If you wish to expand your business and take things up a notch with digital marketing, keeping track of your marketing campaign conversions is an excellent way of doing so. It can boost your content marketing’s effectiveness, refine your marketing strategies, and better determine the behavior of shopping cart abandoners from a Facebook ad campaign.
With the correct conversion tracking tools and web analytics like Google Analytics, you can easily convert a considerable number of your site visitors into customers. It is well understood for business owners to be concerned about their bottom line. A higher conversion rate (CR) indicates spending less money on your marketing efforts while winning over more customers.
Hence, it is crucial to understand what is CR in digital marketing, how it can be calculated, and identify some of the most effective ways to improve it. Fortunately, you can resort to several methods to improve your conversion rate and boost your profits, which will be briefly covered in this guide.
What Is A Conversion Rate?
Conversion rate is a measure of the number of users who’ve converted as a percentage of the total number of users who’ve visited your website. When you have a high conversion rate, it indicates your content is quite effective.
In terms of marketing, conversions refer to the moment users start responding to a “call to action.” This might denote any of the following:
- Purchasing a product
- Filling out a registration form on your site
- Opening an email sent by you
- Signing up for a giveaway
When site visitors convert, they end up in your customer relationship management (CRM) system. This ultimately allows you to target your customers and reach out to them more effectively as they dig through the marketing funnel.
Moreover, since each conversion takes a person a step closer to becoming a customer, you would want your public-facing content and marketing efforts to be effective enough to generate as many customers as possible.
How to Calculate Your Conversion Rate
Learning how to calculate conversion rates in digital marketing is relatively simple. It only requires taking the number of users who have interacted with a particular content piece, such as a website page or an email, and dividing the number of conversions by that total. The total number you divide by depends on the type of content you aim to find the CR for.
For instance, suppose you have just broadcasted an email campaign announcing the upcoming launch of your new product to 5,000 customers who have purchased something from you earlier. Over these 5,000 recipients, 200 customers clicked through to register for pre-orders. Your online conversion rate on that particular email is 200 divided by 5,000, which equals 4%.
What is a Good Conversion Rate?
Conversion rate defines the efficacy of your public-facing content. A “good” site conversion rate typically ranges between 2-5% across all industries. So, if 5% of your site visitors sign up for your mailing list or buy a product, your site is 5% effective, which is quite good.
However, industry-specific CRs tend to vary slightly more. Specific industries like industrial equipment have quite low-performing sites or apps. In contrast, companies that provide business services or sell electronics have higher average CRs.
How to Improve your Conversion Rate
Conversion Rate Optimization (CRO) refers to detecting conversion objectives, calculating their CRs (CR in digital marketing), and optimizing your mobile application or website to boost conversion rates.
CRO is done by generating hypotheses as to why visitors are not converting and bringing forth ideas for increasing conversions, then testing those ideas through A/B testing, a process in which 2 versions of a page are tested simultaneously against each other to observe which of the two is performing better.
You can constantly boost your app or website’s performance by recurrently identifying new conversion objectives, detecting areas where CR can be further improved, and employing tests of novel features.
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