Conversion rate is a percentage of website users who have performed a desirable action. Based on the goal and industry, it may be a download, newsletter signup, a completed form, or something else entirely.
The conversion rate can be calculated by dividing the number of visitors who converted by total website visitors.
Conversion rate is an important metric in advertisement since it helps you to understand how well your ads and marketing strategies overall are performing. If you spend too much budget on ads but get nothing more than page views, you might need to reconsider everything. Otherwise, you might go bankrupt pretty soon.
A perfect conversion rate does not exist though. It differs from industry to industry, from brand to brand.
You can boost your conversion rate by:
- testing different creatives, landing pages, messages, channels, headlines. However, test one hypothesis at a time
- using simple language with a clear message
- increasing trust through customer reviews and a good return policy
- placing CTAs and internal links to guide the visitor to conversion
- making the conversion easy: reduce the number of form fields, allow them to autofill them, let them checkout as guests, offer fewer recommendations rather than thousands of options
- offering discounts and playing with FOMO by placing a time bar on it
- communicating what makes you different from your competitors
