Conversion Rate Optimization Software (CRO) Market Size (2023 – 2030)

The Conversion Rate Optimization Software (CRO) Market was valued at USD 1.45 billion and is projected to reach a market size of USD 3.56 billion by the end of 2030. Over the outlook period of 2023-2030, the market is anticipated to grow at a CAGR of 11.9%. 

In the past, converting people into potential customers included manual marketing, such as the use of hoarding boards, providing samples to existing customers, offering sales & discounts, and others. However, with a gradual increase in the usage of the internet, technological advancements in marketing led to the development of conversion rate optimization software that enabled various businesses to optimize their conversion rate and increase their online market presence. Moreover, digital marketing is a major contributor to the market for CRO software. Moreover, large companies with diverse marketing needs are using advanced CRO software that offers personalization in targeting customers, AI-based integration tools, behavioral analytics, reporting tools, and others that help them increase their conversion rate. Furthermore, trends in the start-up eco-system are further anticipated to boost the market opportunities for conversion rate optimization software in the market, as these start-ups require CRO software for entering into market competition, launching their products and services, and increasing consumer awareness regarding their products that would further help them maximize the conversion rate.

Key Market Insights:

As per Wordstream, a marketing company, 2.35% is the average website conversion rate

According to the HubSpot State of Marketing, report 2021, email conversion forms accounted for 15% of the conversion rate in 2020, depicting the most successful way of converting online viewers.

As per Unbounce Conversion Benchmark Report, the median conversion for landing pages as analyzed by them was 3.2%.

Furthermore, as per a blog published by Adoric, a customer management, and CRO optimization company in 2022, 77% of companies ran A/B tests on their websites, including landing pages that help them identify design, font, and other issues.

Conversion Rate Optimization Software (CRO) Market Drivers:

The growing e-commerce industry has boosted the demand for conversion rate optimization software (CRO) in the market.

Post-pandemic there is a continuous increase in the growth of e-commerce platforms, as many consumers shifted their preferences towards online shopping due to the convenience it provides. Moreover, increased market competition has induced e-commerce companies such as beauty and apparel, fitness, online groceries, and others to deploy CRO software that helps them differentiate from other companies and maximize conversion rates. Moreover, e-commerce platforms are increasingly using CRO software with data analytics and marketing integrations that enable them to automate the marketing process increasing their chances of acquiring more customers. These include automated email sending, feedback collection, landing pages with AI chatbot or other automated call-to-action buttons, and others. Furthermore, data analytics tools enable automated insightful reports that analyze customers’ behavior across various online channels by measuring their click-through rate, engagement with the webpage, bounce-back rate, ROI, and others that can further help e-commerce brands or companies optimize their platform and maximize conversion rate.

Growing trends in digital marketing have boosted the demand for conversion rate optimization software (CRO) in the market.

Digital marketing has enabled businesses to increase their online presence with minimal investment. Moreover, CRO software with advanced marketing tools enables businesses to manage marketing operations at a centralized platform, which includes sending emails, designing and publishing landing pages, performing A/B testing, performing search engine optimization to reach a targeted audience, and others. Moreover, the growth of digital marketing has increased the demand for lead generation tools by companies, wherein companies can capture potential customers online for their products and acquire their data by sending promotional emails and lead capture forms. This is further becoming one of the sources for maximizing conversion rate in the market. In addition, digital marketers can use CRO software to manage campaigns that help them track user engagement, and advertising performance by location, manage social media handles of the company, and others.

Conversion Rate Optimization Software (CRO) Market Restraints and Challenges:

Privacy concerns can decrease the demand for CRO software in the market. In the course of increasing leads and maximize customer base, companies track user’s online behavior, browsing patterns, and behavior toward the launch of products, services, sales, and other offers, for collecting customer data such as email, contact number, and others for sending them promotional emails. This can lead increase in cyber threats, as consumers’ data can be misused by hackers leading to privacy leaks, data breaches, ransomware, phishing attacks, and others.

Conversion Rate Optimization Software (CRO) Market Opportunities:

The Conversion Rate Optimization Software (CRO) Market is anticipated to deliver lucrative opportunities for businesses, which include acquisitions, partnerships, collaborations, product launches, and agreements during the forecasted period. Furthermore, the rapidly growing e-commerce industry along with growing trends in digital marketing is predicted to develop the market for conversion rate optimization software (CRO) and enhance its future growth opportunities.

CONVERSION RATE OPTIMIZATION SOFTWARE (CRO) MARKET REPORT COVERAGE:

Conversion Rate Optimization Software (CRO) Market Segmentation: By Deployment

• Cloud

• On-Premise

In 2022, based on market segmentation by deployment, the cloud occupied the highest share of about 31% in the market. Cloud-based CRO software offers greater scalability in terms of handling large volumes of data resources, which include company data, customer data, and others; increased accessibility as it allows users to access the software services from any device and enables remote collaboration with the team for efficient working. Moreover, it is cost-effective in nature, as it is often based on a one-time subscription model that reduces the company’s cost for regular maintenance and updates of the software.

