Another metric that marketers find extremely useful is the online conversions metric. This determines the efficacy of your marketing strategy when it comes to converting your online audience into customers. How could we define a conversion?
In plain English, a successful conversion would be when a person sees an ad and, afterward, decides to purchase that product or service. Thereupon, it is easy to understand why marketers turn to this strategy. Simultaneously, this metric should be utilized throughout the entire year, in order to assess whether a given strategic approach is actually efficient or the other way around.
Assessing a Website’s Effectiveness of Converting Visitors into Leads
In general, digital markets are interested in online conversion paths. In most scenarios, the conversions paths direct to the product and shopping cart pages. To that end, calculating the traffic of these pages is highly recommendable, as that is a dependable indicator of the actual number of people that actually intend to make a purchase or not.
In plain English, this metric determines if a company has a successful approach to converting visitors into leads or not. As for the formula used for this metric, it is the following:
To exemplify, in the case in which you had a number of 50 conversions from 1,000 clicks, then, your conversion rate would be 5 percent.
It’s also worth noting that marketers should concentrate on tracking new and returning customers. Hence, key elements worth noting include new customers, returning customers, the average revenue per buyer, the total transactions and the total revenue.
Expressly, the total number of transactions embodies the total number of purchases made during a given timeframe irrespective if the purchase was completed by a new or returning customer. Meanwhile, the total revenue incorporates the amount of revenue resulted over a timeframe from all types of customers.
What Are the Benchmarks for This Metric?
Moving on to benchmarks, these are of utmost importance for marketers, allowing them to compare and contrast their own performance with the standards for a given industry. Evidently, there are given benchmarks for every industry and domain; benchmarks also vary by the device. Nonetheless, regardless of this, there are some golden rules that apply in most situations.
To that end, in regards to commercial KIPs, the benchmark is 1.40 percent. On the other hand, by device, the desktop conversion rate is 1.8 percent, whereas the conversion rate for tablet is 1.37 percent. Concurrently, the benchmark conversion rate for mobile devices is of 0.61 percent.
When analyzing a conversion rate, it is fundamental to avoid focusing all your attention on the volume of sales. You should also factor in the percentage of recurring customers, while assessing the abandonment rates, the registration rates, so on and so forth. In this way, you’ll determine in what areas your website is underperforming.
Evidently, both your landing page and homepage represent key entry pages, playing critical roles in optimizing your online conversions. Therefore, make sure you deliver the right message clearly and address your audience accordingly.