Conversion rate optimization is a crucial process for every website. It helps you to capture people’s interest right up to the point of purchase.
This process goes through every step of the visitor’s journey to becoming a customer. It is a never-ending story, as people’s online habits and activities are constantly changing.
Also, it is cheaper to keep people who are already visiting your site and convert them into customers than it is to try to get more people to visit your site without improving how many of them buy something.
What is a conversion in marketing?
In marketing, a conversion means getting someone who might buy something to actually do something you want. Like buying a product or filling out a form.
It’s a really important sign of success in marketing. When someone visiting your website does something that helps your business
Examples of conversion in marketing
- signing up for your newsletter
- getting a free item
- downloading an e-book
Think of conversions as how people react to your advertising, how you get leads, and how you present your brand. If you’re not getting enough reactions, it’s time to change something.
💡 Note: Remember, customers are now quite well-informed because of fast-moving digital tech. So, you need to figure out which conversions are really important for your business goals. If you don’t, your competitors might get ahead.
But, just knowing what these important actions are isn’t enough. You also need to figure out how many actions by customers are needed to make really good money for your business.
And this is when conversion rates come into play!
What is the conversion rate?
Conversion rate is the number of conversions divided by the total number of visitors.
💡 For example:
- If you have 100 followers and they complete 10 desired conversions, then your conversion rate is 10%.
- It’s one of the most preferred indicators that can tell you a few things about the performance of your business.
CR = Number of goals achieved / number of visits x 100
What is the average conversion rate?
The average conversion rate is 3.68%, in some industries this number can even go up to 5%! In some sectors, good conversion rates start from 5%, while in some cases from 10%.
However, it all depends on the actual industry that your business is in. Inform yourself by reading one of our benchmarks in the given topic. Only one in ten businesses has a conversion rate above 11%, so you don’t have to worry about that. It’s unique and not sustainable in the long run
💡 Want to know the average conversion rate in your industry? Check here.
But, we do recommend making your conversion rates better! In this guide, we’ll also talk about how to improve your rates. But for now, we want you to know that there are different kinds of conversions.
What are micro-conversions?
Small steps, or micro-conversions, are little things customers do that help us reach our big goals. Think of it like building a pyramid, where lots of small blocks add up to complete the big structure at the top. That’s why these small steps are just as important as the big ones (macro conversions).
You might see now why we can’t ignore these little things customers do. It’s like when someone says hi to us for the first time. Even though it seems small, they’re actually starting to see how we can help them, which is good for us later on.
Thinking of these small steps as investments means if we put in time and effort, they can lead to big rewards.
Focus on Small Steps First: Before trying to make a big sale, let’s pay attention to the small goals, like when someone clicks on a link to join us, adds something to their cart, signs up, watches a video, likes a post, or signs up for our newsletter.
Examples of micro-conversion
Signing up for a free plan might be a big win if that’s your goal. But it’s a small step if you want to turn free users into paying ones.
- clicking an opt-in link
- adding something to their cart
- creating an account
- watching a video
- liking a post
- signing up for a newsletter
What is a macro-conversion?
Macro-conversions are like the big brothers to micro-conversions, so you probably have an idea of what they are by now. A macro-conversion happens when you reach your main business goal, like when visitors buy something from your website and become customers.
These big steps happen later in your customer’s journey. As people move through different levels of your process, fewer of them will make these big, desired steps. But don’t worry, because these steps will soon help you make more money.
Big steps can also include actions like:
- signing up for a newsletter
- asking to try a demo version of a paid product
- subscribing to software
- clicking on a referral link
How to measure conversion rate?
If you would like to measure conversion rate, follow these steps:
STEP 1 Find out which events are important for your business
💡 For example: as a restaurant owner with an online reservation system, you have to pay attention to table reservations. When this event is triggered, a conversion happens. A conversion event is a kind of metric that is used to measure your users’ activity. But how do you keep track of their actions?
STEP 2 Use a website tool that keeps track of these conversions
STEP 3 Update your tracking
💡 For example: in the case of an e-commerce store, you can measure conversions by URLs if, say, the thank you page is set to load after a purchase. You can also set up custom events to measure clicks on specific buttons. You can read more about events here: What does an event exactly mean?
STEP 4 Analyze the data to see how you’re doing
STEP 5 Make changes to get more conversions and make better revenue
Why is measuring conversion rate important?
To figure out how well your business is doing in getting customers, first, you need to pay attention to the important steps that help your business goals. Keep track of these steps. If you don’t, you might not understand why you’re not getting as many customers as you hoped.
It’s really important to watch this closely so your customers keep liking what you do. If you make your process better, you can get more customers and make more money!
Remember, making these improvements doesn’t cost as much as paying for ads. Also, even a small change on your website can quickly help you get more customers. Spending money on making your business better is smart! It’s smart, because it helps you find out what’s not working, instead of guessing with other ideas that might not help at all!
Boost your website with our free conversion funnel optimization tool. Identify customer drop-off points to maximize revenue.
What is conversion rate optimization (CRO)?
Conversion rate optimization (CRO) helps you get more customers from your website visitors by giving you simple tips and ideas. It’s a great way to figure out what your customers are doing and why.
To grab more interest from potential customers, you need to plan who you’re targeting and how. Planning is key to standing out in the market, but don’t overthink it. As Eisenhower said, making plans is more important than the plans themselves.
In short, try things out and see what works best. There are lots of strategies to explore.
CRO is crucial for boosting your marketing. Even a small tweak can make a big difference. So, if there’s a chance to improve, go for it!
Why can the conversion rate be low?
When your business isn’t getting enough customers from its website, it’s not just about changing settings or adding new features. You also need to think about a completely new plan. If this sounds like a lot of work, ask yourself how you’re spending your time.
Growing your business means getting support from the people who use your services. More customers mean you’re on the right track. Remember, your business is all about your customers. So, if you want more customers, you need to focus on making them happy, even if it’s hard work.
Understanding Low Conversion Rates
There are many reasons why you might not be getting enough customers.
Tools to Help
Using tools like analytics can show you what’s working and what’s not on your website.
Heatmaps
Show you the busy parts of your site and the quiet ones, helping you see where to make improvements.
Session Replays
Let you watch how visitors move around your site, showing you why some might leave without buying anything.
Analytics platform
Presenting your most important metrics on a silver plate on a single page.
These features all work on Capturly. Capturly Analytics is a tool that helps you understand your customers better by showing you how they use your site and what they’re interested in.
Making Changes
- New Plans: Knowing there’s a problem is one thing, but you need to come up with a new plan that might mean big changes.
- Questions to Ask: The big question is, how can you get more customers? Being ready to make changes and try new things is very important for any business owner.
In short, to get more customers, you need to look closely at what’s happening on your website. Also, you need to use the right tools to understand your customers, and be ready to change your plan to make things better.
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Key Takeaways
- There are two types of conversions; micro, and macro. Micro conversions are small steps that can lead to the main, macro conversion.
- A conversion rate shows us the percentage of customers who completed a micro, or macro conversion from the total number of customers. Therefore you gain information about each of your goals’ success.
- The best way to track, and analyze conversions is by setting up an online analytics tool and looking at the summarized numbers.
- Conversion Rate Optimization is a way how your site can be even more attractive to customers.
- There can be many reasons for a possible low conversion rate ratio. However, by evaluating your site’s efficiency with heatmaps, a session replay, and an analytics platform function you can discover the why-s behind the curtain.