Conversion rate is the percentage of visitors who make a purchase after interacting with your website. There are many ways to measure conversion, from defining it as a sale through an ad, to booking an appointment. To set a benchmark for your conversion rate, consider the statistics for your industry. For example, dating and personal services have conversion rates of more than 9% – a high rate compared to the average industry rate of 3.75%. Meanwhile, legal and real estate have conversion rates of less than two percent.
The conversion rate varies by industry, with e-commerce having higher conversion rates than B2B websites. For example, an ecommerce site with a 3.71 percent conversion rate will make more money than a business offering legal services, even though the former might not attract as many users. Moreover, the conversion rate of an ecommerce store selling gifts could be much higher than that of a site selling sports goods. In addition, different sections of a big ecommerce site can have different conversion rates.
The duration of the measurement period should be short enough to track the conversion rate across several periods, but long enough to make a difference to the business. Using a full year to measure the conversion rate would yield a solid set of numbers, but you could end up losing the business! So, choose a period of a month for measurement. For some industries, a ten percent conversion rate is unrealistic. The CPA, or cost per acquisition, tells how much profit a campaign will produce.
To calculate your conversion rate, divide the number of visitors by the number of goals completed. This ratio is a good indicator of ROI, and it’s easy to measure over time. It’s also a good indicator of the effectiveness of keywords, ads, and newsletters. It also shows how long users spend on a website and whether it is converting effectively. For example, if a user spends less than two minutes on a page, it is more likely to convert them into customers.
The CTR is another important metric in marketing. It tells how many times a user clicks on an ad to download an app. Often, the CTR varies by pricing model, but generally speaking, a cost per install campaign will have a higher conversion rate than one that measures engagement events. In addition to the CTR, you should also consider your click-through rate. The higher the CTR, the higher your chances are of a successful conversion.
The average conversion rate for all types of businesses is between two to five percent. Although this is an admirable figure for some, most companies are not satisfied with that number. An ideal conversion rate should be at least ten percent. If your conversion rate is between two and five percent, you should continue to optimize your website until you achieve a positive result. The key is to find the right combination of conversion rate optimization strategies. Only then can you be sure that your website is converting effectively.
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