What is Conversion Rate?
Conversion rate is a measurable online marketing metric that tells you the percentage of your site visitors who end up converting. The more conversions you have per visits to your site, the better your conversion rate will be. Your site’s conversion rate is a telltale sign of how successful your overall marketing strategy is and how well your website is appealing to customers.
Depending on your site’s goals, your conversion rate might be measured at a different metric than others. For instance, if one of your site goals is to have visitors view 3 or more page, you might find that a 10% conversion rate per 1000 visitors is common. However, if your goal is for a customer to purchase a $20 monthly subscription from a paid ad, you’ll likely see that conversion rate be a lot lower due to the difficulty of the conversion, and the size of your visitor pool.
Examples of Conversions
It’s important to properly categorize your conversions and how they’ll impact your business goals. Below are examples of different types of conversion categories that are commonly part of online marketing strategies.
A macro conversion is an action a user takes that you would categorize as a primary objective. In most cases, an e-commerce stores’ primary objective is to sell products, so a macro conversion action would be a purchase of a product from the site..
Other examples of a macro conversion can be subscribing to a service, clicking through a sponsored link, or requesting a quote.
Tracking macro conversions will help you quickly determine whether or not your website performance is on track with your ultimate business goals.
A micro conversion is an action a user takes that isn’t directly related to your hard line business goals or an action that ultimately leads them towards a macro conversion.
An example of a micro conversion is when a visitor is redirected to your site and adds items into their shopping cart (micro conversion action), the items haven’t been purchased yet but it’s a step towards a buying the product (macro conversion action).
Other examples can be watching videos about products or items listed before purchasing, signing up for email lists or creating an account, adding items to wishlist, browsing product pages and product searching.
By tracking micro conversions on your site, you can get key insights into customer behavior, needs, and any bottlenecks in your checkout process.
How to Track Conversion Rates
Tracking your sites conversion rates helps you focus on optimizing campaigns for maximum profitability. They’ll let you know what campaign strategies are working, where you can improve, and (most importantly) what your potential ROI is.
Luckily, many analytics and social platforms offer goal tracking that allows you to track and monitor your ad campaigns, user funnels, landing pages, and more. There are several platforms that will allow you to accurately track conversion rates for your sites:
- Google Analytics
- Facebook Ads
- Instagram Ads
- Google AdWords
- Pinterest Promoted Pins
- Twitter Ads
Calculating Your Site’s Conversion Rate
In some scenarios you may need to calculate your own conversion rate metric.
Calculating conversion rate is a fairly simple process – the actual equation is the total number of users who converted divided by the total number of users who came to your site. The equation looks something like this:
Conversion Rate = (Macro Conversions/ Total Visitors) x 100%
When measuring conversion rate, it’s important to use the proper measurement period as you don’t want to use a time frame that is too long or too short. This might give you an inaccurate measurement of your sites conversion rate.
Determining the right time period is dependent on what specific metrics you’re tracking and how long your campaign has been running.
Running an ad for two weeks and tracking metrics for a two month period won’t accurately tell you how well that ad campaign did for the entirety of the two weeks so be mindful of time frame when measuring conversion rates.
Once you understand conversion rates and how to track and measure them you’ll have a better understanding of what aspects of your site or ad campaigns need improvement and where your money is best spent.
Using Conversion Rate to Improve SEO
The practice of improving conversion rate is called Conversion Rate Optimization (CRO). It can include a wide range of improvement all dependent on your website, business goals, the products you sell, and what you want people to do when they visit your site.
Below are some essential CRO practices that can help optimize your conversion rate.
Improving User Experience
An unappealing site that is hard to navigate will prevent site visitors from buying from you. Customers like things to be easy! Imagine if you went into a shoe store to get a specific pair of shoes and nothing was labelled so you had to manually open shoe boxes until you found the right brand and size you were looking for. In that case, the poor shopping experience might have frustrated you to the point of walking out and buying the product elsewhere.
The same can be applied to a customer’s website experience.
If site visitors have to work too hard to buy a product or service from your store, they’ll look elsewhere. The pages on your website should be easy to navigate, have a clear purpose, be easy to read, and (most of all) be functional. If you find that you get lots of visits to particular category page, with a really low conversion rate, it may be an indication that your customers aren’t finding what they’re looking for and are looking elsewhere. Ask yourself the following questions:
- Does the page look busy?
- Is messaging clear?
- Is it easy to find products and add filters?
- Does it load quickly?
- Is it easy to checkout?
Increasing your website’s user experience will help your customers be successful in their product pursuit, boost conversion rates, and entice visitors to return.
Knowing Your Audience and Testing Your Traffic
If your current marketing practices are being shown to the wrong audience, this could be why your conversion rates aren’t improving. Know your audience and know how to market to them. If you’re unsure whether or not your targeting the right market and don’t understand why your marketing methods are producing poor conversion rates, you should check your audiences’ demographics overview to make sure your target audience is the group who’s actually buying from you.
If it’s not, test a new audience demographic by targeting a different group of potential customers. Monitor, track and adjust as necessary. You can see major improvements in poor conversion rates and overall sales by knowing who your audience is.
Tracking Multiple Page Elements
Tracking multiple elements on the landing pages can help you measure and better understand how your tests impact the different ways a visitors achieve your desired actions. You’ll be able to learn and determine which experience was better for visitors by tracking multiple elements.
Site Elements Worth Tracking:
- Click through actions for links on landing sites that prompt the user to watch videos or “learn more” about products which encourages macro conversion actions like buying or signing up for a service.
- Clicks on “create account” buttons and monitoring how many convert to members of site
- Monitoring user movements and tracking what pages they visit from landing page
Tracking multiple elements on a site will be dependent on the site’s goals. For example, if you’re a blog site you might track the number of users who click to watch your videos, monitor new visitors who land on a page and subscribe to your site and users who click through on links about products you promote.
Conversion rates are key indicators of the success your site is having with your various target audiences. Understanding how conversion rates work and how to optimize them as a campaign progresses will help improve your site’s overall performance saving you time and money on your marketing efforts while enhancing user experience while ultimately increasing sales.