What is the Conversion Rate? How to calculate and improve your online store
Conversion rate is one of the best ways to measure the performance of your advertising campaigns. Given the importance of this topic, we will recognize in this article God willing: What is Conversion Rate? How to calculate and improve your online store.
Unlike the BPR or cost per click, the conversion rate describes how good and impactful your ad is to the recipient and is here the target customer to do what is expected of it. In general, the higher the conversion rate, the better your marketing campaign!
What is the Conversion Rate?
Simply put, the conversion rate is the percentage of visitors to your website or the ad's target page that viewers have accessed after viewing your ad (simpler - doing what you like) on the number of views of your ad, for example, if your ad watches 100 people and enters your site 10 people, the conversion rate is 10% (dividing ten by one hundred).
"Conversion" may happen to anything, but here are some common types of conversion:
Procurement
Fill out a form (contact us, main customer form, etc.)
View Your Business
Communicate and enter a conversation with you online
Sign up for something, whether paid or free like newsletter services.
Register on the site.
Download something (software experience, download e-book, phone application, etc.)
Use something (new advanced feature on your software or app, recognise the ease of using your software/apps for a certain period)
Deal with the site in some way (time spent on site, frequent visits, number of pages visited)
There are lots of other conversion actions that customers can take on a site, this would give you an idea of what "conversion" means. Conversion is a measurable measure aimed at transforming potential customers into more effective clients to carry out the expected tasks.
How is the conversion rate calculated?
Calculating the conversion rate is fairly easy, all you have to do is divide the number of transfers you get within a given time frame by the total number of people who visited your site or the target page and multiplied it by 100%.
Conversion rate = (remittances/total visitors) × 100%
For example, if the number of hits on your site is 17,492 visitors and you got 2,305 transfers in the last month, the conversion rate in your advertising campaign is 13.18%. The calculation is easy, is that true? In fact, if you set up a platform or tracking method, most online ads (such as Google ads, and Facebook ads) and analysis platforms (such as Google Analytics) can actually show you the conversion rate in these platforms.
One of the great things about conversion rate is that this metric can be as specific or as wide as you like, here are some different types of conversion rates that you can use and the ways in which this data can be used to examine performance:
General conversion rate (how successful is the conversion of visitors from a site to your website?)
Marketing channel conversion rate (are visitors likely to switch to visit my site through Google and Facebook ads?)
Page-level conversion rate (what are the best pages for converting visitors' traffic?)
Campaign conversion rate (Have your changes to targeting improved anything?)
Individual conversion rate (do I need to change my ad? Does this ad attract more targeted customers?)
Keyword conversion rate (what keywords are worth paying more budget?)
Clearly, the previous list of different types of conversion rates is a preliminary list, as the conversion rate is a great measure to assess the performance of any aspect of online marketing. Increasing clicks on your ad or link is a great goal, but if these clicks don't lead to something useful for your business, you should review your ad campaign.
Conversion rate or click conversion rate
You might think that so, "What if the same person is moving from one location to another as I want a few times?" How does this affect my conversion rate? "Is this calculated by one or several transfers?"
All of the above are great questions. To solve the problem of the total number of transfers versus the actual number of different visitors, marketers use different terms to describe each case.
As mentioned earlier, the conversion rate is the number of transfers divided by the number of visitors. In order to know the percentage of visitors that have been converted (regardless of the number of times the same visitor has been implemented), the number of visitors is divided into the total visitors and then multiplied by 100%. This process is called the "conversion rate of clicks."
Click Conversion Rate = (Number of Visitors/Total Visitors) × 100%
For many advertising and marketing campaigns, the conversion rate is almost identical to the conversion rate by clicking, so we'll focus on the conversion rate in this article. A click conversion rate can be helpful in cases where your ad gets a lot of frequent conversions and you want to see the percentage of real visitors without a repeat.
Access to useful data
One of the things we consider when calculating the conversion rate is the quality of the data, for example, you may see campaigns or pages that have achieved a 100% conversion rate, which seems great but if you see the details you will realize that there is only one visitor.
If visits to your ad or page are not too large, it is difficult to trust the result of the conversion rate you receive. If the 5% turnaround rate of 20 people has visited your site and one of these 20 has entered by accident, does your ad or page work very well? The answer may be no because this ratio indicates that only one entered the site or page and this entry by accident is only.
On the other hand, if the turnaround rate is 5% from 10,000 people and of these 5 people have implemented what you want by accident (not thanks to advertising), your conversion rate will drop from 5% to 4.95%. But even with this decline, the ratio is still fairly good.
Each source of the visits you receive carries a certain number of different sources (transfers by accident, people who wanted to enter the page or follow what you wanted but did not, random periods with high or low conversion rates, etc.) The only effective way to rely on your conversion rate is to use and measure the conversion rate over a long period of time.
