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Conversion Rate: what is it, how to calculate it and how to increase yours

Conversion Rate: what is it, how to calculate it and how to increase yours

If you are not satisfied with your conversion rate, what can you do to change that reality?

This is a common question among many entrepreneurs, especially in the digital environment, where there are many possibilities of counting using different metrics.

And when I talk about conversion rate, I do it by referring fully to a metric that is positioned as one of the most important of your marketing strategy.

And do you know what it can do for your business?

Stay here because I’m going to explain it to you in this article.

But first, I’m going to introduce you to the concept and some examples so you can better understand the impacts on your results.

You will also learn how to measure, how to calculate and how to increase the indicator until you reach the ideal conversion rate.

Embark on that journey and get ready for your business to take off with great power.

What is conversion rate?What is conversion rate

Conversion rate is a metric that helps the marketing team analyze the performance of an online campaign.

By means of this rate, it is possible to discover, if the actions are bringing the expected return on investment.

Likewise, it allows to identify the weak points of the strategy and to point out the aspects that must be corrected.

It is worth noting that, in this case, conversions are measured based on the number of potential visitors who performed a requested action on your website.

For example, buying a product, filling out a form, requesting a quote or any other objective of the page.

To make it clearer, I give you an example of conversion in practice.

Suppose your paid media ad was successful in attracting 100 new visitors to a specific page on your site, and one of them bought the product.

This means saying that 1% accepted the invitation to purchase.

Little bit? Much?

I will deal with that analysis shortly.

Before, it is important to know why the results should be measured.

Why measure the conversion rate?Why measure conversion rate

Now that you know what a conversion rate is, it will be easier to understand the reason for calculating such a rate.

It is essential to know what percentage of your visitors is responding to the established objectives.

This allows you to know how users interact with your site, evaluate their performance or that of a certain campaign and identify the aspects that need to be improved.

Another benefit of this analysis is that, through it, you recognize how you can help visitors progress through the sales funnel.

In addition, there is the so-called transition for conversions, the identification of which can be more profitable than trying to attract new people to your site.

But I will go a little further.

Unlike SEO optimization, which can take some time to take effect, actions aimed at optimizing your conversion rate generate immediate results, while the necessary adjustments are made.

Obviously, measuring your conversion rate doesn’t have to be done just once.

Regularly monitoring visitor behavior and the implementation of modifications on your site (or any other channel) is essential to obtain sustainable growth, with short and long-term results.

How to calculate the conversion rate?How to calculate the conversion rate

As I mentioned, a conversion is any event that you consider to be an objective of the site, blog, campaign or marketing and sales action.

Even for most e-commerce sites, this will be a sale.

For others, the conversion may be the act of filling out a form, subscribing to a newsletter, downloading an e-book, or clicking a specific link.

Everything will depend on your business.

The most used formula to calculate the conversion rate considers the total number of conversions.

This is then divided by the number of visits during a certain period of time.

Notice:

  • Conversion rate = conversions / visitors x 100

For example, let’s assume that you have an e-commerce and that you managed to make 100 sales in a week, after generating 2,000 visits to your site.

Considering that formula, your conversion rate would be 5%.

That is: TC = 100/2000 x 100 = 5%.

It is worth remembering that the real purpose of calculating said rate is to have a basis so that, over time, its variation can be tracked and recorded.

What is considered a good conversion rate?What is considered a good conversion rate

You might be wondering: how do I know if my conversion rate is good or not?

The only possible answer to this question may not give you much encouragement.

A good conversion rate is one whose measurement is higher than the one you obtained in the previous period.

As simple as that!

There is no minimum number or percentage considered acceptable.

The conversion rate varies according to various factors of the market in which your company operates.

Therefore, it is difficult to define an exact index as the ideal rate.

Additionally, sites have different sources and volume of traffic, as well as different perceptions of the brand and relationships with their audience.

For example, an e-commerce of varied products, probably has a lower conversion rate than an online tire store.

