What is the conversion rate?
Conversion rate is the percentage of visitors that visit your website or landing page and convert.
Converting in this context means that the visitor does what you need them to do. Depending on the industry you are in or the function of your website, what you want the visitor to do may vary. For example, purchasing goods, submitting a form, signing for a subscription, or downloading something from your website are all considered conversion. Engaging with your website in a general manner can also be counted as conversion depending on what the visitor does. if he or she visits a number of pages on the website or spends a relatively long time on the website, this can also be considered a conversion. So, in a very simple sense, conversion rate depends on how many potential users you can turn into paying customers.
Conversion rate is an important factor in web-based businesses especially, for eventually, it turns into income for your business, and thus, businesses must make sure that conversion rate is handled with great care.
The formula to calculate conversion rate is,
Conversion rate = (conversions / total visitors) * 100%
How can you improve your conversion rate?
If you discover that your landing page or website is not taking as much action it is supposed to take, the first step is to look for ways to improve conversion rate. This can be done in quite simple ways as well as more complex ones.
First of all, to make sure your conversion rate rises meaningfully, you must look for a problem with the previous means of conversion. It is crucial to first check whether what you offer is desirable or not. To do this, check if the definition for your product or service is clear and whether it draws attention. Once potential issues with the product are solved, there is more chance that the visitors will convert.
Secondly, mind the aesthetics of your website. The problem may be rooted in the lack of call to action or a clear headline. If the visitor is confused about what they are supposed to do on the website or the landing page, this may affect conversions badly. Also, check if the layout and the colors of your website are flattering.
Lastly, A/B test your website to see which variations are the best.
What is a good conversion rate?
There are many metrics and statistics for a good conversion rate on the internet and business articles.
However, it is important to remember that conversion rates are highly specific. They are specific to business size, industry, traffic quality, and many more factors. Even the specific type of conversion you are tracking may mislead you about your conversion rate. So, in order to see clear analytics of the conversion rate of your website, you must consider all of the factors above.
However, even with its specificity to certain factors, researchers came up with the conclusion that a good conversion rate is above 10%, for all company sizes and all industries.
On top of that, some businesses achieve an average of 11.45%. This type of high conversion rate would place you in the top.
However, one must remember that conversion does not equal purchase. The whole idea behind conversion is to get the visitors to become customers. So even when you have a good conversion rate, good sales may not be guaranteed.