognize the above or do you have any additions? What do you think are other success criteria or factors that can contribute to good conversion optimization?

Share your knowledge and experience via the comment box at the bottom of this article.

More information about conversion optimization / CRO

Universiteit van Tilburg (2017). Onderzoek naar sociale bewijskracht in de optiekbranche.
Thomke, S. (2020). Building a Culture of Experimentation – It takes more than good tools. It takes a complete change of attitude. March–April 2020, https://en.wikipedia.org/wiki/Harvard_Business_Review.
Silverstein, D., Samuel, P., & Decarlo, N. (2009). The Innovator’s ToolKit: 50 Techniques for Predictable and Sustainable Organic Growth. Wiley.
de Bono, E. (1999). Six Thinking Hats: An Essential Approach to Business Management. Back Bay Books.
McKinsey & Company (2015). Case study over onboarding optimalisatie in de SaaS-sector.

How to cite this article:
Heinink, K. (2024). Conversion Optimization (CRO). Retrieved [insert date] from Toolshero: https://www.toolshero.com/marketing/conversion-optimization/

Original publication date: 11/26/2024 | Last update: 11/26/2024

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Article by:

Kai Heinink

Kai is the founder of MarketingCollega, an SEO agency based in the Netherlands. He developed the unique SEO+ strategy, which combines Search Engine Optimization with basic CRO and online branding. With a special focus on e-commerce, they help businesses improve their online visibility, conversion rates, and brand awareness. According to Kai, the most important aspect of modern SEO is to optimize for the website visitor, not for Google.