What is a conversion rate and how to optimize it?

October 6, 2022

The conversion rate is one of the most fundamental metrics for any online business, no matter how large or small. Whether you’re actively trying to grow your eCommerce site, increase the number of people downloading your app, or make your services popular, the conversion rate matters. It can help you establish how well you’re capitalizing on the traffic you’re already receiving from different channels. 

In this article, we’ll explain what a conversion rate is, why it’s important, and how you can optimize it to achieve more rewarding results. 

What is a conversion rate?

Let’s start from the basics and define what a conversion rate is in the first place.

The conversion rate reveals the percentage of users who have completed a specific action. This action could be anything from filling out a web form or providing their email address to purchasing a product or signing up for a service. 

You can calculate your conversion rate by dividing the total number of visitors who have converted (performed the desired action) by the total number of users in the audience and turning that figure into percentage form. In short, the conversion rate is the number of conversions divided by the overall number of visitors. 

Let’s look at an example.

Imagine that you’re in charge of an eCommerce site that currently receives monthly traffic of 500 visitors. Let’s say that you’ve generated a total of 50 sales for the previous month. In this case, you’ll need to divide 50 by 500, which equals a conversion rate of 10%. 

It’s worth noting that conversion rates vary drastically depending on the industry. A conversion rate of 10% or more is usually considered very good, and on standard, the average conversion rate is around 2.35%.

But why is any of this important?

Why does conversion rate optimization matter?

In a nutshell, conversion rates can empower you to track the performance of any web page or app. It allows you to measure how many users that land on a page or an app perform actions like purchasing or downloading. As a result, the conversion rate is a reliable metric that uncovers how successful your site or app is and can be used to detect weak spots that need optimization for higher conversions. 

Optimizing your conversion rate will enable you to enjoy more sales and profits using the same traffic you already have. And this is extremely important, as driving traffic to your website certainly demands substantial effort and money. 

Looking at it from another perspective, if you manage to increase your conversion rates, you’re also increasing the value of your ad spend to acquire more traffic. Once you notice a rise in conversion rates, you can gradually reduce the amount of money spent on advertising. Why? Because you will be receiving additional revenue from the same amount of traffic. 

How to optimize your conversion rates

Create strong CTA buttons

CTA buttons are key to encouraging visitors on a site to perform a particular action. For example, optimizing your blog posts with call-to-action buttons, like “Get in touch” or “See our products”, can dramatically increase the percentage of users continuing their journey on your website. 

Keep in mind that banner blindness is an actual concern, as more and more users become accustomed to the multitude of promotional material on websites and form the habit of ignoring it. To protect yourself from this risk, make sure your CTA buttons are vivid, eye-grabbing, and attractive. The best way to land on the CTA that works is to perform tests with different versions.

Experiment with on-page colours

User experience is directly linked to the use of colours on a page. While some colours are mostly utilized to provide information to the user, others are more effective at encouraging an activity or motivating visitors to perform a specific action. The choice of colour should also be synchronized with your brand and consistent throughout your promotional, educational, marketing, and other materials. 

Play around with the colours of your on-page content, buttons, links, banners, and other components. You will be surprised to see how different the results will be in terms of conversion rates.

Use lead flows 

Lead flows are particularly popular for blogs but can also be utilized on different pages, like service or products pages. They’re a powerful conversion rate optimization element that can help you grab attention via pop-ups, slide-in boxes, drop-down banners, and other alternatives. 

Lead flows are useful as they direct the user towards an activity in a gentle and non-aggressive way. They are an effective way to encourage users to share their email addresses,subscribe to your newsletters, visit different pages, or request more information about a product or service.

Integrate a live chat solution on your pages

Another way to increase conversion rates on your website is to integrate a live chat solution on your pages. That will enable you to provide real-time value to users, answer questions, and inspire them to take action. For maximum results, install this messaging feature on web pages that are performing well and attract a lot of traffic. 

These are often product pages and pricing pages. If users have made their way to these sections of your website, chances are that they’re looking to take the next step and make a purchase. All you need to do is provide some additional guidance and help them make the final move. 

Final thoughts

Conversion rates are vital in measuring how well you are taking advantage of the traffic you’re receiving on a web page. Optimising your conversion rates, allows you to enjoy better utilization of your traffic and ultimately be rewarded with more sales and revenue.

If you need assistance with your overall social media and digital presence, let us know and get in touch. We’d be happy to help.

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