On-premise is the fastest-growing segment during the forecast period. On-premise CRO software offers greater security to companies, as the data is stored on a local server and provides complete control over the data, which in turn helps to reduce the risks of cyber threats. Furthermore, on-premise CRO offers customization, as it enables organizations to tailor the software requirements to their requirements.

Conversion Rate Optimization Software (CRO) Market Segmentation: By Type

• Landing Page Builders

• Heat maps Software

• A/B Testing Software

• Others

In 2022, based on market segmentation by type, landing page builders occupied the highest share of about 28% in the market. CRO software designed for landing page builders is relevant for the creation, customization, and optimization of landing pages and is meant to capture the attention of potential customers while browsing the internet. Moreover, landing page CRO software offers a varied range of landing page templates with customization features to companies that enable them to design the page based on their brand image. In addition, the software offers other features as well such as drag-and-drop editors, form builders for customer feedback collection, automated analytics, and reporting that provide detailed insights regarding online customer behavior, and others. Furthermore, digital marketing agencies are the major users of landing page builder CRO software, as they use it for managing digital marketing campaigns that maximize the conversion rates for their clients.

A/B testing is the fastest-growing segment during the forecast period. A/B testing CRO software is relevant for comparing the content of two webpages or digital campaigns simultaneously for analyzing the performance and functioning of the webpage and thereby optimizing it for maximum conversions. Moreover, it enables companies to alter the design, digital content, user interface, and other aspects before launching the website or campaign, thus providing increased optimization to companies. Furthermore, modern-day A/B testing CRO software provides automated data collection of customer interaction with the webpage for further optimization. Additionally, after the testing, it provides automated reports and insights that enable organizations to make better marketing decisions and maximize their customer conversion rate.

Conversion Rate Optimization Software (CRO) Market Segmentation: By Company Size

• Large Enterprises

• Small and Medium-Sized Enterprises

In 2022, based on market segmentation by company size, large enterprises occupied the highest share of about 32% in the market. Large enterprises such as tech and finance companies, e-commerce companies, and others are the prime users of CRO software. They require CRO software to increase their online market presence by attracting customers through multiple domains. Moreover, these organizations utilize advanced CRO software with specialized integration tools such as automation tools, marketing and analytics tools, customer relationship management tools, and others. These tools offer increased optimization features that enable large enterprises to capture a major chunk of the market and maximize customer conversion rates. In addition, social media platforms are the prime channels for these organizations to increase their market base.

Small and medium-sized enterprises are the fastest-growing segment during the forecast period. These enterprises require budget CRO software solutions that cater to their marketing needs. That is, SMEs utilize CRO software for launching new products and services that help them capture the maximum interest of the customers and increase the conversion rate. Moreover, A/B testing-based CRO software is extensively used by SMEs, as it helps them to preview and optimize their marketing campaign’s performance before publishing it on the online platform. In addition, e-commerce and tech start-ups are the major users of CRO software in this segment.

Conversion Rate Optimization Software (CRO) Market Segmentation: Regional Analysis

• North America

• Europe

• Asia-Pacific

• South America

• Middle-East & Africa

In 2022, based on market segmentation by region, North America occupied the highest share of about 30% of the market. The rapidly booming digital marketing industry with an increase in entrepreneurship and continuous advancements in technology has contributed to the demand for conversion rate optimization software in the region.

Asia-Pacific is the fastest-growing segment in the CRO software market during the forecast period. The fast-booming e-commerce industry due to increased digitization and increasing emphasis on mobile-first technology has contributed to the demand for conversion rate optimization software in the region.

COVID-19 Impact Analysis on the Conversion Rate Optimization Software (CRO) Market

The pandemic had a significant impact on the conversion rate optimization software market. During the pandemic, there was an increase in digitization, which increased the online activity of people such as browsing or surfing on the internet, streaming movies, remotely working and studying, and others. This increased the demand for CRO software, as companies turned their attention toward online platforms on which consumers spent most of their time browsing. Furthermore, during closure of physical stores was another reason for the growth of e-commerce platforms, as consumers preferred online shopping of essential items such as groceries and basic toiletries from e-commerce platforms, resulting in increased demand for CRO software by companies. However, this was only limited to essential items, as companies that advertised luxury products witnessed an increase in bounce-back rates on their landing pages and websites, which negatively affected their growth in the market.

Key Players:

1. Crazy Egg

2. Hotjar

3. Lucky Orange

4. Optimizely

5. Unbounce

6. Survey Monkey

7. BounceX

8. Wingify

9. Kissmetrics

10. Unbounce

11. Qeryz