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MichaelMaggs (talk | contribs) Adding local short description: "Concept in digital marketing", overriding Wikidata description "process of optimizing the percentage of website visitors making a purchase, filling out a form or a different defined action" |
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In 2004, new tools enabled internet marketers to experiment with [[Web design|website design]] and content variations to determine which layouts, copy text, offers, and images perform best. Testing started to be more accessible and known. This form of optimization accelerated in 2007 with the introduction of the free tool [[Google Website Optimizer]].<ref name="auto">{{Cite book|last=Page|first=Rich|url=|title=Website Optimization: An Hour a Day|date=2012|publisher=[[Wiley (publisher)|Wiley]]|isbn=9781118196519|language=English|oclc=940552907}}</ref> Today, optimization and conversion are key aspects of many [[digital marketing]] campaigns. A research study conducted among internet marketers in 2017, for example, showed that 50% of respondents thought that CRO was "crucial to their overall digital marketing strategy".<ref>{{cite web|last=Davis|first=Ben|date=October 11, 2017|title=Research shows fewer marketers see CRO as 'crucial' in 2017, but is the discipline misunderstood?|url=https://econsultancy.com/research-shows-fewer-marketers-see-cro-as-crucial-in-2017-but-is-the-discipline-misunderstood/|url-status=live|access-date=May 7, 2021|website=[[Econsultancy]]|publisher=[[Centaur Media]]|archive-date=July 28, 2020|archive-url=https://web.archive.org/web/20200728153240/https://econsultancy.com/research-shows-fewer-marketers-see-cro-as-crucial-in-2017-but-is-the-discipline-misunderstood/}}</ref>
Conversion rate optimization shares many principles with [[Direct marketing#Direct response marketing|direct response marketing]] – a marketing approach that emphasizes tracking, testing, and on-going improvement. [[Direct marketing]] was popularized in the early twentieth century and supported by the formation of industry groups such as the Direct Marketing Association, which was formed in 1917 and later named the [[Data & Marketing Association]] and acquired by the [[Association of National Advertisers]] following the announcement on May 31, 2018.<ref>{{cite press release|author=<!--Not stated-->|title=ANA to Acquire DMA|url=https://www.ana.net/content/show/id/49074|___location=[[New York City]]|publisher=[[Association of National Advertisers]]|agency=|date=May 31, 2018|access-date=May 7, 2021|archive-date=January 28, 2021|archive-url=https://web.archive.org/web/20210128125937/https://www.ana.net/content/show/id/49074|url-status=live}}</ref>
Like modern day conversion rate optimization, direct response marketers also practice A/B split-testing, response tracking, and audience testing to optimize mail, radio, and print campaigns.<ref>{{Cite book|last1=Caples|first1=John|url=https://books.google.com/books?id=0cBfQgAACAAJ|title=Tested Advertising Methods|last2=Hahn|first2=Fred E.|date=1997|publisher=[[Prentice Hall]]|isbn=9780132446099|editor-last=Hahn|editor-first=Fred E.|edition=5th, revised|___location=[[New Jersey]]|oclc=924986866}}</ref>
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Conversion rate optimization seeks to increase the percentage of website visitors that take a specific action (often submitting a web form, making a purchase, signing up for a trial, etc.) by methodically testing alternate versions of a page or process{{citation needed|date=February 2016}}, and through removing impediments to user experience and improving page loading speeds. In doing so, businesses are able to generate more leads or sales without investing more money on website traffic, hence increasing their marketing return on investment and overall profitability.<ref>{{cite book|last1=Goward|first1=Chris|url=https://books.google.com/books?id=2N1DwBhcMTkC|title=You Should Test That: Conversion Optimization for More Leads, Sales and Profit or The Art and Science of Optimized Marketing|date=2013|publisher=[[Wiley (publisher)|Wiley]]|isbn=9781118301302|___location=[[Hoboken, New Jersey]]|lccn=2012951871|oclc=1159801038}}</ref>
[[Statistical significance]] helps us understand that the result of a test is not achieved merely based on
There are several approaches to conversion optimization with two main schools of thought prevailing in the last few years. One school is more focused on testing to discover the best way to increase website, campaign, or [[landing page]] conversion rates. The other school is focused on the pretesting stage of the optimization process.<ref>{{Cite book|last=McFarland|first=Colin|url=https://books.google.com/books?id=Z9B-7cHB5UwC|title=Experiment!: Website conversion rate optimization with A/B and multivariate testing|date=August 17, 2012|publisher=[[New Riders (publisher)|New Riders]]|isbn=9780133040081|___location=[[Berkeley, California]]|oclc=817741617|access-date=September 13, 2020|archive-date=May 7, 2021|archive-url=https://web.archive.org/web/20210507114802/https://books.google.com/books?id=Z9B-7cHB5UwC|url-status=live}}</ref> In this second approach, the optimization company will invest a considerable amount of time in understanding the audience and then creating a targeted message that appeals to that particular audience. Only then would it be willing to deploy testing mechanisms to increase conversion rates.
== Calculation of conversion rate ==
A conversion rate is defined as the percentage of visitors who complete a goal, as set by the site owner. It is calculated as the total number of conversions, divided by the total number of people who visited your website.
:<math>\mathrm{Conversion\ rate} = \frac{\mathrm{Conversions}}{\mathrm{Number\ of\ visitors}}</math>
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