I recently met with the e-commerce team from a CPG/Manufacturing company. We had a great conversation about driving sales online and it got my marketing juices flowing. Recently, I wrote an article about measuring ROI for marketing and it included discussing Website Conversion Rates…
By monitoring your conversion rates, you’ll know how well you’ve been capitalizing on the traffic coming to your site. You can monitor several different types of conversion rates, including:
- Visitor-to-Lead Conversion Rate: the percentage of visitors who become leads through regular site visits, requesting a price quote, downloading content or repeatedly attending webinars
- Lead-to-Customer Conversion Rate: the percentage of leads who become customers
- Visitor-to-Customer Conversion Rate: the percentage of visitors who become customers
Tracking each of these conversion rates is like giving your marketing funnel a checkup. You’ll see where you’re doing well (such as converting visitors into leads) and aspects of the website that need improvement. Most important, you are measuring metrics that ultimately can impact revenue generation.
You can track the percentage of visitors who arrived at your site through organic search and completed a desired conversion action, such as filling out a contact form, requesting a price quote or registering to receive the company’s enewsletter.
But you also should dig deeper into your web analytics to track conversion rates by:
- Specific keyword or search phrases
- Unique landing pages
- Referring URLs
Tracking these metrics helps you fine tune your SEO strategy. For example, you may discover certain search phrases that don’t deliver tons of unique visitors, but that have a higher than average conversion rate. Or, you may find that high traffic from a common search term isn’t translating into a good conversion rate. So, you are not only looking at quantity, but quality.
After my conversation with the team, I decided to expand on this topic by providing ways to dive deeper. There is a lot of useful information published that can help you make sense of how your specific data may compare to others – both inside your industry and out.
First, it occurred to me conversion rates still may be a bit foreign to some. I found this waaaay oversimplified explanation that gave me a chuckle…
“Well … it’s the number of people who did what you wanted them to do … divided by the total number of people you tried to get to do that thing.”
Perhaps a little basic in the explanation, but you certainly get the point.
Leadpages went on to provide in their article, What Is a Good Conversion Rate? (And When Can I Stop Worrying About Mine?), helpful examples of the basics. They also made it clear, “it depends” when it comes to what you are counting as a conversion (and what industry you are in, and what you are trying to convert, etc.).
Speaking of segmenting by industry, Smart Insights earlier this year gave a report on comparing average conversion rates for retail sites and other industry sectors. In it, they provide a fascinating overview of conversion rates, breaking it down by geography (global, US, UK), device (desktop, smartphone, tablet), platform (Apple, Android, etc.), channel (Google, Facebook, Bing, etc.), and more. You will be surprised who ranked first in the channel category. Hint… they are not listed above.
In HubSpot’s 2017 Ultimate List of Marketing Statistics, there is excellent data you can use to help guide your own conversion rate marketing strategy. In the article, HubSpot shared:
- Only about 22% of businesses are satisfied with their conversion rates
- The first position on Google search results on desktop has a 34.36% clickthrough rate
- The first position on Google search results on mobile has a 31.35% clickthrough rate
- For every $92 spent acquiring customers, only $1 is spent converting them
In addition to conversion rate statistics, you will find several other interesting results such as:
- More Google searches take place on mobile devices than on computers in 10 countries including the U.S. and Japan
- B2B researchers do 12 searches on average prior to engaging on a specific brand’s site
- 72% of marketers say relevant content creation was the most effective SEO tactic
- 44% of people go directly to Amazon to start their product searches, compared to 34% who use search engines like Google, Bing, and Yahoo to search for products
As you can see, there is plenty of information published online to help you make sense of your data. The bottom line is… if you haven’t started tracking your conversion rates, it is time to start. Ultimately, there are many factors that go into what motivates YOUR target. It is up to you to determine what is best for your specific scenario.
Rick Verbanas has brought his passion for marketing to Fortune 500 companies, small businesses and not-for-profits. He strives to stay current in the latest marketing best practices, and provides a weekly roundup for your news and enjoyment. To subscribe to future blogs, please enter your email address on the left hand side of the page.