The conversion rate is a crucial KPI not only for your PPC campaigns but also for your website and landing page performance. Here's all the information you need about this KPI, what it is, why it's important, how to calculate it, and way more!
The conversion rate is the proportion of people who did the desired action among your total number of visitors over a specific time period or amount of time. This is a good metric for lead generation, to calculate profitability and could be tracked on your Google Ads, emails, landing pages (or homepage), eCommerce site, and anywhere else where you've set a business goal to either buy, start a trial, subscribe to something, or convert into a paying customer.
You don't need a conversion rate calculator! To calculate it, you simply take the total number of conversions and divide it by the number of website visitors (not to confuse it with the number of sessions). You can track the conversion rate of your whole website, for each web page, or the marketing campaign conversion rate of your AdWords or Facebook ads.
It all depends on your industry, different industry have significantly different benchmarks. The average conversion rate ranges from 3% (apparel, electronics, hobbies) to 8% (automobile, law & government) So more than 10% is definitely a higher conversion rate than average.
Below 2% to 3% is a pretty low conversion rate, again this depends on your industry benchmark, but if you have a 1% average page conversion rate, you can safely assume it's low and you should concentrate on conversion rate optimization (CRO). Maybe change your call to action (CTA) modify the user experience to increase conversion or simply rethink your marketing efforts.
Your average conversion rate can be added to multiple different types of reports.
Ecommerce report template
A report with all the most important metrics for your ecommerce site, like shopping cart abandonment, click-through rate (CTR), and of course your ecommerce conversion rate.
Digital marketing report template
From SEO to social media and PPC, this report gives you a good view of all your online marketing strategy metrics and overall conversion rate.
Google analytics report template
Simply plug your conversion goals (and even your data from Google Ads), and track a specific conversion rate, webpage new customers, conversion tracking, and way more.
There are a couple of things to keep in mind when tracking your conversion rate:
Track it alongside other metrics
A 50% conversion rate sounds amazing, right? But if you only got 2 visits from potential customers, that's just 1 conversion, which might not be such a great result after all. By tracking your conversion rate alongside traffic and the number of conversions, you'll have a better idea of your performance.
Conversion optimization
To maximize your return on investment, make sure you optimize your conversion rate as much as possible. Gaining even 1% on all your pages or ads can mean a whole lot more revenue in your pockets. Don't forget to take into consideration the mobile devices or your mobile app as well.
Do a/b testing
Optimization comes hand in hand with a/b testing. You might think that your conversions are going to improve after a change in your CTA, but bottom line, you might hurt your conversions without knowing.
Although conversion rate is widely used, there are multiple synonyms that can be used. Here are a few :
Conv. rate, Conversion %, Conv. %, Goal conversion rate, Conversion ratio, Conversion / visits, Conversion / session, Conversion / click, Conversion per session, Goal completion rate, Goal rate, Website conversion rate, Campaign conversion rate, Ad conversion rate, Marketing conversion rate, Action rate, Transaction rate, Average conversion rate, Ecommerce conversion rate, Overall conversion rate
