What Is a Good Conversion Rate and How to Increase It in 2022?
Disclaimer: Tracking the conversion rate is essential for any business to know the gaps that should be covered and to plan a marketing strategy accordingly.
Table of content:
- What is the conversion rate?
- How to calculate a conversion rate?
- What’s a good conversion rate?
- Why is the conversion rate important?
- How to improve the PPC conversion rate?
- The 10 best tips to boost your landing page conversion rate
The conversion rate (CR) is an essential indicator that should be taken into consideration by any business owner. It shows how many people walking past your store in reality or those surfing the Internet will decide to buy a product or service, sign up for the newsletter or request a call back. Therefore, CR shows how many people are turned into your customers. It is possible to improve the conversion rate indicators with the help of various tools and methods. In this article, we will plunge into the details of the CR for various types of businesses and ways of increasing it.
What is the conversion rate?
An average conversion rate falls between 2 and 4%, depending on the industry. If the conversion rate is 10% or higher, you are the owner of a successful business. But the differences in the type of business, season, and type of product or service level push managers to carefully study the business domain and the indicators of the competitors to understand if any efforts must be made in order to improve the situation.
How to calculate a conversion rate?
To find out the conversion rate of your business, you need to divide the number of conversions by the total number of visitors to the website and multiply the result by 100%.
By conversions, we mean what a business wants their visitors to do. It may be a purchase of a product or service, an agreement to share contact information, a request for a demo, an online registration, etc.
For instance, your website is visited by 4,000 daily visitors. 100 people decide to buy your product. Therefore, your CR is 2.5%.
100/4000* 100% = 2.5%
Business owners can receive conversion rates immediately from specialized software and analytics tools.
What’s a good conversion rate?
A good conversion rate is a relative value. It depends on the type of business you run, the season, national holidays, etc. We can divide the factors that promote high conversion rates into two groups.
Conversion rates are important, but a satisfying indicator will be different for different businesses. For example, you are currently running two projects. The website of the first project receives 5,000 visitors and 200 license agreements each day. The second project has 1,000 visitors and 100 conversions. Thus, the CR of the first project is 4% and that of the second one is 10%. Judging only by the CR, the second project is more profitable. However, the website for the first project is very well attended. If the aim of the advertising strategy of the first project is to increase brand awareness, the results are satisfying, as 5,000 unique visitors daily is a very promising result.
Therefore, a good conversion rate for one company is a bad conversion rate for the other. The aims of a marketing campaign should be taken into consideration, as well as the cost per lead and the return on marketing investment (ROMI).
Conversion rates by industry
The top conversion rate is often roughly three times greater than the average level, as can be seen from the table. You know you’re doing well if your score falls in the range of the two numbers. Important efforts should be taken as quickly as possible to remedy the situation if your company’s CR is less than 2%. Conversion rates are typically lower in a competitive domain. For example, customers in the financial industry are looking for some specific services, and the competition is lower compared to the mass market or eCommerce.
Conversion rates by channel
Organic traffic is the most reliable channel, yet the most difficult to set up. However, if the SEO experts are doing their job correctly, the content of the website is unique and helpful, and the quality of the product is flawless, then you can expect word-of-mouth to be your major advertising channel. In this situation, customers will rely on your company and trust you. As a result, CR will be skyrocketing. Social media demonstrates the lowest levels of the CR, as people scrolling through the newsfeed hardly ever realize they need your goods. You have to convince them and be a true expert in proper targeting.
Ecommerce conversion rates
As for e-commerce products, the more expensive the product is, the more time customers take to think about the purchase. People are unlikely to buy luxury handbags or expensive home appliances often and impulsively. Conversely, food and beverages, as well as beauty products, spend much less time on the store shelves.
Why is the conversion rate important?
The conversion rate demonstrates your business’s profitability. It shows if customers are interested in your product or service, how competitive you are in the market, and how you can develop your business and plan a proper marketing strategy. The CR is an important indicator of commercial success and a motivating trigger for the following enhancements.
How to improve the PPC conversion rate?
Before tackling the improvement process, it is important to understand the initial position of your CR. Therefore, you will know where you started from and be able to evaluate your progress. You can use various tools to monitor the conversions from every current pay-per-call campaign. With this data at hand, you will understand which of the campaigns performs better. You will see your average CR based on all the campaigns, and you will be able to compare the current CR level with that of the previous period. You also need to take into account purchases made through email and instant messaging in addition to PPC interactions and landing page conversions. Without this data, the CR indicator will be inaccurate.
Conversion rate optimization (CRO) plans may include various steps. One of them would be the implementation of A\B testing.
The idea of this method is quite simple. You choose a feature you wish to test and create a version of a website or landing page with an alternative design. For example, you might want to see if a different color and location of the CTA button will result in more conversions. You create another website and send users randomly to either of the options. After a set period of time, you compare the results. If the CR of the site with a new CTA button is higher, you can take it as the final version. All the work can be done either with the help of your developers or special tools and programs.
Pay attention to several tips when dealing with A/B testing.
- Use the heatmaps and analytical tools to decide which idea you wish to check. Try to focus on just one feature; otherwise, the results will be hard to interpret.
- If you have several features to test, make a plan for which of them will be tested first, and which can wait. Set the deadlines for the results and their interpretation.
