[Blog] What is conversion rate optimization?
Deep Dives · 14 min read

What is conversion rate optimization? How to optimize your way to success

A comprehensive guide to conversion rate optimization, how important it is, and why it’s a valuable asset to your bottom line.

Table of Contents
  • What is conversion rate optimization?
  • How to calculate conversion rate
  • Primary elements of CRO
  • Benefits of CRO
  • Who should use CRO?
  • The CRO process
  • The importance of statistical significance
  • CRO testing methods
  • Common mistakes to avoid
  • Popular CRO and A/B testing tools
  • Data analysis tools
  • FAQs
  • Return to top

Key takeaways:

  • CRO is about turning more visitors into customers by improving key elements of your site or app—like CTAs, forms, page speed, and copy. 

  • The average conversion rate is 2–5%, but what's “good” depends on your industry, audience, and business model. 

  • User psychology drives conversions. Tactics like urgency, social proof, clarity, and cognitive ease are powerful triggers that reduce friction and boost trust.

  • Testing is the engine of CRO. Start with clear hypotheses, run one test at a time, and use A/B, multivariate, or split testing methods, depending on your goal.

  • Use behavioral data to find high-friction areas. Tools like Fullstory and Google Analytics help you pinpoint drop-offs, rage clicks, and form abandonment.

  • CRO is a cross-functional effort. Product, UX, engineering, and data teams all play a role in building better user experiences and improving conversions at scale.

What is conversion rate optimization?

Conversion rate optimization (CRO) is the process of improving a website or app to increase the percentage of visitors who take a desired action—like making a purchase, signing up, or filling out a form. These actions are called conversions.

Your conversion rate is the percentage of total visitors who complete one of these actions. It’s calculated using a simple formula:

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

How to calculate conversion rate

For example, if 100 people visit your site and 5 of them make a purchase, your conversion rate is 5%.

Effective CRO starts with understanding your users—what motivates them, what holds them back, and what encourages them to act. From there, strategies like A/B testing, content refinement, and UX improvements help remove friction and boost conversion rates.

What is the average conversion rate?

Conversion rates can vary widely depending on industry, audience, and offer. On average, most websites and landing pages see a conversion rate between 2% and 5%.

What counts as a “good” rate depends on your goals and who you’re targeting. For example, a niche B2B service might convert at 1% and still be profitable, while a “good” ecommerce conversion rate might be 5% or higher. 

Ultimately, a conversion rate is only meaningful if you understand why it is what it is, and how you can improve it by better serving your audience’s needs, expectations, and behaviors.

Why people convert (or don’t)

Conversion isn’t just about good design—it’s about how people think. Understanding the psychology behind user behavior can help you create more persuasive, high-converting experiences.

Here are a few psychological triggers that drive action:

  • Social proof: Testimonials, reviews, and user counts reduce hesitation

  • Urgency: Limited-time offers, or countdowns encourage quick decisions

  • Clarity: A clear, specific value prop builds confidence and reduces friction

  • Cognitive ease: Simple layouts, minimal distractions, and focused CTAs make it easier for users to decide

On the flip side, people hesitate to convert when they feel confused, overwhelmed, or unsure they can trust your brand. Every test you run should aim to remove doubt, simplify choices, and highlight value.

4 benefits of conversion rate optimization

Even if you’re getting decent traffic, CRO matters—because traffic without conversions doesn’t grow your business. Here’s what a strong CRO strategy delivers.

1. Better ROI: CRO helps you get more value from the traffic you already have. By increasing the percentage of visitors who convert, every dollar you spend on marketing works harder and goes further.

2. Improved user experience: CRO forces you to understand your users’ wants and needs. This leads to cleaner design, smoother navigation, and more intuitive interactions that keep people engaged and coming back.

3. Deeper customer insights: Through testing and analysis, CRO helps uncover what motivates your audience to take action and what stops them. These insights can inform not just your website but also your broader marketing and product strategy.

4. Higher revenue with less spend: More conversions without increasing ad spend equals more revenue and more efficiency. CRO focuses on optimizing what you already have rather than throwing more money at traffic.

What are the primary elements of conversion rate optimization?

CRO focuses on refining key areas of your website to increase the chances that visitors take action. Core elements to consider optimizing include: 

1. Calls to action (CTAs): Your CTAs should be clear, persuasive, and easy to find. Use action-oriented language, keep them short, and place them strategically—like on product pages or forms.

2. Landing pages: Landing pages are often a visitor’s first impression of your brand. Make them visually clean, easy to navigate, and laser-focused on a single goal. Minimize distractions and highlight your value proposition. 

3. Copy: Strong copy builds trust and drives action. Keep headlines punchy and informative. Use concise, benefits-focused language. Break up text for readability and maintain consistent formatting.

4. Navigation and site structure: Your site should be easy for users to navigate—it should take no more than a few clicks for a visitor to reach the key pages of your site. Additionally, make sure your site is mobile-friendly and optimized for all devices.

5. Mobile app optimization: Optimizing your mobile app is crucial for improving conversion rates, as many users prefer to interact with brands through dedicated apps.

6. Forms:  If your forms are difficult to fill out or otherwise frustrating, your website visitors will abandon your forms. Ask visitors only for essential information and design forms that are clean, simple, and visually appealing.

7. Page speed: Some studies show that a load time of even one second can reduce your conversion rate by 7%. To ensure your site loads quickly, eliminate unnecessary graphics and host your website on servers with plenty of resources so they can handle high traffic.

Pro tip: Always maintain a user friction dashboard to easily identify where on your site or app users might be frustrated. You can do this easily in Fullstory.

User friction dashboard in Fullstory

Conversion optimization best practices 

CRO isn’t about copying what worked for someone else—it’s about understanding your users and optimizing based on their behavior. These conversion optimization best practices will help guide your strategy, but always validate them with real data.

1. Let data drive every decision

Data-driven decisions are the best kind of decisions, but not all data is created equal. Behavioral data will help you understand the why behind the clicks on your site. Instead of guessing what to fix, you’ll have concrete evidence of what’s working—and what isn’t. Always pair quantitative data (like bounce rate) with qualitative insights (like on-page behavior).

2. Test one change at a time

If you change too many things at once, you won’t know what actually improved (or hurt) conversions. Use A/B or multivariate testing to isolate variables—like button color, headline wording, or form length. Even small tweaks can have a big impact, but only if you measure them accurately. 

3. Simplify the user journey

Make it easy for users to take the next step. Remove unnecessary distractions from user journeys, reduce form fields, and clarify your CTAs. Every extra click or confusing option adds friction. The goal is to guide users—not overwhelm them—with a clear, focused path.

4. Validate “best practices” with your own audience

Just because a tactic worked for another brand doesn’t mean it’ll work for yours. Industry benchmarks can offer direction, but the only way to know what works is by testing with your actual audience. What resonates with a B2B software buyer may fall flat for an ecommerce shopper. Let your users be the final judge.

Who benefits from conversion rate optimization? Use cases by team

CRO isn’t just a marketing initiative—it’s a cross-functional effort that can drive better decision-making, performance, and results across multiple teams. Here’s how different teams can use experimentation and behavioral data to create real impact.

Product teams

CRO helps product teams validate feature changes, test onboarding flows, and improve user engagement. Instead of building based on assumptions, teams can experiment with different UX flows, copy, or UI elements to see what actually drives activation or retention. Behavioral insights from tools like session replays or heatmaps can also flag where users are confused or dropping off. 

Web & UX teams

For web teams, CRO is about removing friction and making the user journey as smooth as possible. Testing variations of layouts, navigation, forms, or page structure can reveal what helps users move through the site more efficiently. UX designers can use real user data—not opinions—to inform design decisions and prioritize improvements that directly influence conversions.

Engineering teams

While engineering teams aren’t usually the ones designing tests, they play a key role in enabling experimentation at scale. CRO tools need clean data, event tracking, and sometimes backend support for A/B testing infrastructure. Engineers also benefit from CRO when it uncovers bugs or performance issues (like slow load times) that impact conversion and user satisfaction.

Data & analytics teams

CRO gives data teams a continuous stream of measurable experiments to analyze. Rather than only reporting on what happened, they can help determine why it happened. With a solid CRO framework in place, data teams can identify trends, segment behavior, and inform business decisions with statistically significant results.

Conversion rate optimization steps: Understanding the process

Good news: even though conversion optimization is a competence of process, you can start practicing it effectively by understanding the different phases of the customer journey.

Hypothesis testing process for conversion rate optimization

Step 1: Identify areas for improvement

Before optimizing anything, understand where users drop off and why. Use a mix of quantitative data (derived from heatmaps, scroll maps, etc.) and qualitative data (send out surveys or watch session replays to see how your users are interacting with your site or app). 

Once you’ve gathered and analyzed your data, remember to calculate a quantifiable “expected conversion rate.” This should be higher than your current conversion rate, naturally. It’s helpful since it gives you a target to work toward as you further your CRO efforts.

Step 2: Construct a hypothesis

Next, build a data-based hypothesis about why visitors behave the way they do. Remember to always test a hypothesis before implementing corrections for it. The last thing you want to do is implement CRO efforts based on a hypothesis that isn't relevant to your target audience members. 

Step 3: Decide how to change your pages

Next, you need to change your web pages for better conversion rates overall. You can do this in two different ways:

  • Change one page massively and see what happens

  • Change two pages slightly and see which of the two pages does better (this is called an A/B test)

Both methods of page changes can work and give you valuable data. Choose the method that best suits your brand and conversion rate goals.

Step 4: Choose what you’ll test

Next, decide which website or app elements you’ll test. We recommend using the P.I.E. framework:

  • Prioritize the elements of your website you believe will have the most immediate, positive impact on your conversion rate

  • Ideate ways to improve those elements

  • Execute those improvements immediately

By following this prioritization cycle, you’ll implement good conversion rate improvements consistently and quickly without getting bogged down in ideation.

