With practically every business having an online presence these days, one of the terms that gets bandied about a lot is conversion rate. A lot about a business can be judged on this term alone – its success, its potential to grow and even whether it is marketing itself efficiently or not.
So, the question arises – what do we mean by website conversion rate. The definition states that a website’s conversion rate is the number of people who take or complete a desired action. In simpler terms, what it means is the number of people out of all the visitors on your website who are doing what you want them to do. This term is most commonly used for sales on ecommerce websites but that is not all that it is limited to.
The concept of conversion rates goes beyond the sales on ecommerce websites; it actually refers to the value of different design projects. A conversion rate doesn’t have to mean only sales; it can mean any key performance indicator or KPI that is relevant to your business. Some examples are registering on a website, subscribing to a service (free or paid), letting the website store credit card information so that checkouts are easier in the future, using an application’s advanced or new features, regular and consistent use of a mobile app, upgrading the level of service or even just spending some time on a website or going through a predetermined number of articles on it.
Why is the Conversion Rate So Important?
While getting an accurate count of the number of conversions is definitely helpful, it is much more important to keep a track of the rate of conversion. This is because the count of conversion could be affected by something as disparate as a marketing or advertising campaign. This means more traffic coming in. But the conversion rate measures what people are actually doing once they arrive at your website. If the design of your landing page is such that visitors are finding it difficult to navigate or enter information, they won’t complete the desired action, thus lowering your conversion rates.
Good Conversion Rate
The next question that comes up is – what is a good conversion rate? The first thing you need to realize is that there is no fixed number for all businesses. It really depends upon the industry you are in and the business model you follow. Obviously, for your site, this is a number that is higher than what it was earlier. Factors that can affect the conversion rate are the company’s brand reputation, the price, the complexity of sales and even the commitment level of the user. These are all factors that your user experience or design team won’t have any control over.
You can optimize your conversions by paying attention to your website. Find out what drives more conversions by testing different elements. A strong CTA or call to action works wonders. Make sure that the product images you use are high quality. The landing page of your site should be compatible with mobile phones and tablets. Also include a way for future customers to get in touch with in the form of a chat button or a phone number.