CRO Terms Explained: Key Definitions Every Marketer Should Know

If you want to turn those precious clicks into conversions, just familiarizing yourself with the CRO definition won’t cut it. You need to get every element of your CRO strategy just right. But before you can optimize, you first need to understand what they mean and how they influence your results. We promise by the end of this CRO glossary, you'll be able to do just that.

1. Conversion Rate (CVR)

Your website might be getting a ton of visitors. But how many of those are actually taking action—signing up, making a purchase, or filling out a form? That's what CVR helps you understand. It measures the percentage of users who complete a desired action out of the total visitors.

Here's the formula:

Conversion Rate (%) = (Conversions / Total Visitors) × 100

Say you run an eCommerce store, and last month, 10,000 people visited your site. Out of those, 500 made a purchase. In this case, your CVR will be:

(500 / 10,000) × 100 = 5%

It goes without saying the higher the conversion rate, the better, as it shows your site is doing exactly what it should—engaging visitors and encouraging them to take action. But a low CVR? That's a red flag indicating issues with UX, messaging, or even page load speed.

2. A/B Test

Ever found yourself in a dilemma deciding between two versions of simple things like CTAs, headlines, or button colors? While these elements seem super basic, they can, in fact, have a huge impact on your conversion rate.

A/B testing lets you test two versions of the same element to see which one performs better. All you need to do is segment your audience into two random groups—Group A sees Version A, and Group B sees Version B. The version that gets more conversions wins.

For example, suppose you're running an email marketing campaign. Version A has a subject line that reads, 'Hurry! Your Exclusive 20% Discount Ends Soon' while Version B reads 'Last Chance! Grab 20% Off Before It's Gone.'

If Version A gets a 15% higher open rate, you now have data-backed proof that subject lines impact user behavior. But make sure to test just one element at a time to see what actually made a difference.

3. Multivariate Test

Think of multivariate testing as an extension of A/B testing. But instead of comparing just two versions, it lets you experiment with multiple elements at once—headlines, images, CTAs, button colors—you name it.

Imagine you're optimizing a landing page. You want to test:

• Two headlines ('Boost Your Sales' vs. 'Grow Revenue Faster')

• Two CTA buttons (Green vs. Orange)

• Two hero images (Product photo vs. Customer testimonial)

Now, instead of running separate A/B tests for each, a multivariate test automatically creates all possible combinations (2×2×2 = 8 variations) and shows them to different segments of visitors. This helps you identify which combination drives the most conversions.

But there's a catch. Multivariate tests need a good amount of traffic to get reliable results. If your site has low visitors, it's best to stick to A/B testing.

4. Split Testing

Split testing is often confused with A/B testing, but there's a slight difference. While A/B tests change one element at a time, split testing can compare entirely different versions of a webpage, email, or ad.

For example, suppose you're running a lead generation campaign and want to test two completely different landing pages:

• Version A: A minimalist page with a short form and a clear CTA.

• Version B: A more detailed page with testimonials, FAQs, and a long-form CTA.

Half of your visitors see Version A, while the other half see Version B. After running the test for some time, you can compare the conversion rates to see which page drives more leads.

5. Call to Action (CTA)

A clever, action-oriented CTA is a prompt that tells your visitors exactly what to do next. For example, 'Buy Now,' 'Sign Up,' or 'Get Started.'

But remember, just using any CTA won't cut it. It needs to be clear, compelling, and action-driven. Think about it. If you come across two CTAs: 'Learn More' and 'Register today to get flat 15% off on your first purchase,' which option are you more likely to click on?

The second one, right?

Why? Because it's specific, benefit-driven, and creates urgency.

Similarly, it's important to place your CTA strategically and use contrasting colors to ensure it grabs visitors' attention.

6. Experiment

An experiment is a test that helps you improve conversions by changing and analyzing different elements on a page. Whether you're running an A/B test or a multivariate test, the base of each experiment remains the same:

• Creating a hypothesis

• Executing the test

• Analyzing results

Let's break it down with an example:

Suppose you notice a high bounce rate on the pricing page. Instead of making assumptions, you create a hypothesis:

'If we add customer testimonials to the page, users will feel more confident and convert.'

To test this, you create Version A (current page) vs. Version B (with testimonials). Now, you run the experiment for a set period and analyze whether the change made any impact on the conversions.

7. Behavioral Targeting

Not all your visitors are the same. So why should your content be? Behavioral targeting lets you tailor ads, offers, and experiences based on a user's past actions and browsing history. So, instead of showing the same content to everyone, you can:

• Show different headlines based on user interests

• Send tailored offers based on past purchases

• Remind users about products they viewed but didn't buy

How does this help? By:

• Boosting engagement

• Increasing conversions

• Enhancing user experience

8. User Experience

User Experience (UX) is another important CRO term—in fact, we'll even go as far as saying it's one of the most critical aspects. It's all about the look and feel of your site and how easy it is for visitors to find what they need.

A solid UX needs:

• Fast site load time

• Intuitive navigation

• Mobile-friendliness

Even small tweaks like simplifying forms, improving page speed, and making CTAs more prominent can greatly influence user behavior, increasing the chances of conversion.

9. Bounce Rate

Bounce rate helps you calculate the percentage of visitors who land on your site but leave without taking any action. You can calculate it using the formula:

Bounce Rate = (Single-page visits / Total visits) x 100

For example, if 1,000 people visit your landing page, but 600 leave without clicking or exploring further, your bounce rate would be:

(600 / 1,000) x 100 = 60%

While it's best to aim for a low bounce rate, a high one isn't always bad. For example, if someone visits your blog, finds the answer they need, and leaves, that's not a failure. But if visitors abandon your landing page or product page without converting, it can be concerning.