Why?

Because niche segmentation helps to attract a certain audience that is directly interested in the solution you offer.

In practice, the visitor reaches the site more likely to make the purchase.

So, look for the best possible conversion rate and focus on raising the index with each new analysis.

Don’t worry so much about what would theoretically be a good conversion rate.

Work to improve the one you have.

How to increase the conversion rateHow to increase the conversion rate

Have you heard about CRO?

The acronym corresponds to the English term Conversion Rate Optimization.

Its free translation into Spanish is Conversion Rate Optimization.

In other words, CRO is the process of optimizing your search ads, your landing pages, and your site design.

All of this is aimed at increasing your conversion rate.

Is that the indices change depending on your business, as I explained.

On the other hand, other than that, everyone wants to be the best, right?

Therefore, the CRO is considered a way to increase sales profits, without increasing you’re spending with advertising.

In this context, it is time to roll up your sleeves, put your hands in the dough and discover how to increase the conversion rate of your business.

A / B test

Basically, the idea of A / B testing is to run two variations of something. For example, of a site, a landing page, a Call to Action or some other aspect that needs to be measured.

For this purpose, it takes into account a controlled group of customers to see which version was the one that had the most acceptance.

In the past, testing magazine or banner ads, for example, was impractical due to high costs.

However, in digital marketing, the costs are lower.

When the tests are run correctly, their results provide a clear insight into visitor behavior, which can significantly help conversion rates.

A / B testing is a scientific marketing methodology.

Therefore, it eliminates the assumptions, identifying small differences that can influence user behavior.

The rule is clear: if it is an item subject to change, you can test it.

But that doesn’t mean you have to spend months testing all the small elements.

Focus on what makes the most impact, such as:

  • Titles
  • Call to action (CTA) localization, text and layouts
  • Image versus videos
  • Layout of the page.

Running an A / B test

How does an A / B test work in practice?

First of all, you have to think about all the metrics of your business and how to define what really represents an indicator of success in your marketing campaigns.

Is it the number of sales? From downloads?

Whatever it is, everything will depend on the objectives that each business sets out to meet.

With that starting point, you can select two variables from your campaign to run the test.

Be very calm.

To measure which is the best, run the tests simultaneously, under identical circumstances, and select the most successful version to use.

For example, if you are testing your site’s landing page, use the current version with images as a control element.

Set up a second version with video for testing and divide the traffic evenly between the two.

Now, in an email marketing, you can try different types of offers, such as a gift to group a, and a discount to group B.

The important thing is that the two groups are identical, or as similar as possible to obtain accurate data.

Also, you can test the elements as a whole.

For example, you may want newsletter A with landing page A and newsletter B with landing page B.

And then later on you can test newsletter A with landing page B and vice versa.

Thus, you will be able to identify which of them converts the most.

Analyzing the A / B test

Last but not least, you must determine how long you are going to run the test and how many responses you need to quantify the results.

Remember that A / B testing does not happen overnight.

Depending on the amount of traffic you receive, the trial can last a few days, or even weeks.

It is possible that a test performed in a short time will bring distorted results.

Well, you don’t have a large enough group of visitors to be statistically accurate.

On the other hand, running a test for a long time can also give negative results.

In that case, other factors may interfere with the data for a longer period.

Therefore, make sure you are always attentive to any details that may affect your results.

That way, you will be able to understand any abnormal statistics when reviewing your analysis.

Of course, if you have doubts, do not hesitate to try again.

Causes a sense of urgency

Psychologically influencing your visitors, awakening the desire for immediate action before it’s too late, is a widely used way to increase the conversion rate.

We humans are pressured to act in the midst of urgent situations, either to prolong positive emotions, or to diminish negative ones.

Second, the sense of urgency creates the impression that we are not aware of what is happening.

This is accentuated when many people pursue the same opportunity.

However, there is an even more important factor: the product or service must be useful and add value to the visitor.

If people don’t want what you offer, they will hardly convert.