Of course, like most other concepts associated with the conversion rate, there is no "fixed" time frame for all businesses and campaigns. Many shoppers prefer to use a "month" as a schedule, but if you own a huge site like Walmart, the process may only require a day to obtain meaningful data. If you get a few hundred visits during the month, you may need six months to get useful information regarding your conversion rate.
What is a good conversion rate?
The conversion rate varies considerably depending on the quality of visits, industry, business, what you shop for and even the specific transfer procedures you follow. So, when you get extensive statistics on your conversion rate (this study was conducted by Unbounce), these statistics that you might consider good for you will be specific to your business and marketing campaign only and ineffective for another campaign.
In addition, it is important to remember that a high conversion rate does not mean a high product purchase rate. That is, while we talk about the importance and usefulness of the conversion rate, the goal of most marketing is not to produce a high conversion rate - but to produce high sales.
For example, let's imagine that you are one of the partners in a law firm with an average income of $3,500 per new customer, with a profit margin of 50%. You run five marketing campaigns where the conversion required the viewer to the marketing campaign to fill out a form and send it to your page.
Here are your campaign results:
The third and fourth campaign has the lowest conversion rates, which means they need some work. But none of these data gives us any clear look at how much profit these campaigns have made. Do these potential customers turn out to be real customers causing higher profits? We can't tell.
To answer this question, let's take a look at the ROI of your marketing campaigns:
It is clear what is the most profitable campaign. Campaign 1 was with the best conversion rate, but was much lower in terms of profit than Campaign 4. Campaign 4 is the most lucrative campaign, every dollar I've invested in this campaign has earned a return of $7.52.
Which campaign looks better now?
As you can see, the data you get from the conversion rate is great data, but it still doesn't show the full reality. Even a "good" conversion rate could be bad for business if you can't translate these transfers into sales!
Tracking conversion rate
That conversion rate may not be the ultimate measure of your advertising campaign success, but it will remain a great performance tracking tool, but, to calculate your conversion rate, you should track what happens after conversions, and as we mentioned before, with a little extra effort, you can track transfers directly within most advertising and analytics platforms.
The transfer tracking process is easier if you have a good developer, but be convinced that good tracking of the customer conversion process is worth the effort, you can't improve bad results if you don't track why your online marketing results are low, how will you know what is good and what is negative in your marketing campaign?
Tracking and using the conversion rate correctly makes you an online marketer, which can make you one of the best competitors for those in the same field. Through the Google tracking system "Disruptive Advertising," a popular foreign website has reviewed more than 2,000 accounts in "Google Ads" and found that 42% of these ads do not track transfers.
Can you say you have a "golden chance"?
Of the 58% who advertise through Google Ads and who track transfers, only half track well for conversion.
If they do not track well the customer conversion process, they cannot make a profit from marketing campaigns. But if you follow the conversions, you can find out the weaknesses and strengthen them to make the most of this campaign!
Hubspot's report indicates that 97% of marketing campaigns that are not tracked fail, so if you track transfers and use the data you get effectively, and in return, none of your competitors did this thing, who would be better than you?
Improved Conversion Rate
Knowing the conversion rate and how to track it is important, but what do you do with the conversion rate data? More importantly, how do you improve your conversion rate?
Improving the conversion rate is improving and developing your internet page to increase the number of visits to this page via conversions! Can you know why improving the conversion rate is an important part of your online marketing strategy? If you can't improve the conversion rate, you're just wasting money.
Test your website
How do you know why so many viewers of the advertising campaign are lost? It's not hard, here are some ways to start improving your campaign's conversion rate:
Create a dedicated page
If you are using any type of paid advertising you should send potential customers to a dedicated page for what you are marketing landing page ", also called the landing pages there are a lot of important reasons for doing so, But the most important reason is to optimize page usage and improve conversion rate If you're going to pay to increase visits to your site, you want to send customers to a specially designed page for potential customers.
Specially designed pages are the easiest type of pages you can improve the rate of conversions on. So, if you're still your customers to a working homepage, this is the first job you're going to start.
2. Create a premise
All conversion rate improvement tests begin with imposition processes. But to apply your hypothesis, you should expect some elements that will have the greatest impact on your conversion rate and your profit.
Here are some items you should first know:
If your title is strong, you will sell aggressively, and 80% of your marketing viewers will only see the campaign title, so you need to be careful to choose an attractive and powerful title for your advertising campaign.
How to view the campaign: The target audience of your ad campaign doesn't think the same as your style, so they don't always respond as you imagine, try different campaign descriptions and designs to see how interactive it is and what's best to attract your potential customers.
Call to action as with the campaign presentation method, you should invite your audience to take action about your ad and you may need to take several tests to find out what motivates the audience to take the action required, you should try different phrases and multiple designs to invite viewers to take action.
