Good Conversion Rate Guide
To all those unfamiliar with the concept: when talking about Good Conversion Rate For an eCommerce Business it generally means those Key Performance Indicators (KPI) that show how well your online website has been performing, therefore, conversion rates are basically synonymous with KPI.
Online businesses need to know their performance is ‘killing’ the competition; are they getting results good enough to leave all competitors in the dust? So, in order to win over the hearts of all consumers, it is vital for you, as an entrepreneur, to know the minds of your target customer.
Your website is not just for holding content and aesthetic visuals, and themes, to captivate every visitor, but it’s core function is to convert all visitors into customers who go through your website’s contents all through till they checkout. Conversion rates are essentially the percentage of all website visitors turned into customers, following all your stated CTA offers; it’s an efficient manner to calculate how effective your message is and how appropriately feasible your product is. Conversion rates are relative to the type of items being sold; products at affordable prices are more likely to have higher conversion rates than those selling expensive ones.
Also, every E-commerce measures different things when considering their conversion rates: purchases, add-to-carts, subscription, sign-ups or repeat customers. Basically, all these are important metrics to be measured, and it is not really about boosting sales as much as it is about capturing the essence of all information that eventually leads to sales.
Thus, for an E-commerce, all information about all these metrics is important to get the best scope of the business being done. The Add-to-cart informs the percentage of visitors that kept an item(s) in their cart but did not make it through the checkout, representing the intention to purchase the product. Purchase Conversions show abandoned carts and the ratio of buyers to visitors. Both these will help your E-commerce analyze all those factors that might be having an effect on the purchase behavior of customers, thereby tailoring their website’s design and content to better suit their needs.
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It is said that the best conversion rate for companies is above 10% (mostly for bigger ones), with the average being between 2-5%. ‘Good Conversion Rates‘ itself may sound complicated, but its execution is fairly done through a tracking program, like Google Analytics, or you can conduct it manually as well: just divide converted customers with the total visitors of your website and multiply with 100 to get the percentage.
For every metric there is a need for a baseline to be formulated first before the calculation begins, similarly for finding a Good Conversion Rate for your website, you need to first test out the waters by settings basis for your analysis; you need to examine your current baseline, and your potential one in, let’s say, the next 5 years. This ultimately creates a motive for you and serves as a thrust for your business ensuring that the hard work and efforts remain consistent.
Many companies strive to get their conversion rates higher, and to that the best way is to first perceive their whole online business from the perspective of the customers: maybe the information on the website is not comprehensive or it is too cluttered, or the design and layout are not appealing; so, there can be a play of many factors in the eventual purchase decision of the website visitor, and all these should be addressed by the business owners or online service providers.
It is advisable for behavior reports to be analyzed as they give information about where the most clicks occur on the page, what is the limit in scrolling through the web page’s content, etcetera. This gives an overall analysis of the website’s performance and helps in stating higher conversion rates of your E-commerce websites.
