In the simplest terms, conversion rate refers to the percentage of visitors to a website who complete a desired action, such as making a purchase or filling out a form. It is calculated by dividing the number of desired actions by the total number of visitors and multiplying the result by 100. A high conversion rate means more visitors are taking the desired action, indicating a successful marketing strategy.
For instance, if a website receives 500 visitors per month and 50 of them make a purchase, the conversion rate would be (50/500) x 100 = 10%. Similarly, conversion rates can be calculated on other desired actions, such as clicking a button, subscribing to a newsletter or downloading an ebook.
Conversion rate is a key metric for digital marketers, as it helps them measure the effectiveness of their campaigns. A low conversion rate indicates that the marketing message or strategy is not resonating with the target audience, and adjustments need to be made. Conversely, a high conversion rate means the marketing message is working and the campaign can be scaled up.
Q. What is a good conversion rate?
A. A good conversion rate varies by industry and the type of action you want visitors to take. Typically, a conversion rate of 2-5% is considered average, and a rate of 10% or higher is considered excellent. However, the best metric is to compare the current rate with your previous rate and see if it has improved.
Q. How to improve conversion rate?
A. To improve conversion rate, you need to optimize your website for the user experience, ensure the messaging is relevant and targeted, make the call-to-action (CTA) clear and prominent, reduce the number of form fields, and use social proof by including customer reviews or testimonials. You can also run A/B tests to compare different layouts, messaging, or CTAs to see which one performs better.
Conversion rate is a critical metric that determines the success of your marketing campaigns. By measuring the number of visitors who take the desired action on your website or landing page, you can identify areas for improvement and optimize your strategy for better results. Keep testing and tweaking your website until you achieve a higher conversion rate and achieve your business goals.