Every action is for achieving some goal. Likewise, if you strategize your business marketing tactics, the obvious purpose is to gain more revenue. And you do it by converting your visitors into potential customers. In all this, the purpose isn't building a primary goal rather accomplishing it. So, the perfect measuring way is to track conversion rates.
Now, you might be wondering what the term really means. If so, you're at just the right place. Here's everything you need to know about the conversion rate of your website.
What is Conversion Rate?
Generally talking about conversion, it's a valuable action performed by the user either through a click, buy, subscribe, swipe or download. Now combining conversion with the 'rate,' what does it mean?
Conversion rate is simply defined as a measure of the potential customers who visit your website for buying your product or services and the overall percentage of those visitors you win them as a customer.
So, think about Netflix as an example. It's the most popular website nowadays for watching movies and series. According to recent research, there are about 200 million paid users in over 190 countries. However, it was started in 1997, but at that time, it wasn't at its peak.
So, what's their recent take on that there is a sudden rise in Netflix users? Probably the efforts they've been putting in digital marketing. On average, $1,046.46 million has just been spent on Netflix marketing. Through this, they've generated $16.6 billion annual revenue during the past year. Diving deep into all of Netflix's popularity, marketing has won customers with a high conversion rate of about 93%.
How to Calculate Conversion Rate?
Since you've seen an increasing Netflix conversion rate, you might be wondering how to calculate your own. It's pretty simple. Just divide the winning customers by the total number of visitors coming to the website and calculate its percentage.
So, here's how you can use the formula.
Conversion rate = (Winning Customers / Total visitors) * 100
How to Increase Conversion Rate?
Paid ads and search engine optimization is a tactic to drive more visitors and increase conversion rate. Also, it indirectly means to gather more money and time in return than they actually invested. After observing the market leaders, there are some tips to improve your conversion rate:
Optimize Your Landing Page
Landing pages are the bread and butter of your website. They're the main spokesperson for your company that lets your customer know exactly what you do and why you're the best at it. Your landing page needs to be optimized to ensure that it's showing your business at its finest. Meanwhile, it also needs to be persuasive enough that the customer feels encouraged to buy from you.
A/B Testing is a widely used CRO technique. It's like observing the impact of change, either it's negative or positive. While changing the aspect of your website, you can go for CTA color, the form length. If such change helps in better results, you can integrate those variations into your website.
Adding Value on Your Page
One of the biggest turn off for a visitor is not viewing the value of the available offer. On writing the website content, the focus is on showcasing features and functionality or price tags.
However, the major focus should be adding value for a person so that visitor shouldn't be only a visitor rather convert into a happy client. So always think about the buyer's persona while offering and try to communicate well.
How Much Conversion Rate Should My Website Have?
Ideally, you should aim for a conversion rate between 2%-3%. Don't worry if you can't get close to the Netflix conversion rate. It's a pretty farfetched aim that a lot of businesses can never hit.
What Are Some Specific Tools To Optimize The Conversion Rate?
Although there are a number of tools for CRO, the most known are Google Analytics, Adobe Analytics, and Google Optimize. They offer a ton of insightful data to make your conversion rates better.
How Important is Conversion Rate?
Extremely important. If you're getting a lot of traffic but can't manage to make sales, your conversion rate needs a significant change.
If you're looking to create a profitable business from the ground up, the conversion rate is the number one factor that's going to get you paying customers. If you're not dedicating time and resources to improving this number, you're not going to get far in terms of scalability. A good conversion rate gets you sales and propels your company to unimaginable heights of success.