Visual Media: Sometimes photos or videos when you add them to your marketing campaign can make a difference, and experiences have proven that video advertising gives excellent results.
When you make potential hypotheses for your audience, design two pages with two different designs to evaluate, all you need to do is take a test to evaluate which pages are better!
2.A/B test
The easiest way to start testing your hypotheses is to test A/BK If you have different campaigns views, there are several great tests based on a lot of variables that give you very accurate results, but these tests are complicated, for most marketing campaigns the A/B test is the easiest and most effective method.
To take the A/B test, all you have to do is put two different page options and divide the potential audience between them, half your audience is watching Campaign A and half is watching Option B and see feedback on the two options.
To divide the audience, you will need the help of conversion rate improvement simulation software, if you actually aspire to improve the conversion rate, there are some great ways, even if it is expensive to take the A/B test but you will achieve impressive results, but if you have recently started and have no experience in this area, here are some less expensive options:
Google Optimize: This tool is free, provided by Google if you don't have enough experience to handle it see some explanations here > >
Unbounce: If you just need to test A/B for one of the specific pages, this is the perfect option for you. Unbounce is a powerful and user-friendly system that allows you to quickly create and test a variety of pages.
Optimizely: This is a more expensive option than Google, but it includes some extras that provide additional results on improving the conversion rate for customers.
Visual Website Optimizer: This method is slightly cheaper than its predecessor and is easy to use and apply, so it is one of the favourite conversion rate optimization platforms in many destinations.
Each of the previous methods will allow you to test different updates to your website or page, thus making the process of knowing the best page easier.
Visitor intensity test
In addition to testing your website, an additional great way to improve the conversion rate is to test the intensity of visitors. If most visitors to your site or page arrive through Google search results, testing the intensity of visitors is not important to you. If you work through marketing campaigns and control the quality of people visiting your site, you must inevitably take this test.
This test is very important, if you own a perfect page and get an audience that is not suitable for your marketing campaign it will not yield the required results.
How do you make sure you send the right visits to your page? Here are four things you need to consider.
Start properly.
Before you start working on creating an ad or page dedicated to receiving visitors, you first have to take the time to do some studies about your audience.
These are some of the matters to be considered:
Have you ever advertised in this area? What worked in your previous campaign? What have you not done?
If you are targeting a new audience for you, chat with some people from this audience, go beyond previous ideas and present new ideas to these people, and always remember what works for you may not suit your audience.
What is the best way to target your audience? Are there certain keywords you use in your campaign? Are you familiar with certain social media interests? Does this audience have a certain income level, prefer costumes or anything else you can use to target the audience?
Once you've finished these details, use them to build your targeting strategy. A little thought can help you avoid wasting too much money.
2. Make comfort for your audience
Ollie Gardner always says, "You have to keep the rest." In other words, the content of the material you market for should correspond to the page on which it is displayed.
Conversely, if you want to market a particular product or offer it to a particular audience, your ad needs to link the needs and interests of your target audience to what they'll find on the page.
Your campaign should be well worded so that only people who want to go to this page click on your ad, and when they browse your site, they should immediately feel in the right place.
3. Create more pages.
If we want to expand on the previous point, it is acceptable to have different marketing materials and special pages for each shopping item that fits the audience and what they are looking for. Remember that everyone has a different reason to come to your page, and each person will interact on your page in different ways than the other, so the more you can make your advertising increase for different products and multiple pages, the more you get more customers.
There are several ways to create targeted ads depending on what you want to market and the target audience and the most important ones: are advertising groups (SKAGs) for pay-per-click services on advertising, social media targeting options, YouTube interests, etc. Remember that the higher your ads and dedicated pages, the better the conversion rate.
4. Pay for successful advertising
Finally, when sources of visits with the lowest conversion rates (not-for-profit) either change something or stop spending money on this source of visits, you don't have to keep investing in visits to the wrong audience!
Alternatively, set a test budget to explore new visitors or boost the targeting process and focus on spending your budget on beneficial visitors.
Since you're trying to guide and select your ad for the most appropriate audience, you have to start with A/B tests to choose your audience, if you get the right audience, make sure you make the expected profit.
Conclusion
Conversion Rate is one of the most important measures of online marketing, unlike the tap-to-ad ratio, the conversion rate tells you what percentage of visitor density you get for your page or site, you can pay to get a large number of clicks on your ad, but these clicks will be useless if the audience doesn't do what you want.
Now that you know the conversion rate, how to use it, and how to improve the conversion rate, it's time to put your conversion rate data!.
If you want to select conversion tracking or optimize the conversion rate, tell us here in the comments so we can help you.
What do you think of the conversion rate? Do you think it's a useful measure? Can you add any tips to this article? Leave your comment for the benefit!.