What Is Conversion Rate Optimisation and How Does It Work?

Home / PPC News / What Is Conversion Rate Optimisation and How Does It Work?
Liam Blackledge
21 July 2023
Read Time: 12 Minutes
Article Summary

Conversion rate optimisation is the systematic process of increasing the percentage of visitors who complete a desired action. This guide covers the CRO process, testing methods, and the difference between micro and macro conversions.

Key Takeaways

Conversion rate optimisation (CRO) is the process of increasing the percentage of website visitors who take a desired action. That action might be making a purchase, filling in a contact form, signing up for a newsletter, or downloading a resource. Rather than simply driving more traffic, CRO focuses on getting more value from the visitors you already have.

It’s one of those disciplines that sounds technical but really comes down to understanding what your visitors want and removing friction between them and the action you’d like them to take. If you’ve been focused on getting people to your site through SEO or paid advertising but haven’t looked at what happens after they arrive, CRO is the missing piece. At Gorilla Marketing, we build conversion optimisation into the broader digital strategy we run for clients, because traffic without conversions is just a vanity metric.

How Do You Calculate Conversion Rate?

Conversion Rate Optimisation

The formula is straightforward:

Conversion rate = (Number of conversions / Total visitors) x 100

If your landing page gets 5,000 visitors in a month and 150 of them fill in your enquiry form, your conversion rate is 3%. Simple enough. But the number only becomes useful when you have context. A 3% conversion rate on a high-intent service page might be underperforming, while 1.5% on a cold-traffic blog post could be perfectly fine.

What counts as a “good” conversion rate varies by industry, traffic source, and what you’re actually asking visitors to do. Benchmarks exist, but they’re averages across wildly different sites. Your own historical data is a better baseline than someone else’s numbers.

The important thing is to measure consistently. Pick a clear conversion event, track it properly through your analytics and tracking setup, and measure changes over time. Without that foundation, you’re guessing.

Why Does CRO Matter?

The simplest argument for CRO is economic. Acquiring traffic costs money, whether through SEO, paid ads, content marketing, or any other channel. If you can convert a higher percentage of that existing traffic, you reduce your effective cost per acquisition without spending more on reaching new visitors.

But there’s a compounding effect that makes it even more worthwhile. Improvements to conversion rate don’t just produce a one-off bump. They keep working for every visitor who comes through that page from that point forward. A landing page that converts at 4% instead of 2.5% doesn’t just help this month; it helps every month until something changes.

CRO also forces you to understand your users better. The research involved (which we’ll get to shortly) often uncovers usability problems, confusing messaging, or broken user journeys that affect more than just conversion rates. Fixing those issues improves the overall user experience, which has knock-on benefits for engagement, brand perception, and even search performance.

There’s a practical ceiling to how much traffic you can drive to a site. At some point, growth has to come from doing more with what you’ve got. That’s where CRO earns its keep.

Micro-Conversions vs Macro-Conversions

Conversion Rate Optimisation

Not every conversion carries the same weight, and understanding the difference between micro-conversions and macro-conversions helps you measure the full picture.

Macro-conversions are the primary goals of your site. The actions directly tied to revenue or business outcomes. Completing a purchase. Submitting a lead form. Signing up for a paid subscription. These are what most people think of when they hear “conversion.”

Micro-conversions are smaller actions that indicate progress toward a macro-conversion. Adding a product to a basket. Watching a product video. Clicking through from a category page to a product page. Signing up for a newsletter. They don’t generate revenue directly, but they signal engagement and intent.

Tracking micro-conversions matters because they give you visibility into where people drop off before reaching the main goal. If plenty of visitors add items to their basket but few complete checkout, you know exactly where to focus. If nobody’s even clicking through to your product pages, the problem is further up the funnel.

A good CRO strategy tracks both. Macro-conversions tell you whether you’re winning. Micro-conversions tell you why or why not.

The CRO Process: How It Actually Works

CRO isn’t a one-off project. It’s a repeating cycle. The companies that get the best results treat it as an ongoing process rather than something you do once and move on from.

Here’s what that cycle looks like in practice:

1. Research

Everything starts with understanding what’s happening on your site right now and why. This breaks into two types of research: quantitative and qualitative.

Quantitative research gives you the numbers. Where are visitors landing? Where do they drop off? Which pages have the highest exit rates? What does the conversion funnel actually look like in your analytics? Tools like Google Analytics 4 give you the data to identify problem areas. If you’re not sure where to start with GA4, our guide to GA4 SEO reports covers the fundamentals of extracting useful insights from your data.

Qualitative research tells you why the numbers look the way they do. This is where you get into user feedback, surveys, usability testing, and behavioural tools like heatmaps and session recordings.

Heatmaps show you where visitors click, scroll, and hover on a page. They’re brilliant for spotting patterns you wouldn’t catch from analytics alone, like a call to action that everyone ignores because it sits below the fold, or a non-clickable element that visitors keep trying to click. Session recordings let you watch individual user journeys, which often reveals confusion points and friction that aggregate data masks.

On-site surveys and customer feedback add another layer. Sometimes the most valuable insight comes from simply asking visitors what they were looking for and whether they found it. Post-purchase surveys, exit-intent polls, and support ticket analysis can all feed into your CRO research.