- Evaluate your resources and choose a relevant A/B testing tool depending on the reviews, price range, and possibilities.
Make your sales funnel easy
The Internet provides tons of useful information regarding the best structure for your sales funnel. Without going deep into details, a common sales funnel has an AIDA model. The letters stand for the following:
- Awareness: get your target audience familiar with your product. Create eye-catching advertisements and landing pages. Use the latest trends to catch the target audience.
- Interest: show your audience that you are worth their attention. Share your expertise in posts or videos. Motivate them to subscribe to your news.
- Decision: offer your leads something useful in order to pique their interest and collect their emails. It may be a free tutorial, a webinar, or a checklist of handy tips.
- Action: offer a special price or a discount on your main product to your registered leads. Show them you appreciate their interest and are ready to be generous.
After the purchase is done, you can offer your clients further updates with a discount, arrange a reference program, or offline events to retain them and make them your brand ambassadors.
Call tracking software
If your business implies much communication with customers over the phone, you will benefit significantly from call tracking software. It provides marketers with virtual phone numbers that they can assign to advertising campaigns. When people start calling, the analytical data in the online account reflects key metrics necessary to apply any changes to the ads and to analyze their effectiveness. Various call tracking tools available on the market today range in price and functionality. The features that can significantly increase the CR of your business are the following:
- Real-time analytics shows the keywords, the location of the callers, and stores call recordings.
- Automated routing allows users to set preferable working hours for your staff and guarantees no lead will be missed.
- IVR menu allows delegating part of the routine tasks to a virtual assistant and to offer the callers a possibility to call back.
- Pay per call campaigns enable marketers to monitor the budget and get transparent data about the costs per conversion.
Dialics call tracking software offers its users all the necessary features to conveniently set up ad campaigns and monitor their results and CR levels. Dialics is capable of improving key marketing indicators in multiple business industries. It is a powerful solution that is easy to learn and mighty to bring you commercial success and stable growth.
The 10 best tips to boost your landing page conversion rate
- Do not dive into enumerating the features of your almighty product. Focus more on the benefits of the product for your customers. Explain to them what they gain with your product and how it helps them overcome their difficulties.
- Check if your CTA buttons work well. Use the website heatmaps to see what parts of the website are most often interacting with the visitors. Heatmaps also allow you to see if the CTA buttons are visible and getting enough clicks.
- Make the product description clear and precise. Be honest with your clients. It does not mean you should scrupulously specify all the minor shortcomings, but rather reveal the critical potential of your brainchild. Use simple English to avoid ambiguity and confusion among website visitors.
- Add customer testimonials and reviews. In a world of fierce competition, people trust the reviews of their peers. Do not delete negative reviews. Conversely, try responding calmly by offering an irate customer any form of compensation. Reacting only to positive reviews will not add scores to your brand image, and clients will feel suspicious about your business.
- Ask your visitors to fill in as few registration or contact fields as possible. In the modern hectic time, people value their time. Do not make them wait or do too many formal tasks. Offer an incentive to show that you appreciate their efforts.
- Create special landing pages for your paid advertisements. Give your customers the option to acquire your products and services right now. A landing page should include pertinent information about the product and straightforward ordering guidelines.
- Invest in remarketing. You can re-engage leads who put off buying your product for a variety of reasons using specialized tools and programs. Make sure your marketing efforts are rewarded and your customers are satisfied with the service.
- Analyze and optimize the purchase funnel. Attracting a person to buy your product is your aim, but not a single one. Make your customers stay with you by offering them after-sales bonuses, reference programs, etc. Broaden the network of your brand ambassadors.
- Add a popup to your website. It works well for eCommerce or as a tool for gathering the database of the clients’ contact details. It can significantly increase the CR, provided that you offer relevant and useful content and do not overload your visitors with offers.
- Add a live chat on your website. It is convenient for users. But make sure there is a full-time agent available online. Waiting for an answer in the live chat can quickly spoil the general impression of the website.
- Bonus: improve your overall online reputation and the average conversion rate will not take long to increase.
How to choose the best call tracking provider?
The decision is based on the needs of a certain project or business. You may wish to track inbound calls and get analytical data on them. Or you may prefer to use advanced functionality with texting, voice messages, etc. Thus, the price will depend on the available features and the amount of phone numbers and minutes purchased. Besides, if you wish to expand your business globally, international numbers and prices for them will also add to the charge.
What is a good conversion rate for PPC?
According to WebFX, the average CR for pay-per-click campaigns is 2.35%. A good conversion rate varies depending on a number of factors. Commonly, a good CR for PPC is above 10%.
What is a good conversion rate on Amazon?
According to WebFX, the average CR on Amazon is 9.47%. A decent conversion rate depends on a variety of factors. Commonly, a good CR on Amazon is greater than 12%.
What is a good conversion rate for email marketing?
According to Barilliance, the average CR for email marketing in 2021 was 15.22%. The indicator is quite high. However, it is lower in comparison with earlier years. Despite losing out to paid search and organic traffic, email marketing continues to be one of the most effective platforms. Around 19% is an excellent CR for email marketing.
What is a good conversion rate for Facebook ads?
According to WordStream, the average CR for Facebook ads across various industries is 9.21%. A good conversion rate is supposed to be around 10%.