CVR might be a term you have heard of online, but you might be unsure about what exactly it means, and just how important it is in the world of online marketing.
So what exactly is CVR, and what uses does it have in the marketing world?
What Is CVR?
Within marketing, CVR stands for ‘conversion rate’ (or ‘conversion ratio’), and refers to one of the main ways marketing executives can make sense of the public interest in their advertisements, companies, or in the products they are attempting to sell.
Ultimately, the purpose of CVR in marketing is to fully develop, improve, and reinforce the marketing endeavors to the point where they result in the optimum level of sales, clicks, consumer traffic, or any other desired results that the business entity might have.
What Is A ‘Conversion’?
Within CVR, a ‘conversion’ is the end goal of any sale - when a targeted customer responds to an advertisement or campaign, visits the website in question, and purchases the service or product that is being advertised.
Consumer interest - or traffic through websites - is referred to as an ‘impression’, and it is the transferral of impressions into conversions that signals business success in the marketing world.
The equation used by marketing companies looks like this:
(total conversions/total impressions) x 100
This essentially divides the number of conversions against the number of impressions, and then multiplies them by 100 to find the overall usable figure.
Why Is It Important To Marketing?
Ultimately, marketing specialists are concerned with generating as much wealth as humanly possible, and they will use any weapons in their arsenal to do so.
The more wealth generated for their clients, the more their own profits will soar - and as such, ensuring the whole process is streamlined and effective is priority number one.
How Can CVR Be Improved?
Luckily for marketing companies, there are several ways that CVR can be improved - even for the most unprofitable campaigns.
Keep The Content Approachable
The first thing companies should do is keep the advertising content approachable and accessible from a customer perspective.
This means that language used should be accessible to people of all levels, and shouldn’t feature industry specific jargon that might otherwise confuse or disinterest members of the general public - people who most likely will not be aware of the specialized vocabulary of the business world.
Keeping things light and understandable is also a good way to make companies feel warm and approachable - as opposed to coming across as alienating, cold, or otherwise unfriendly to customers.
Calls To Action
These are very important from a marketing perspective, and appeal to the human brain due to their commanding presence, and sense of determination and motivation that they communicate.
These generally start with a commanding, imperative verb - such as ‘place your order’, or ‘ complete your application’. Phrases like this create a sense of urgency and necessity over the services you are advertising, and large percentages of people are more likely to respond to this kind of advertisement.
The overall tone generally needs to be dynamic too - that is, to create a sense of motivation and movement forward, like the product or service is incredibly important and key for future prosperity.
Good Button Design
It is also important to ensure that buttons and links are appealing, easy to click on, and effective to use. This comes down to basic psychology, which suggests that most humans are prone to avoiding hard to use websites, buttons, or things that don’t appear satisfactory or easy to use.
Certain button shapes too have also been proven to be less appealing to interact with - such as triangular shapes, or even ones with sharp, hard right angles.
The best course of action is to opt for softer shapes, as these seem less threatening, and subconsciously symbolize something good, as opposed to a potential sense of danger, negatively impacting sources of importance, and other less appealing states of being.
AB Tests
Also known as ‘split tests’ or ‘multivariate tests’, these are designed to essentially cause competition by placing two teams against one another in a ‘winner takes all’ scenario.
This generally focuses on two different sides of the same marketing campaign, and examples have been seen in products as simple as potato chips or candy - wherein different flavors of the same product are pitched against one another, catching consumer attention and creating a sense of attractive, healthy competition.
Of course, from a company point of view, whichever ‘side’ wins doesn’t matter, as all the profits go to the company and their marketing affiliates.
What Are Some Tactics To Avoid?
On the flip side, there are also some tactics to avoid when marketing specific products or services to customers.
Avoid Jargon
While some might consider business talk a transparent, honest approach with customers, most won’t be versed in such terms, and the approach could have the opposite effect - that is, alienating and boring the customers.
Don’t Be Elitist
One thing that must be avoided in marketing is a sense of elitism. While creating a sense of exclusivity is good for generating customer interest in a product - such as a sports car, or the new brand of perfume - this needs to be communicated in a way that is still accessible and seemingly attainable to the average consumer.
You are generating aspirations, not trying to dissuade potential customers.
Final Thoughts
And there we have it, everything you need to know about CVR, and what it means within the world of marketing.
It’s true that CVR plays an important role in the whole process, and is something that all marketing executives need to be aware of - both from a sense of gauging success, and keeping track of marketing interests.
So if you want to become more successful at online marketing, then why not learn more about CVR? You definitely won’t be disappointed!