The loading time of your pagesHow to increase the conversion rate

According to surveys, 47% of internet users expect a site to load in 2 seconds.

About 40% abandon it, if it exceeds 3 seconds.

In addition, 79% of Internet users who had a bad experience with the performance of a site, hardly return.

It is clear like this, how the loading time of your pages can affect your conversion rate.

One way to solve the problem is to invest in a responsive design, that is, that adapts your site to display on all screen sizes.

Another recommendation is that you pay attention to the number of images, videos, banners and other elements that may intervene in the loading time of the page.

Listen to your customers

It is useless to plan strategies based on reaching your audience, if you do not create channels to establish bilateral communication with them.

An audience satisfied with your company is a determining factor in obtaining a good conversion rate.

Here’s a tip: Keep your profile active on the social networks that your customers use most frequently.

Through comments and messages, you will be able to have a better idea of ​​what the public thinks of your business.

Even, you will have more chances to communicate in a more direct and humanized way.

All of this strengthens your relationships with the audience, which is excellent.

Since no one better than the public to evaluate the performance of your product or service, right?

That being the case, give each customer due attention.

You are going to be surprised with the number of aspects that can be identified and improved, when you listen to what customers express.

Monitor your resultsHow to increase the conversion rate

To optimize conversion rates, you need to know where, how, and what to optimize.

If you don’t collect or analyze the data, you make changes based on guesswork. This means wasting time and money.

So my suggestion is that you analyze the data in two ways: qualitative and quantitative.

I explain you better.

Quantitative analysis

This method provides hard numbers on how people actually behave on your site.

It is able to offer answers to important questions, such as:

  • Which page on your site do they get to first?
  • Which channel or link led you to it?
  • What devices and browsers do they use?
  • Who are your clients (age, demographic and interest data)?
  • In which space do users usually leave your website?

Qualitative analysis

With quantitative analysis, you get to know how users interact on your site.

With qualitative analysis, you discover the reason for their behavior.

The method is people-centered, and therefore more subjective.

For example, it is carried out by satisfaction surveys and data collection.

However, it provides valuable information about users, such as:

  • Why did they decide to visit your site or browse a specific page?
  • What caught your attention on the page or on the product?
  • What is different about your site compared to the competition?
  • How do they describe your product or service to a friend?

There are certain things that raw data alone cannot explain what brought a user to your site or how to improve their experience.

But when you combine that information with your analytics data, it is possible to have a broader understanding of that matter.

Therefore, there will be better opportunities to optimize and persuade the audience you want to segment.

Start capturing leads with Klickpages todayStart capturing leads with Klickpages today

Who still does not use a site or blog to capture leads, is missing a huge opportunity for your business to grow.

With these two resources, it is possible to converse with your client through articles or when presenting promotions.

On those occasions, you can promote more productive relationships.

It is very important to do your best to create your landing page, as it increases the chances of confirming the conversions you want so much.

And best of all, the Klickpages tool is ideal to help you fulfill that mission.

Take a look at the three essential steps and follow them:

  1. Choose your model: know the high conversion alternatives proven by tests.
  2. Customize the page: edit the texts, colors and images, as well as hide the elements that are not useful.
  3. Publish: finally, you only need to publish your own domain, without additional hosting costs.

Did you see how I make things easier for you?

ConclusionConversion Rate Conclusion

It is truly unfeasible to be successful in a marketing strategy, without measuring the conversion rate of your actions on the web.

The information that said metric generates allows you to propose or modify your strategic planning, according to the data disclosed.

Without it, you can create the false impression of good results, which is dangerous for the continuity of any business.

The good news, as you saw in this article, is that there are a number of tools that make it possible to measure, analyze, and increase your conversion rate.

So what are you waiting for to improve your actions, attract visitors, capture leads and invoice more in your campaigns?

Remember that you have Klickpages to find the perfect recipe when creating your landing pages.

See you very soon and I hope I have helped you with the content of this article!