In digital marketing one term that is constantly used is conversion rate. In fact, the ultimate goal of digital marketing strategy is to increase or improvise the conversion rate. Higher is the conversion rate better is the health of a business. A brand is not built by lavishly spending on ad campaigns but how much the ad campaign is able to bring the visitors to the company’s website.
Thick traffic on a website leads to a higher conversion rate and higher is the conversion rate, better is the marketing strategy for making visitors do what a company wants them to do.
What Is Conversion Rate?
A conversion rate is the number of conversions divided by the total number of visitors multiplied by 100. For example, if 300 people visited a website and have 60 sales then the conversion rate will be calculated as 60 ÷ 300 × 100, that is 20%.
A conversion can denote any action that a company wants the visitors to take depending on its business goal. Given below are the few types of conversions.
- Buying a product/service/subscription
- Filling and submitting a form
- Engage in online chat with customer care
- Registering on the website
- Downloading a form/app/brochure/software trial
- Time spent on a website and number of pages visited
Conversion is measured as progress that a potential customer does for buying products/services/subscriptions using one of the way mentioned above.
How To Calculate The Conversion Rate?
Conversion rate can be calculated using the formula as mentioned earlier or by using analytics platforms as given below to check the conversion rate.
- Google Analytics
- Facebook Ads
- Google Ads
- Twitter Ads
- Pinterest Promoted Pins
A company can be very specific or comprehensive with the conversion rate as it wants to be. Given below are the varieties of conversion rate and the ways their data can be used to evaluate the performance.
- Total conversion rate: This shows how good the company’s website convert the traffic using marketing channels and platforms.
- Keyword conversion rate: This shows which keywords can be used to enhance website traffic and engagement.
- Marketing channel conversion rate: this shows which marketing channel is directing more traffic on the company’s website.
- Page-wise conversion rate: This shows webpages that are working well to engage or converting the traffic.
- Campaign conversion rate: This shows the performance of the ad campaigns in converting the traffic
Conversion rate is the best method to measure the performance of anything and everything that is part of digital marketing.
What Is A Good Conversion Rate?
There are no specific criteria for defining a good conversion rate because every company has different business goals and also the conversion rates differ as per the kind of business, quality of traffic, kinds of products and services, etc. To put it simply a good conversion rate for a company is exclusive of its marketing campaign and business.
Conversion Rate Optimisation
Conversion rate optimisation involves marketing strategies to convert website visitors into potential buyers. It focuses on optimising company’s website, improves UI/UX, and build customer loyalty. CRO helps in getting most out of the traffic that a company’s website already has. For example, improving the conversion rate from 1% to 2% i.e. double the conversions without increasing the traffic on a website.
The conversion rate can be optimised in the following ways.
- Conversion Funnel: Conversion funnel shows the gap between the traffic and the conversions. Bridge this gap by analysing website functionality, design, present conversion rate, etc. to fix the loopholes of the website.
- Design Landing Pages: The good landing pages helps in generating thick traffic on the company’s website that is why develops perfect landing pages with high-quality content, eye catchy designs, and minimum visual distractions to enhance conversion.
- A/B Testing: A/B testing helps in identifying technical glitches related to website performance, speed, and UI/UX aspects.
- CTR and Heatmap: Having a good website doesn’t guarantee a higher conversion rate. It is important to check that visitors are clicking in the right place. Empower the website with heatmap and click tracking to see the actual value of the webpages, user journey and path analysis to remove the barriers to increase the conversions.
Why Is It Important to Optimise the Conversion Rate?
It is important for all kinds of industries and companies to optimise their conversion rate for achieving business growth and stay at the top in their domain among their competitors. Following are the benefits a company can gain by optimising the conversion rate.
- Give better customer insight
- Enhance website revenue
- Generate thick traffic over the website
- Boost new customer acquisition at a low cost
- Improve website ranking
- Build customer loyalty
- Optimise paid ad campaigns
- Generate more leads for the business