What is CVR?
CVR is a term familiar to marketers, advertisers, and professional marketers. As for those who are new to Marketing, this is a new term and quite surprising. So this article will help you understand what is the definition of CVR. The importance of CVR and (4) effective ways to increase CVR for Marketers.
1. What is CVR?
The term CVR has the full name of the Conversion Rate, and CVR means conversion rate. CVR mentioned when businesses and marketers run advertising campaigns for brands or products, the inclusion of CVR is to measure the effectiveness of the campaigns. Thereby letting businesses know the number of users their ads have converted.
There is a general formula for calculating CVR in advertising as follows:
CVR = (number of users who took an action/number of users who clicked on the ad) x 100
It can be understood simply that if 2000 people are clicking on an ad for a product, of which 200 people take the action to buy that product. Then according to the formula will calculate CVR = ( 200/2000 ) x100 = 10
CVR – that ad’s conversion rate is 10%
Note: to be recognized as a conversion, the buyer must complete the product purchase action. If the transaction fails, it will not be counted as the advertised product CVR.
Read more: What is GDN Advertising? The ways to optimize GDN ads for Marketers
2. What is the importance of the CVR?
What is the importance of the CVR index? The question will be answered shortly.
The CVR index in digital marketing ranges from 0 to 100. If the CVR =100 it means that the ad was successful, reaching a 100% conversion rate, and everyone who clicks on the ad completes the purchase.
On the contrary, if the CVR index = 0, the brand has failed with the advertising campaign, and the conversion rate is now 0%. The CVR index is proportional to the success and revenue that the campaign brings.
When understanding the conversion rate of an advertising campaign, it will understand the number of users who complete the transaction, which is a premise to improve and promote the goals set by the business. Understanding what CVR is will help businesses weigh the limitations as well as advantages of the campaign, help propose solutions and be the foundation for developing campaigns to achieve high results later.
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3. The ways to increase CVR for Marketers
After learning about the definition of CVR, you must have understood how the CVR metric works and its importance. So how to effectively increase the CVR conversion rate? Here are (4) basic ways to increase CVR that Marketers need to know.
3.1 Clear Call-to-Action
Call to Action – a call to action to buy. On sales websites, and advertising pages, you must have come across a lot of buttons with the title “Click to download”, “Order here”, and “Watch now” this is the call to call user action purchase/interaction. It urges users to act immediately and quickly to get the product, help increase the CVR index, and bring profit for the Marketing advertising campaign.
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3.2 Practice good button design
Besides using words to call to action, it is necessary to impress and attract users with the shape of the buttons. That is the Call to Action button.
Scientific research on human psychology has proven that objects with sharp edges often bring a sense of danger, making viewers warier than objects with soft rounded corners. That is why construction signs and traffic warning signs are usually triangular.
Besides, people will pay more attention to the content inside the rounded edges, so good button designers often design a rounded or rectangular Call to Action button with a shadow to highlight the 3D effect, attracting the attention of users helps to increase the success rate of CVR.
3.3 A/B test testing
A/B testing is also known as multivariate testing directly put an advertising campaign has many different test versions, and using A/B testing will help marketers find the version that brings the most benefits and earns the highest CVR conversion rate.
3.4 Design eye-catching product images
Eye-catching images and colors are important factors in attracting users and leaving a deep impression. Besides, the image factor also contributes to deciding whether the product advertising campaign is effective or not. There are many ways to design eye-catching product images that attract users’ attention, and here are some basic ways to improve the image design to increase CVR conversion rates that businesses don’t need to spend a lot of money.
- Allows users to manipulate zoom in, zoom out, and move images to help increase interaction with users and stimulate users to buy.
- Use high-resolution images with eye-catching colors.
- Create white spaces around product photos to help buyers pay more attention to the advertised product.
- Combine multiple product shots from different angles.
4. Conclusion
The article has raised the basic concepts of CVR, helps you understand what is CVR? along with the importance of the CVR index in measuring the success of an advertising campaign, and (4) ways to increase CVR for Marketers to bring the best results when implementing an advertising campaign for a brand or product.
