You have probably heard the term “conversion rate” before, but do you understand what it means and why it is essential in your digital marketing strategy?
This article will walk you through the definition of a conversion rate and why they are essential to consider in digital marketing. So let’s get into it!
What is a Conversion Rate?
A conversion rate illustrates the percentage of people completing a goal or desired action. Your marketing strategy is responsible for defining these set goals or actions. Examples of action include: clicking on an ad, signing up for a newsletter, or purchasing.
You can have several conversion goals for your website and app, each with a different conversion rate.
Why is Conversion Rate Important in Digital Marketing?
A high conversion rate indicates effective marketing and web design. Conversion rates are significant because they show that people want what you sell and can quickly obtain it!
Furthermore, tracking conversion rates for digital marketing campaigns is essential to growing your business online. Conversion rates are a great way of determining the success of your campaigns and comparing and contrasting the performance between different advertising channels.
Additionally, a high conversion rate means your content is effective. Therefore, tracking your conversion rate enables you to adjust your marketing efforts, increase your content strategy’s effectiveness, and understand cart abandoners’ behavior from any advertising campaign.
What is Considered a Good Conversion Rate?
Across all industries, a reasonable website conversion rate is between 2% and 5%. However, conversion rates can differ depending on your industry or business model.
Some industries, such as e-commerce sites selling electronic products or commercial services, tend to have high-performing conversion rates. However, enterprises that sell industrial equipment usually have lower average conversion rates.
How to Calculate Your Conversion Rate
Conversion rates can be calculated by dividing the total number of conversions (or users who ‘convert’) by the overall size of your audience. The result is then converted into percentage form.
For example, let’s say you are running an ad on Google. If you had 60 conversions from 1,000 ad interactions, you would divide 60 by 1,000. Therefore you would end up with a conversion rate of 6%.
Knowing that 6% of people who saw your ad converted, you now have a metric you can try to improve for future growth.
Improving Your Conversion Rate
Increasing your conversion rate will result in more visitors to your website converting through significant actions, such as submitting a form to become a lead or making a purchase, which will ultimately help your business grow.
To improve your conversion rate, consider conversion rate optimization (CRO).
Conversion rate optimization (CRO) refers to establishing conversion goals, determining conversion rates, and optimizing your website or app to increase conversion rates.
In other words, CRO involves evaluating why your website or content is not converting and then determining how to solve it.
A/B testing is an excellent way of assessing your content for your site’s conversion rate optimization.
A/B Testing
A/B testing tests two versions of a page against one another to determine which one performs best. A/B testing is used in most conversion rate optimization (CRO) projects.
The steps to perform A/B testing are as follows:
1. Choose which conversion behavior to test.
2. Figure out where you are losing site visitors.
3. Make a list of possible improvements that could solve the situation.
4. Decide how many improvements to test at once and which ones to try first.
5. Use an A/B testing tool! An A/B testing tool will make the improvements you wish and randomly assign each visitor to one of two versions.
6. Determine the duration of the experiment.
7. Examine your results!
You can repeat these steps as often as necessary to achieve your desired conversion rate.
Furthermore, you can test dozens of features on your website, from headings and subheadings to social media links and call-to-action buttons. Even within these categories, you can experiment with variables like font size, color, button location, background color, etc.
Tips for Boosting Your Conversions
- Include more dynamic language in your calls to action (CTAs). Active verbs like “join” or “buy” prompt site visitors to do something. You can also frame the calls to action from the visitor’s perspective. For example, phrases like “Yes, sign me up!” can inspire them and make them feel connected to your website
- Display customer testimonials and reviews on your site. According to research, most consumers trust internet reviews equally as much as personal recommendations. And for a good reason! Online reviews make your product or service appear less risky to other consumers. These also have the power to prove that your company values customer service.
- Address customer pain points and highlight solutions. Make it obvious how using your product or service will benefit your site visitor. Better yet, demonstrate why they can’t afford not to use it.
Conclusion: Do Conversion Rates Matter?
Now that we have walked through what a conversion rate is, do they matter? The answer is: yes.
Conversion rates are an essential metric for your digital marketing campaigns. Your conversion rate can help determine the success of your online marketing campaigns. The higher your conversion rate, the more influential the campaign content.
Tracking your conversion rates will result in more successful marketing strategies. So, set your conversion goals and start tracking your conversions today!
