The marketing process requires a lot of work, hours and hours of research, and customer needs analysis. All for one purpose—to optimize websites and marketing strategies, which will consequently lead to increased conversions.
Measuring the success of any strategy is hardly possible without tracking the conversion rate. A high conversion rate means more visitors are responding to marketing efforts. So let’s talk more about how to improve the conversion rate.
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The primary goals of marketing campaigns can take many forms, given that businesses aim for different types of conversions. For example, some businesses have the main objective to sell products, while others strive for paid subscription memberships, software download, or newsletter subscriptions. Sometimes, any activity that goes beyond simple page browsing can count as a conversion.
However, deciding what particular action is a conversion can seem like the most challenging part of the analysis. So, taking everything into account, the simple conversion rate definition goes like this—it’s a percentage of website visitors who perform the desired action.
According to CRO statistics, several factors affect the conversion rate—website speed, page design, visuals, etc. The conversion rate increases with the right visitor, time, and place, which is a tough combination to achieve.
When discussing all the factors that influence a potential customer’s decision, the way information is delivered and whether customers see value in it is highly important. However, one of the most critical factors that affect the conversion rate in marketing is the straightforwardness of the process. It’s not unusual that a visitor loses patience and leaves a website because the checkout process, for example, is time-consuming and complicated.
The first impression is a deal-breaker. Keeping that in mind, it seems natural that the site’s navigation and loading speed also significantly impact conversion rates. Nowadays, people expect quick load times and a smooth online experience, and these expectations are rising continuously. Therefore, a page that takes more than three seconds to load will kill conversions.
Conversion rate can refer to a very specific or broad action that a website visitor has to complete, depending on the business’s needs and digital marketing strategy.
The overall process of calculating the conversion rate is straightforward. Furthermore, platforms like Google Analytics, Facebook, and Google Ads can show conversion rates.
The general and also most used conversion rate formula is as follows: conversion rate [%] = (number of conversions / total number of visitors) x 100.
So let’s see how this formula works in practice. For example, if a website has 15,000 visitors and 2,000 conversions during one month, the conversion rate is 13.3%.
Many websites offer a free online conversion rate calculator. These calculators often provide additional information. For example, some consider the average gross profit margin and average order value (AOV) to evaluate how much extra profit and revenue a website would make in a certain period if the conversion rate increased. They also allow a complete analysis of the marketing and sales process. This way, it’s possible to simulate marketing funnels and evaluate if new businesses will be profitable.
A marketing team’s primary goal is to make sales happen, convert leads, and help improve businesses. Therefore, lead conversion metrics serve the purpose of determining how effective the marketing strategy is.
Many businesses accept this measure as a marketing team’s key performance indicator (KPI). So, low lead conversion rates indicate that the sales process needs improvement.
The way to calculate different types of conversion rates is the same, with a few minor changes. Two figures are essential for measuring lead conversion rates―converted leads and the total leads.
What we’re interested in here is the number of leads converted to opportunities during a specific period, divided by the number of leads created. For example, if there are 100 leads created in a month and 15 convert to opportunities in the same month, then the LCR is 15%.
A landing page is a standalone page with the primary role to convince visitors to buy, sign up, download files, etc. One way to increase the possibility of customers ending up on the landing page is to make sure they stumble upon it through a general search or business website. A well-created landing page increases website conversions because it offers a solution to a visitor’s potential problem while asking for something simple in return, like an email address.
The goal conversion rate for a landing page is 11.45% or higher. Different industries have different average conversion rates for landing pages. Other important factors that affect this type of conversion rate are environmental demand, business offering, and the targeted audience. The importance of a landing page role in the quality of leads and increased conversions is vast. One way to make a landing page better is to use video content. Videos complete the site’s content by giving the information on the page more context and value.
Ecommerce is the activity of selling and buying services and goods on the internet. It often refers to selling online products and any commercial transaction that happens online. However, only the buying and selling of goods and services are considered ecommerce. The conversion rate for ecommerce is the ratio of transactions to sessions, expressed as a percentage. The most desirable ecommerce conversions are signing up, completing a purchase, adding products to a cart, and keeping products on a wishlist.
In April 2021, the average conversion rate for ecommerce was 2.12%, according to the IRP. Website traffic quality, the product, and industry are essential factors that significantly affect conversion rate. There are many tools capable of estimating the number of website visitors. However, only a few of them can calculate any website conversion rate.
