Understanding Digital Marketing Conversion Rates

As a business owner, you have probably heard about conversion rates and how they can impact your digital marketing strategy. Achieving a high conversion rate can be a confusing and difficult process, but it doesn’t have to be. You may also be wondering what a good conversion rate is and how yours compares to other companies or organizations in the same industry. Before you reach out to an SEO company Santa Rosa, here are some interesting facts about conversion rate you should know.

Calculating Your Conversion Rate

Your conversion rate is the percentage of visitors to your website who carry out a desired action compared to the total number of visitors who could have converted. To calculate your conversion rate, use the following formula:

(Number of visitors that converted / Number of people who visit the page) x 100

For example, if you have 300 visitors and 100 of them convert, you will divide 100 by 300 to get 0.3333. When this figure is multiplied by 100 you will get a conversion rate of 33.33%. The higher your conversion rate is, the more successful your marketing strategy is. If you have a high conversion rate, it means you are adequately showcasing the value of your services or products to your intended audience, and they can find and learn about them with ease.

What Does Your Conversion Rate Mean for Your Business?

Your conversion rate has a major impact on your digital marketing campaign. Whenever you launch a new campaign, you can monitor your conversion rate to see if the results are what you want. As previously mentioned, a high conversion rate means your marketing strategy is working to some degree, however, a low conversion rate means it may need some tweaking. When it comes to digital marketing, your conversion rate isn’t just equivalent to sales. Your rate can be actions such as signing up for an online seminar or downloading a form. In other words, there are different types of conversion rates in the digital marketing world.

What is a Good Conversion Rate?

So, how exactly do you know if your conversion rate is good? Realistically, there isn’t really a precise number that reflects every company and industry. The perfect conversion rate varies among industries. For example, if you own a car dealership, you may view a conversion rate of 3% as a sign of success. Conversely, if you own a clothing store, your ideal number may be closer to 25%. Since it is easier to get people to purchase clothes when they visit a store, you can expect a higher conversion rate. On the other hand, it is more difficult to get customers to make large purchases such as vehicles because of their relatively high cost.

What Contributes to a Low Conversion Rate?

It is possible that after performing your research you discover your conversion rate is lower than the industry average. Even though your conversion rate is low, there is no reason to panic. Often, two primary factors can result in a low conversion rate:

Your website doesn’t adequately showcase the value of your products or services.
Your landing page is too difficult to navigate (this also means it is also difficult for customers to make purchases).

There are other factors that can contribute to a low conversion rate, but these are the two most prominent.

Ways to Increase Your Conversion Rate

Make CRO a Habit

Businesses often create elaborate CRO (conversion rate optimization) plans but fail to follow through. Factors such as unexpected projects, limited resources, and a lack of time can throw your CRO plans out the window, and when this happens, your conversion rates can stall. If you truly want to increase your conversion rate, you will need to dedicate time to CRO and make it a habit. Making CRO a habit may seem easier said than done, but you can do so by:

Establishing a time in your calendar and schedule
Setting reminders
Creating team or personal goals for obtaining a higher conversion rate

The higher your conversion rate is, the more revenue your company will bring in.

Utilize Different Call-to-Action Offers

Offers play a major role in whether a person converts. For this reason, you will want to experiment with different offers. Try utilizing various phrases, words, and call-to-actions. Depending on the software you use, it may be possible to integrate specific features into your offers.

Perform Major Tests

To increase your conversion rate, you will need to take testing seriously. Updating an image or changing the color of a button will more than likely have a minimal impact on your conversion rate, you will need to get used to performing major conversion rate optimization tests. More significant tests, such as changing page design can have a larger impact on your conversion rate since it affects user experience. Once you get used to performing larger-scale tests, you can start to transition to smaller tests.

Get Started Today

If you are ready to increase your conversion rate and take your company to the next level of success, Fitz Designz is here to help. Our search engine optimization services are top-notch and professional. Contact us today to get started.