Today we will discuss about Website Conversion Rates and why they are so important. A lot of businesses want to get as much traffic as possible for their websites. This is understandable but too often it comes at the expense of focusing more on conversion rates and targeting the right customers. In this post, we explain what website conversion rates are and why are they so important to a business.
The simple answer is that conversation rates are one of they factors in generating revenue on the Web. It can also be one of the first indicators of a problem with how your website functions and how it is being received by your would-be customers or clients. And if your website is the first impression that your business gets to leave on the public at large, you need it to make a big impact.
What are Conversation Rates?
Having a strong, visible web presence is absolutely vital in the digital age, but so is knowing that you are getting the proper return on investment. That is why website conversion rates are so important. The conversion rate demonstrates how many of the visitors to your website actually take a desired action like making a purchase, contacting the company, subscribing to a newsletter, or joining a social network.
By providing you with the percentage of positive actions, this conversion rate gives you some very big indicators of when you are doing something right or wrong with your company’s website.
What Is a Good Conversion Rate?
Normally, a conversion rate is between 0.5 percent and 8 percent of all visitors going to a Website making a purchase. For service industries, a 2 percent rate would be considered very good. If your business is selling a particular good online, the high end is 8 percent, but even a 5 percent conversion rate is usually excellent.
If you are already achieving these numbers, then you are probably doing something right with your user interface and user experience. For a business looking to get customers to grant permission to contact them–for a newsletter or product specials for example–the rate is typically between 2 percent and 3 percent of all visitors.
In simple terms, if you can double your conversation rate, you can double your online revenue. For a poor converting site, focusing on design and user experience can pay a lot more dividends than focusing primarily on traffic volume.
What Can You Do To Improve Conversion Rates?
You can use conversion rates in much the same way you analyze your web traffic. Like the symptoms of an illness, when these numbers are low, you know something with your online strategy is wrong. Low traffic means you aren’t marketing your company website well enough, and low conversion rates mean that your website isn’t doing it’s job. When this rate is low, it means that people are looking at your site and choosing not to buy your product or use your service.
Conversion rates are an indicator of a problem, and once you know there is one, you can begin looking for solutions. Perhaps your website is difficult to navigate, visually unappealing, not up-to-date, or appears less professional than your company actually is.
Conversion rates may not be specific enough to let you know what the problem is specifically, but they are a clear indication that your website probably needs some revamping. There is always room for improvement.