A conversion rate is an essential key performance indicator(KPI) for marketers, sales representatives, and business professionals. It is one of the most common metrics used because marketers can use it to track engagements, events, and other key components in the sales process. Going back to the basics, let us discuss what conversion and conversion rate is.
What is a Conversion?
Conversion is first defined by what it is to you based on your needs. For example, an eCommerce business uses conversion to track sales, while another business may use conversions to include specific engagement metrics that rely on ad revenue created by pageviews. Typically conversions are used to track a lead for businesses focused on driving leads to their website. Tracking leads to a website can be done by setting up secondary conversions such as events, engagements, and other items such as click-to-call or email sign-ups. Some websites receive high traffic but low conversion rates. In this case, you should audit your website to increase user experience and confirm your conversion tracking is set up correctly.
How Do You Calculate a Conversion Rate?
In official terms, a conversion rate tells you how many people viewed your website or took the conversion goal you defined. Each conversion rate is valued differently depending on the business. It requires internal and external research to determine where you stand among your competition and where you want to be. The calculation behind a conversion rate is straightforward. You will use your current conversion and divide it by the number of visits to your website; this will give you a conversion rate that you can then use to base your monthly performance.
Example:
- May 2022 click-to-call (my conversion): 15
- May 2022 visits to my website: 550
- 15 conversions/550 visits = 2.7% conversion rate.
This example shows that out of 550 visits to the website, only 15 users called through the website. Of course, this does not mean that only 15 users called you for the month; instead, only 15 users utilized your website to call you. Look at your Google My Business insights to find more calls to your business.
What is a Good Conversion Rate?
Calculating your conversion rate can show areas your website may need improvement. A reasonable conversion rate also depends on your business and the competition within the industry. One conversion for a Lawyer will not provide the same revenue as a hair stylist’s conversion. It is essential to be patient as some months will be more profitable than others. However, the rule of thumb is to receive a 5-15% conversion rate that is considered reasonable. Remember that each business and industry is different, and a 2% conversion rate can still be reasonable if you are in a competitive field. Talk with your marketing professionals to see where your conversion rate is!
Grow Your Conversion Rate With Boston Web Marketing
At Boston Web Marketing, we aim to set your business up for success. Our digital marketing specialists work hard, so you don’t have to. We offer many services to increase your rankings. If you are concerned about your conversion rate or are looking to increase it, schedule a website consultation free of charge. We look forward to hearing from you. For any additional questions or information, please contact us at 857.526.0096!