I’m sure you have heard of “Conversion Rate” right? Let me break it down for you! It is a very important metric something all business owners want to increase and keep an eye on.
If you would like to understand more follow this article.
What the “heck” is Conversion Rate?
According to Oxford Dictionary, Conversion Rate means the process of changing or causing something to change from one form to another, like your website visitors into a long term relationship
So how does this work for an online store? Well, the aim is to convert each visitor to your site into a buying customer. For some businesses, it could be turning visitors into subscribers, downloading a guide, or even just signing up to be apart of the newsletters to get alert about new offers and deals or stock.
How to measure Conversion Rate for your Small business?
The calculation is done based on the number of visitors that purchased from your online store within a certain time frame. Let’s take this example, 1000 visitors came to your store for 1 month and only 20 of them actually made a purchase, your conversion rate would be 2.5%.
So for an eCommerce business owner the conversion rate would represent how well the brand has been able to transform its traffic/visitors into trusting paying customers.
Different Industries Conversion Rates May Mary.
Take a look at the different industries’ Conversion Rates. In this case in the furniture industry customers are more likely to want to have a physical touch and look of the item before making a payment. It is also different for the tourism industry as people browse online and compare prices before they actually buy so because of that, that industry has a lower than average Conversion Rate.
On the other hand, the food and beverage industries will see a higher Conversion Rate because people are more sure of what they want to eat and drink and wouldn’t spend too much time making a comparison before they order.
That wasn’t so bad to understand right? Your doing better than you thought :-)
Based on research, it is said that the average Conversion Rates for e-commerce averages between 1-2%.
As important as the Conversion Rate is, you need to understand that it is a ratio and not because you have a higher Conversion Rate doesn’t necessarily mean your revenue is higher, it could be that you have fewer visitors.
Google Analytics is used to measure conversions also gives a wide range of data like how the visitors found your website, how long they were on your website for, their location, whether they are new visitors or return. This data is very helpful in understanding your customers and implementing any changes that will help to better your conversion.
Getting the Most of Conversion Rate
Well, it is easy to say that having a high Conversion Rate shows that your website has been doing a great job with converting your visitors into buyers. While with it being low is telling you that there is room for improvement.
Conversion Rate Optimization is the process of improving the shopping experience for the customers on your website to increase your sales.
You want to spend sometime to learn your visitors habits to see what they are interested in and where seems challenging for them.
Take a peek: Here are the Top 5 Ways To Increase Conversions Without Spending Any Money
Make a Conversion Rate Optimization plan for your online business. Set a strategical Conversion Rate goal at around 2% and figure out when to use them to get desired results. Ensure you track your data, revenue as you implement, and watch your business grow.
Conversion Rate is one of the most important metrics that you should continuously look out for as you build and grow your business.