Conversion Rate (CVR)
Conversion Rate (CVR) is the percentage of visitors to a website or landing page who complete a desired action, such as making a purchase, signing up for a newsletter, or filling out a contact form. It is calculated by dividing the number of conversions by the total number of visitors and multiplying by 100. A higher CR indicates effective marketing and user engagement strategies.
Use Case
A digital agency runs an online campaign for an e-commerce client launching a new product. Initially, the website's conversion rate is at 2%, with 1,000 visitors and 20 purchases during a month.
Goal: Increase the conversion rate from 2% to 4% over the next quarter.
Strategies Implemented:
- A/B Testing: The agency tests two different landing page designs to see which one resonates more with users. One version includes a streamlined product image and clear "Buy Now" buttons, while the other features detailed product descriptions and customer reviews.
- Targeted Email Campaigns: They segment the audience based on past purchase behavior and send personalized email campaigns highlighting the new product's unique features and special launch discounts.
- Retargeting Ads: They implement retargeting ads to reach users who visited the product page but did not complete the purchase, showcasing testimonials and limited-time offers.
- Analytics Review: Monthly reviews of analytics data help identify drop-off points in the user journey, allowing for further optimizations.
Outcome:
After three months of implementing these strategies, the agency analyzes the results. The total number of visitors has increased to 1,500, and the number of purchases has risen to 75. The new conversion rate calculates to 5% (75 conversions out of 1,500 visitors). This uplift significantly boosts the client's revenue and highlights the effectiveness of the agency’s targeted efforts to enhance the user experience and engagement.