Conversion rate is an important ecommerce metric that refers to the number of visitors to a website that complete a desired goal (a conversion) out of the total number of visitors.
Conversion rate is the number of people that take the desired action, divided by the total number of visitors to your website. It's not only the most crucial metric in eCommerce but also one of the most important metrics in marketing.
If you can improve your conversion rate, it will have a huge impact on your bottom line. To get started, read on to learn about some important statistics and what you can do to increase your conversion rate.
What is Conversion Rate?
If you want your marketing efforts to be as successful as possible, you need to focus on conversion rate. Conversion rate is the metric that indicates how many people take the desired action after visiting your site.
Conversion rates are important because they tell you what percentage of your audience took the desired action. If a company has a conversion rate of 10 percent, for example, that means 10 out of every 100 visitors will buy something from the business's website.
There are several factors that can influence conversion rates – some have to do with how relevant your ad was to the person viewing it and others have to do with the design of your website. In this article, we'll be exploring three important metrics: bounce rate, page views per session, and time on site.
Understanding the importance of conversion rates
As mentioned before, the conversion rate is one of the most important metrics in marketing. It determines your company's success and is a key indicator for eCommerce companies. So, what are the implications of conversion rates?
If you have a website that's not converting well, it can impact your business in a lot of different ways. For example, if you're unable to convert visitors into customers, your site won't generate any revenue. Consequently, if you don't make money from your site, you may start to lose clients or customers.
This can be seen as an indicator that something isn't right with the website. If you're having trouble with conversions, there are some simple changes you can make to help improve your site's performance.
For starters, ensure that you have a clear call-to-action on every page of your site that tells people what they should do next—whether that means purchasing a product or signing up for a newsletter.
Next, consider adding an additional step between clicking “buy now” and checking out. This may seem counterintuitive at first glance but this little extra step could mean all the difference when it comes to improving conversion rates!
The right way to calculate the conversion rate
The calculation for conversion rate is:
Visitors x Buyers = Conversion Rate
For example, if you get 100 visitors to your website and 5 of those visitors buy your product, then your conversion rate is 5%.
If you want to improve your conversion rate, there are a few things you can do. We'll cover four important tips you can implement today to increase your conversion rate and start seeing an impact on your bottom line.
Important statistics about conversion rates
Did you know that 63% of consumers will abandon a purchase if they don't find what they're looking for on the first page of search results? This is just one example of how important conversion rates are to your business.
Your conversion rate will depend on your industry and the type of product or service you offer, but generally speaking, a higher percentage is better:
- 2% – 3%: Poor
- 3% – 4%: Below average
- 4% – 5%: Average
- 5% – 6%: Good
- 6% – 7%: Excellent
- 7% 2 8%: Outstanding
How to increase your conversion rate
Understanding and analyzing the numbers and statistics in eCommerce is critical for success. Conversion rates are an important metric in marketing your products or services to customers.
To increase your conversion rate, you should:
- Identify the problems that may be lowering your conversion rate
- Identify what is working well on your website
- Create a plan to improve your metrics
- Analyze which of these solutions are best for you
- Communicate with team members to execute the plan.
Conversion rate is the percentage of people that take some action that you want them to take. For example, if you're running a marketing campaign, the conversion rate would be the percentage of people who bought your product.
This is a number that you need to know because it tells you how successful you are at convincing people to do what you want them to do. Your conversion rate is a crucial statistic that you need to track and keep an eye on.
The best way to calculate conversion rates is by dividing the total number of conversions by the total number of impressions.