What Is a Conversion Rate?
A conversion rate is the percentage of website visitors that take the desired action while on the website. Converting leads can include making a purchase, signing up for a newsletter, or another form of brand engagement.
Calculating a conversion rate includes dividing the number of visitors that took the desired action by the total audience who had the option to take the action. For example, if 100 people visited a website and 10 of them signed up for the email list, then the email subscription campaign would have a conversion rate of 10%.
Why Are Conversion Rates Important?
Conversion rates are an efficient way to analyze and measure the effectiveness of a marketing campaign. Monitoring how often specific efforts lead to the intended outcome allows the marketing team to adapt their strategy to what is working.
Let’s say a marketing team was paying for a pay-per-click (PPC) ad on Google and a boosted post on Instagram to lead customers to the same page. 3000 people viewed the PPC ad, and 150 of them clicked on it, giving the ad a 5% conversion rate. Only 500 people saw the boosted post on Instagram, but 250 of them clicked on it, giving the boosted post a 50% conversion rate.
The marketing team can see these statistics and realize although they reach fewer people through Instagram, there’s a much better chance of consumer engagement on that platform. They may decide to stop running the PPC ad and focus on boosting social media posts, or they may try to use different language or keywords on the PPC ad to encourage engagement.
What Is a Good Conversion Rate?
Truthfully, good conversion rates depend on the industry the business is in. The average conversion rate across all industries is 2.7% on search networks and 0.89% on display networks. (So don’t be alarmed if your conversion rates don’t match our hypothetical company above.)
How to Improve Your Conversion Rate
If your conversion rate is lower than industry standards, then the issue likely lies in either the format of your website or the call to action.
When optimizing your website for conversions: