An introduction to conversion rates
Whether you sell various products, or have another purpose for your visitors who enter your web site, the conversion rate (U.S. conversion rate) is a very important indicator. Important to the extent you often must return to it and actively work to improve aspects that can affect your conversion. If you do not know if and how your web site converts it may lead to forsaken revenues and inefficient traffic investment.
Simply stated, your conversion rate is the percentage of visitors to your web site that actions a predetermined goal. Do you have an online store the aim is obviously for your visitors to make a purchase. Do you provide services the goal might be for your visitors to register or provide their contact information.
If there is an actual visitor related goal on your web site you can measure your conversion rate. Once you know your main goal with your website it is easy to calculate your conversion rate.
Conversion rate = number of accomplished goals / number of visitors
An example:
You have 100 visitors to your site where you sell clothes pegs. 3 of them buy a set of pegs.
3 sets sold clothes pegs / 100 visitors = 3%
Your site converts 3% of visitors into buyers. How many more sets of clothes pegs do you sell if your conversion rate is 15%?
More advantages
To actively work with conversion and conversionrates does not mean that only your goals will be accomplished, but also other effects will join.
Lower media costs
Sponsored search results, banner advertising and competition in organic search results have recently become increasingly expensive when more and more people understand the inherent potential impact of these media. The importance of taking advantage of existing traffic has become far more important and conversion rates and conversion optimization can assist in solving this problem.
Clearer website
Conversion and conversion optimization focus on many areas of your site, which will influence usability and content. Both points are crucial to how your visitors perceive your site. A website that converts well is also a website which is easy to understand and use.
Cut customer acquisition costs
Once you have control over your costs and you know for certain how well your site and various types of traffic convert you can decide how much to pay for each customer acquisition. With control each new customer is an investor to join your customer base, regardless of traffic type.
Decision Support
With today’s advanced analytical tools conversion rates will give you invaluable insight into what kind of traffic and traffic sources that will work for you. It allows you to control when, where and how you want to be seen to maximize your earnings.
As you can see, there are many advantages when you achieve full control over your conversion rate, so continually work to improve it. Are you working with conversion rates and conversion optimization?