The information about conversion rates is protected on the internet. The reason is evident because businesses aren’t very keen on sharing their website performance with their competition.
A good conversion rate for ecommerce varies across different sectors, but it would be best for a website to reach around 2%+. Many parameters determine a conversion rate, like the number of purchases, industry, transaction value, and devices. For example, the average desktop conversion rates differ from mobile conversion rates for the same website.
So after taking everything into account, it’s wise to measure the success of a website by comparing its conversion rate to average conversion rates for the same category.
Websites usually have one of the following goals: adds-to-cart, purchases, or sign-ups. Google Analytics can track all those goals. It calculates this conversion rate as the number of goal conversions divided by the number of sessions, times 100.
It’s important to find information about three things to improve the conversion rate:
The Etsy Shop Manager page offers the possibility of calculating the conversion rate, and it gives an overview of all visits, orders, views, and revenue. The conversion rate for Etsy is a percentage of successful sales divided by the total number of visitors for a certain period and then multiplied by 100. For example, if there are 30 sales in one month and the total number of visitors for that period is 900, then the conversion rate is 3.33%.
A good Etsy conversion rate is around 3% or 4%, which is also the average. If a shop has a conversion rate above 4.5%, it’s safe to say that it’s at the top of the game. There are a couple of ways to improve the conversion rate on Etsy, like using high-quality photography, getting more product reviews, fast and free home delivery, and informative and on-point descriptions. However, many external factors affect Etsy rates, like algorithm changes.
Sales conversion rate is a measure of how successful the sales team is at converting leads into customers. This rate is a vital metric that helps in pinning down the quality of leads.
Amazon’s good conversion rate is around 10–15%, on average. Still, regardless of the conversion rate success, there is always room for improvement. One of the reliable ways to increase Amazon’s conversion rate is PPC advertising.
The pay-per-click model is based on keywords. For example, online ads (sponsored links) appear when someone searches for a keyword related to the service or product being advertised.
Therefore, companies that rely on PPC advertising analyze the keywords that are closely connected with their products or services. If a company invests in relevant keywords, that will consequently lead to more clicks and higher profits.
Furthermore, since businesses only pay per click, this advertising model can significantly maximize ad spending and help the marketing team in its mission to increase ROI.
Ecommerce businesses and company websites are the center of the marketing world. Digital marketing is more present than ever, exploiting the full potential of internet fever and the fact that everybody’s online. Nowadays, the main goal of all marketers is to optimize brands to gain quality leads that will eventually convert into sales. Therefore, understanding the process of optimizing the conversion rate is vital to every company’s growth.
Conversion rate optimization is a system that improves the performance of the website and leads to more sales. The main advantage is that there is a higher return on investment that businesses make in the first place to attract potential customers. On the other hand, CRO is a long-term process.
SEO is closely related to CRO and helps the improvement of the quality and quantity of website traffic from search engines. If a business doesn’t appear on the first page of the search results, the conversion rates will consequently decrease.
Upon diving deeper into conversion rate analysis, you’ll discover that mixing CRO and SEO strategies may be the best way of improving Google search ranking for your business. Adequately addressing the website visitors is a half-done job in the process of increasing the conversion rate. Therefore, every marketer should research what kind of content is appealing to a target audience and further work on content creation.
SaaS applications are the usual way to track and analyze keywords, create a content strategy for a website, and increase SaaS conversion rate.
For example, the SerpWatch keyword checker is a feature that helps in the process of identifying the right keywords and tracking their performance while offering a comprehensive overview of keyword performance on a single screen.
On the other hand, tracking keywords and overall website ranking is also one way to measure ROI on SEO, which is a simple calculation that will reveal just how big a business’s return on investment is.
Conversion rate is maybe the most used term in digital marketing, and for a good reason. This metric is essential for online businesses. However, many companies are struggling to figure out how to increase conversion rate.
CRO answers vital questions like, “how to rank higher in Google.” A few methods lead to an increased conversion rate, but the experience says that SEO should be a part of every marketing strategy.
Some tools, like SerpWatch, allow users to track keywords that are essential for creating engaging content and improving Google rankings. A higher ranking means more website visits and chances of conversions. The final result is, of course, more sales and revenue for a business.