The conversion rate is the percentage of users who take a desired action. In simple words, conversion rate is the percentage of visitor to your website that completes a desired goal (a conversion) out of the total number of visitors. Now other hand, A high conversion rate is indicative of successful marketing and web design: It means people want what you're offering, and they're easily able to get it! There are few common types of conversions are as below:
- Making a purchase
- Submitting a form (contact us form, lead gen form, etc)
- Calling your business
- Engaging with your online chat
- Signing up for a subscription
- Registering on the site
- Downloading something (software trial, eBook, mobile app, etc)
- Using something (new/advanced feature on your software or app, simply using your software/app for a certain amount of time)
What is a good conversion rate?
If you are already achieving 3%, 5% or even 10% conversion rates, is that as high as you’re going to go? But what is a good conversion rate? Across industries, the average landing page conversion rate was 2.35%, yet the top 25% are converting at 5.31% or higher. Ideally, you want to break into the top 10% ¬¬- these are the landing pages with conversion rates of 11.45% or higher.
So, what is a good ecommerce conversion rate and how do we get there?
Of course, the higher the rate of conversion the better,
For example: If a particular page on your site has 20,000 visitors a month, but only a 1% conversion rate, that means you’re getting 200 orders per month.
That 20,000 visitors might look great in your Analytics software, but then again, if you had 10,000 visitors and a 5% conversion rate, that’s 500 orders a month, a much preferable setup you have understood.
Why conversion rate is important?
Conversion rate optimization is important because it allows you to lower your customer acquisition costs by getting more value from the visitors and users you already have. By optimizing your conversion rate you can increase revenue per visitor, acquire more customers, and grow your business.
How to calculate conversion rate?
Conversion rate are calculated by simply taking the number of conversion and dividing that by the number of total ad interactions that can be tracked to a conversion during the same time period. All you have to do is divide the number of conversions you get in a given time frame by the total number of people who visited your site or landing page and multiply it by 100%.
For example: If you had 50 conversions from 1,000 interaction, your conversion rate would be 5%, since 50 divided by 1,000 = 5%
Conversion Rate= (total Attributed conversion /total measured clicks)*100
Boost Your Ecommerce Conversion Rates
There are many ways to boost your ecommerce conversion rate some of which are :
- Use high quality images and video on your product pages
- Offer free shipping
- Provide limited time coupon codes
- Be competitively priced
- Tweak and test your ecommerce checkout process
- Use cart abandonment software
What is Conversion Rate optimization (CRO)?
Conversion rate optimization (CRO) is the process of increasing the percentage of conversions form a website , landing page or mobile app. CRO typically involves generating ideas for elements on your site or app that can be improved and then validating those hypothesis through A/B testing and multivariate testing. A real world example of CRO is captured in this case study from ComScore, a web analytics company that provides marketing data to enterprises. The company started by setting a conversion goal from their product page (leads generated), determined the conversion rate, them set up an experiment with different ideas for improving the conversion rate of the page.
A/B testing also known as split testing and bucket testing is a method of comparing Two versions (A,B) of a webpage or app against each other to determine which one performs better. It is include application of statistical hypothesis testing or two-sample hypothesis testing, as used in the field of statistics. Variable A might be the currently used version (control), while version B is modified in some respect (treatment).
Tips to improve conversion rate?
- Add a guarantee (Give the customer a fair time period to try the product. state what happens if the customer isn’t happy with the product)
- Use testimonials
- Keep conversion elements above the fold
- Use video to humanize your brand
Regardless of what approach you take from the tips above, make sure that you consistently track, monitor, and analyze the results of the changes you make. This will help you understand what works best with your audience.
There is always to improve your ecommerce conversion rate further. All you need to do is to experiment with various optimization tactics to increase your ecommerce conversions.
If you have any questions, please feel free to ask them in the comments below. My team and I will be more than happy to help you.