May 21, 2020
We get asked the question all the time. What is a good conversion rate? Was that result a good conversion rate? What is the conversion rate benchmark? How does our conversion rate compare to others in the industry? The truth is this – it is a very subjective figure with so many variables! Here, we explore conversion rates and try to shed some light on the struggles of understanding a good conversion rate.
Firstly, what is a conversion rate?
In the context of this article, we are defining it as the percentage of users who take the action you want them to take. For example, if you’re running a promotional offer with a digital campaign, then your conversion rate is the percentage of users who made a purchase related to the campaign. If you are simply trying to increase the number of brochures downloaded from your website, then your conversion rate will be the percentage of people who downloaded the brochure after you guided them towards its landing page. Whatever the desired action (sale, form submission, landing page view, brochure download), then your conversion rate will be measured from that. So, it goes without saying, that your ‘goal’ needs to be defined in advance before you can even start measuring the conversion rate.
What qualifies as a good conversion rate?
The simple answer is that it varies! However, from our experience and from other research we can see that a conversion rate of 3% seems to be pretty good. Many people think “3%, that’s low!” but you do need to remember that an example of a promotional campaign might go something like this:
- Google Ads or Social Media Ads to drive traffic to promo landing page (shown to 500,000 people)
- Of those 500,000 people, you might have an average 3% click rate, so 15,000 people will show interest and visit your landing page
- 3% of the 15,000 will convert, meaning that 450 sales will take place
So, if I have a 3% conversion rate, does that mean I’m doing great?
A 3% conversion rate means that you are well within the average. So, you have nothing concerning to worry about. Although, there are loads of things you can do to try and improve this. After all, who wants to be average?
What can I do to improve my conversion rate?
That’s another subjective question, as after all, it depends on things like your industry, product or service, your target audience, your promotional offer and so much more. Generally speaking, though, landing pages are a great place to start for digital campaigns. If you can bring lots of visitors to your landing page, then you automatically have the opportunity to convert more people. There are always ways to keep people on site longer and direct them closer towards your goal.
For a detailed assessment of your conversion rate and recommendations for improvement, get in touch with us today.
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