Step 5: Decide how you’ll test

Finally, you’ll need to test your website changes to see if your conversion rate improves. There are several different tests you can use to achieve this: 

  • A/B testing: Compare two versions of a page or element

  • Multivariate testing: Test multiple changes at once to see which combination works best

  • Split testing: Test radically different pages (on different URLs)

Step 6: Analyze & apply insights

Once you’ve got your results, dig into the “why.” Did users behave differently as expected? What can you apply across other areas of the site? Use what you learn to inform the next test—CRO is a cycle, not a one-and-done fix.

How to identify CRO opportunities in your conversion funnel

Before you can optimize, you need to know what needs fixing. That means going beyond intuition and using data to spot high-friction areas and low-performing pages.

Start with your conversion funnel analysis. Where are users dropping off most often? Tools like Fullstory or Google Analytics can help you visualize each step and pinpoint where visitors abandon their journey.

Funnel analysis insights in Fullstory

Look for these key signals:

  • High-exit or bounce rates on key pages (like product, pricing, or checkout)

  • Rage clicks or repeated interactions with non-functional elements

  • Scroll depth drop-off before reaching CTAs

  • Form abandonment before submission

  • Dead clicks on items users expect to be clickable

Prioritize fixing pages that get high traffic but low conversions—these offer the biggest opportunity for quick wins.

CRO test ideas you can try today

Not sure where to start with testing? Here are some tried-and-true CRO test ideas organized by page type. Use them as inspiration—but remember to validate everything with your own data.

Homepage

  • Add a more prominent CTA above the fold

  • Replace vague hero headlines with clear value propositions

  • Test adding social proof (e.g., customer logos, reviews, or user stats)

Product Pages

  • Try shorter vs. more detailed descriptions

  • Add trust signals near the "Add to Cart" button (like security badges or guarantees)

  • Swap static images with product videos or interactive demos

Pricing Pages

  • Highlight the most popular or best-value plan

  • Use toggle options (monthly vs. annual) to simplify comparison

  • Rework confusing pricing copy into simple, benefit-driven bullets

Forms

  • Remove non-essential fields to reduce friction

  • Break long forms into multi-step flows

  • Add reassurance near form fields (e.g., “We never spam.”)

Each of these tests focuses on reducing friction, improving clarity, or boosting trust—all critical to driving more conversions.

What CRO testing method should you use? 

A/B, split, and multivariate testing are all effective ways to experiment and validate changes—but each works best for different types of CRO goals.

A/B testing is best for simple experiments, like changing a headline, button text, or layout. It’s the most common and easiest to run, especially for testing one variable at a time.

Split testing is ideal when you’re testing completely different page designs or layouts that live on separate URLs. It’s useful for more drastic changes that might involve backend updates or structural changes to the page.

Multivariate testing is helpful when you want to test several elements (like headlines, images, and CTAs) at once to see which combination performs best. It requires more traffic and is best for fine-tuning rather than big overhauls.

Conversion rate optimization tools

You can’t optimize what you don’t measure—and that’s where CRO tools come in. Whether you're running A/B tests, analyzing user behavior, or identifying drop-off points in your funnel, the right tools help you make smarter, faster, and more effective decisions.

Here are some widely used CRO platforms:

  1. Optimizely: Optimizely is a versatile testing and analytics tool that can easily whip up full reports of test results. It also provides tools to see interactions, sign-up clicks, and other metrics from visitors interacting with your site.

  2. VWO: VWO is another high-quality A/B testing and experimentation platform that can help you optimize your conversion rate through its high-quality tool suite.

  3. AB Tasty: As its name suggests, AB Tasty is an effective and AI-powered experimentation tool that focuses on A/B tests. It allows you to optimize and personalize your products and website for better performance and conversion rate.

Tools to collect data to help you design tests

In addition to CRO tools, there are product analytics tools you can use to collect quantitative and qualitative data, both of which you’ll need to design and carry out tests and act upon their results. 

Google Analytics

Google Analytics is a free toolkit for small business owners who want to better understand qualitative and quantitative data gathered by their web tests.

Adobe Analytics

Adobe Analytics is another paid tool suite that lets you measure and analyze elements like clicks, purchases, sign-ups, and more.

Heap.io

Heap.io provides a data analysis and management platform for users who want to capture and fully understand user behaviors. It also includes security and privacy tools, as well as data governance solutions.

Fullstory

Fullstory gives you the full story of your customers’ data and test results. Its robust tool suite provides complete data capture, custom dashboards, session insights, and product analytics tools so you can fully understand how to maximize your conversion rate.

Standard funnel analysis in the Fullstory app allows you to look at users in a given timeframe, funnel conversion rate, and median time to convert.

Identify your biggest problems and solve them with Fullstory

Start gathering insights immediately from comprehensive, indexed, and searchable data. Then, optimize to improve your user experience and boost revenue. Fullstory makes it easy.

Request an easy, free demo today.

Frequently asked questions about conversion rate optimization

What is conversion rate optimization in SEO?

How do you calculate conversion rate optimization?

What is an optimization specialist?

Should I optimize for conversions or traffic?

What is statistical significance in CRO?