10. Personalization

Personalization is a non-negotiable in your CRO strategy. It includes tailoring content, recommendations, and even experiences based on a user's behavior, preferences, and past interactions.

Why is this important? Because 61% of customers feel that most businesses treat them as just numbers. Now, that's not what you want your customers to feel, do you?

With Fibr AI's personalization agent, Liv, you can craft 1:1 personalized experiences for every visitor, ensuring you speak directly to their needs. It lets you:

• Ensure every visitor gets a tailored experience.

• Adjust different elements in real-time based on visitor behavior, intent, and preferences.

• Integrate it seamlessly with Google Ads, Meta Ads, and LinkedIn Ads to align landing pages with campaign intent and audience preferences.

11. Eye-Tracking

Eye-tracking helps you understand which element on your site grabs visitors' attention first. It's a research technique that analyzes where users look, how long they focus, and what they ignore on a webpage, email, or ad.

You can conduct an eye-tracking study with the help of:

• Specialized webcams

• Screen-based devices

• Eye-tracking glasses

This is an excellent way to guide users toward conversions. For example, if your CTA is hidden in a blind spot, chances are, your users won't see it—let alone click it. Eye-tracking insights can help you refine page designs for better engagement and higher conversions.

12. Statistical Significance

Suppose you run an A/B test on two landing pages. Page A gets a 12% conversion rate, while Page B gets 15%. Sure, Page B seems like a clear winner. But how do you know this wasn't just random luck?

Statistical significance helps you validate the results.

It measures if your test results are actually meaningful or just a fluke. For example, while Page B had better conversions, it might not have received enough traffic to make an informed judgment.

But if the statistical significance of Page B is, say, 95%, it means there's a 95% probability that the result is accurate and page B is indeed the winner.

13. Primary Conversion

There are many actions visitors can take on your site. But primary conversion is the ultimate goal, the most important action you want them to take. Depending on your business, this could be:

• Buying a product

• Signing up for a paid subscription

• Opting for a product demo

Understanding this CRO term is super important as it helps keep your optimization efforts focused and track relevant metrics. It also helps you prioritize experiments and make decisions that align with your primary conversion goals.

14. Secondary Conversion

Not every person who lands on your website will meet your primary conversion goal straight away. Secondary conversion is the next best action they can take in this case. Think of it as a small step towards primary conversion. Secondary conversion could include:

• Adding a product to the cart

• Downloading an eBook or whitepaper

• Signing up for a free trial

It helps nurture prospects through the sales funnel and keep them engaged. In fact, tracking secondary conversions can also help you understand where users drop off and what nudges them forward.

15. Unique Selling Proposition (USP)

Literally, every brand out there claims to be 'the best in the industry.' So, what makes you stand out? Your USP is the one ultimate thing that sets you apart from the competition—something that makes customers choose you over everyone else.

Remember, the goal isn't just to be different. You must be different in a way that matters to your audience.

For example, at Fibr AI, our USP is offering AI-powered end-to-end CRO solutions for businesses. But how does it benefit them? They can have their own AI CRO team to run 100x more experiments, work 10x faster than a traditional CRO team or agency, and do it all at 1/10th the cost.

16. Visitor Segment

We'll reiterate: not all your visitors are the same. They may have different pain points, preferences, and even browsing styles. And so, you need to treat them differently, too.

Visitor segmentation is the practice of grouping users based on shared preferences, behaviors, or intent. It helps you tailor your messaging and offers to better match their needs—boosting engagement and, of course, conversions.

You can segment visitors based on:

• Demography: Age, location, gender, device type

• Behavior: First-time visitors, cart abandoners, high-value spenders

• Traffic source: Organic search, paid ads, social media

• Psychographics: Interests, values, motivations

17. Type 1 Error

A Type 1 Error is a statistical CRO term that indicates a false positive. This typically happens when you incorrectly reject the null hypothesis, meaning you believe there's a significant difference when there really isn't one. In CRO, this means thinking a change improved conversions when, in reality, it didn't.

Let's understand Type 1 Error with an example. Say you're testing two CTA buttons:

• Version A: 'Get Started' (baseline)

• Version B: 'Claim Your Free Trial'

Your test shows that version B is performing better, so you switch to it. But later, you realize the spike in conversions was just a random variation, not a real improvement. That's a Type 1 Error.

18. Click-Through Rate (CTR)

You could craft the most attractive email, ad, or CTA. But how do you know if people are even clicking on this? That's exactly what a click-through rate helps you determine. It measures how effective your content is at getting users to take action. You can calculate CTR by using this formula:

CTR = (Total clicks / Total impressions) x 100

For example, if your email was opened by 10,000 people and 500 clicked the CTA, your CTR would be:

(500 / 10,000) × 100 = 5%

A low CTR is considered bad as it shows your audience isn't interested or your CTA isn't compelling enough.

19. Website Readability

Website readability means how easy it is for users to scan, understand, and engage with the content on your site. If they need to work too hard, they won't stick around. You can improve website visibility by:

• Using simple, conversational language

• Breaking up text using short paragraphs and bullet points

• Using clean, web-friendly fonts and images

Pro Tip: Use tools like Flesch-Kincaid Readability Score or Fibr AI's content personalization features to ensure your text is digestible.

20. Above and Below the Fold

The top half of your site that's visible immediately when someone lands on your site is called above the fold. This part that visitors see first—before scrolling—is prime real estate in CRO. Everything you have to scroll to see? Below the fold.

Here's how you can optimize them for maximum conversions:

• Above the fold:

- A clear, benefit-driven headline

- A compelling, action-oriented CTA

- Engaging visuals that support your message

• Below the fold:

- Detailed information, testimonials, and case studies

- Additional, strategically-placed CTAs

- FAQs and other details