Neither type of research works well alone. The numbers tell you what’s happening. The qualitative data tells you why. You need both.

2. Hypothesise

Once you’ve identified problems, you form hypotheses about how to fix them. A good CRO hypothesis follows a basic structure: “If we change [X], then [Y] will happen, because [Z].”

For example: “If we move the enquiry form above the fold on the service page, form submissions will increase, because heatmap data shows most visitors don’t scroll past the pricing table.”

The “because” part matters. Without it, you’re just making changes and hoping for the best. The reasoning behind the hypothesis is what lets you learn from the result, regardless of whether the test wins or loses.

Prioritise hypotheses based on three factors: potential impact (how much could this move the needle?), confidence in the evidence (how strong is the data supporting this change?), and ease of implementation (can we test this in a day or does it need a developer for two weeks?). Not every idea is worth testing. Start with the ones that combine strong evidence with meaningful potential upside, and keep a backlog of the rest. Some frameworks call this an ICE score (Impact, Confidence, Ease), which is a useful shorthand for ranking ideas when you have more hypotheses than testing capacity.

3. Test

This is where A/B testing comes in. An A/B test (sometimes called a split test) shows different versions of a page to different visitors and measures which version performs better against your chosen metric.

Half your visitors see the original page (the control). The other half see the variant with your proposed change. After enough traffic has passed through to reach statistical significance, you can see which version actually converted better, with confidence that the difference isn’t just random noise.

A/B testing removes opinion from the equation and replaces it with a data-driven answer. Instead of debating whether a green button outperforms a red one, you test it and let the data decide. We cover testing methodology in more detail in our A/B testing guide, but the core principle is simple: change one thing, measure the outcome, and make sure you have enough data before drawing conclusions.

There are more advanced testing methods too. Multivariate testing changes multiple elements simultaneously. Split URL testing sends visitors to entirely different page designs. But for most businesses starting out, standard A/B testing is the right place to begin.

4. Analyse

Once a test reaches significance, analyse the results. Did the variant outperform the control? By how much? Was the improvement statistically significant, or could it be down to chance?

But don’t stop at the headline number. Look at how different segments responded. Maybe the change improved conversions for mobile visitors but hurt desktop performance. Maybe it worked well for returning visitors but confused first-timers. Segment analysis often reveals insights that the overall result hides.

If a test loses, that’s still valuable. You’ve learned something about your visitors’ behaviour. Document why the hypothesis was wrong and what the result suggests about user preferences. Failed tests inform better hypotheses next time.

5. Iterate

Winning changes get implemented permanently. Losing changes get documented and inform the next round of hypotheses. Then you start the cycle again.

This is where most businesses fall short. They run one or two tests, see modest results, and move on. But CRO programmes that run consistently over six to twelve months tend to produce cumulative gains that dwarf any single test result. Each round of testing teaches you more about your visitors, which makes your next set of hypotheses sharper, which leads to better tests. The learning compounds as much as the results do.

Where Should You Focus Your CRO Efforts?

You can optimise almost any page on your site, but some areas tend to offer the highest return on effort.

Landing Pages

Landing pages are often the first thing visitors see, especially from paid campaigns or organic search. If the page doesn’t immediately communicate relevance and value, visitors leave. Common problems include unclear headlines, a disconnect between the ad copy and the landing page messaging, slow load times, and too many competing calls to action.

The best landing pages have a single, clear purpose. One offer. One call to action. Minimal distractions. Every element on the page should support the conversion goal.

Calls to Action

Your call to action (CTA) is where the conversion actually happens, so small improvements here can have outsized effects. The text, colour, size, placement, and surrounding context all influence whether visitors click.

Vague CTAs like “Submit” or “Click Here” tend to underperform more specific ones like “Get Your Free Quote” or “Start Your Trial.” The CTA should tell visitors exactly what happens when they click, and ideally reinforce the value they’ll receive.

Placement matters too. A CTA buried at the bottom of a long page won’t get as many clicks as one positioned where visitors naturally make a decision. That doesn’t mean plastering buttons everywhere. It means understanding the user journey and placing the CTA at the right moment.

Forms

Forms are a common conversion killer. Every additional field you add creates friction. Long, complex forms with unnecessary fields put people off, especially on mobile. The fix is usually straightforward: ask only for what you genuinely need at this stage, and save the rest for later in the relationship.

Form optimisation also includes the details that seem small but add up. Clear field labels, inline validation, progress indicators on multi-step forms, and sensible default values all reduce friction. Autofill support matters more than most businesses realise.

Checkout Process

For e-commerce sites, checkout optimisation is often the highest-impact area. Cart abandonment rates are notoriously high, and the reasons are usually fixable: unexpected shipping costs, forced account creation, too many steps, limited payment options, or a lack of trust signals at the point of purchase.

Guest checkout, transparent pricing, multiple payment methods, and security badges all contribute to a smoother experience. Even something as simple as showing a clear order summary before the final click can reduce drop-off.

Social Proof and Trust Signals

People look for reassurance before they commit. Reviews, testimonials, case studies, client logos, certifications, and security badges all serve this purpose. They reduce the perceived risk of taking action.

Where you place social proof matters. A testimonial sitting on a page nobody visits isn’t doing much. But a relevant review next to a pricing table or a trust badge beside a payment form can move the needle significantly. Context is everything.

How CRO Relates to SEO

CRO and SEO aren’t competing priorities. They’re complementary. SEO brings the right visitors to your site. CRO makes sure those visitors do something useful when they get there.

There’s a deeper connection too. Many of the improvements you make through CRO, like faster load times, clearer page structure, better mobile experience, and more engaging content, also improve signals that search engines care about. A page that keeps visitors engaged and drives them toward a goal is also a page that tends to perform well in search. For more on how user experience feeds into search performance, take a look at our piece on UX and SEO.

The relationship works the other way as well. SEO research tells you what visitors expect when they arrive on a page. If someone searches “best project management software for small teams” and lands on a generic software category page, the conversion rate will suffer because the page doesn’t match their intent. Aligning landing page content with search intent is both an SEO task and a CRO task.

The ideal setup is one where both disciplines feed into each other. SEO data informs CRO priorities. CRO improvements benefit search performance. Running them as separate silos means missing opportunities on both sides. A UX audit often sits at the intersection, identifying issues that affect both conversions and organic performance simultaneously.

Common CRO Mistakes

Testing Without Enough Traffic

A/B testing only works when you have enough visitors to reach statistical significance. If your page gets 200 visitors a month, a test might take months to produce a reliable result, and even then, it could be misleading. This ties into a broader question of when a site is actually ready for structured CRO testing.

If your traffic is too low for proper A/B tests, that doesn’t mean you can’t improve conversions. It just means you should focus on best-practice improvements, qualitative research, and user testing rather than relying on split tests. Fix the obvious problems first. Testing comes when you have the volume to support it.

Low bounce rates and strong engagement are signs that your traffic is qualified enough to make testing worthwhile.

Copying Competitors Without Context

Just because a competitor uses a particular layout, CTA, or form design doesn’t mean it works for their audience, let alone yours. Copying without understanding why something works leads to changes that don’t improve anything, or actively make things worse.

Use competitor sites as inspiration, not templates. Their audience, brand positioning, traffic sources, and product offering are different from yours. What works for a SaaS company with primarily organic traffic won’t necessarily work for a local service business running paid campaigns.

Optimising the Wrong Things

It’s tempting to start with visual tweaks: button colours, headline fonts, hero images. These can make a difference, but they’re rarely the biggest lever. If your value proposition is unclear, your pricing isn’t competitive, or your page takes six seconds to load, a new button colour isn’t going to save you.

Start with the structural issues. Get the fundamentals right first. Then test the details.

Ignoring Mobile

More than half of web traffic in the UK comes from mobile devices. If your CRO efforts focus exclusively on the desktop experience, you’re optimising for the minority of your visitors. Mobile users have different constraints: smaller screens, touch navigation, slower connections, and less patience for complexity.

Test changes on mobile separately. What looks great on a desktop monitor might be unusable on a phone. Forms that feel quick on desktop can be painful on a small screen. Always check.

Running Too Many Tests Simultaneously

If you’re testing changes on overlapping pages or running multiple tests that affect the same user journey, the results contaminate each other. You can’t tell which change caused which effect. Keep tests isolated so you can trust the results.

Stopping After One Test

A single test, whether it wins or loses, is just the beginning. CRO is iterative. One winning test doesn’t mean you’ve optimised a page. It means you’ve found one improvement. There are probably more.

The businesses that get the most from CRO commit to the process long-term. They build a testing culture where every change is an opportunity to learn something about their visitors.

Getting Started With CRO

If you haven’t done any structured conversion optimisation before, you don’t need to build a complex testing programme from day one. Start with the basics.

Set up proper conversion tracking so you know your baseline numbers. Look at your analytics to identify the pages with the most traffic and the worst conversion rates, because those are your highest-impact opportunities. Run some qualitative research: watch session recordings, check heatmaps, and read customer feedback. Fix the obvious friction points.

Once you’ve worked through the low-hanging improvements, you’ll have a much clearer picture of where formal testing makes sense. That’s when a structured hypothesis-test-analyse cycle starts paying off.

CRO is fundamentally about building a better experience for your visitors while getting better results for your business. The two aren’t in tension. When you remove friction, clarify your message, and make it easier for people to take action, everybody wins.

If you’re looking to build conversion optimisation into your broader marketing strategy, our team at Gorilla Marketing can help. We run CRO alongside SEO and paid media, so improvements aren’t siloed but part of an integrated approach. Get in touch if you’d like to talk through where to start.

Liam Blackledge
Liam has been in the SEO industry since 2019, cutting his teeth as an SEO Executive before levelling up by joining Gorilla at Manager level in 2023. Specialising in technical SEO, site architecture and content strategy, Liam manages a portfolio of clients across multiple sectors and takes a hands-on approach to every campaign he runs. When he’s not buried in Search Console, he’s either hard at work at the snooker table, or telling anyone who’ll listen that he’s going to start back at the gym.

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