How To Determine Your Conversion Rate ?
The conversion rate of a website is vital to its existence. A well-crafted, enlightening, and informative site has little use to a company if it does not result in any sales. There are many factors that can impact user conversion such as the product line, pricing, the organization’s reputation, and so on. But it is estimated that out of every hundred visitors to your page, only two might actually buy an item, and this is actually deemed to be a strong return. Therefore, you would need thousands of regular viewers to your site to make a real impact. But how do you determine what your conversion rate really is, especially if you are well-versed at generating business offline? This article will provide some important tips on how you can calculate the conversion rate of your website. Note that we are not discussing how to increase conversion rates here, but instead how to determine them in the first place.
• Look At Offline Trade
It might sound strange to begin by talking about what you are doing offline, but it works a part of a process of elimination. Let’s say that you operate a company which produces food products, and on one particular day, you have a pop-up stand at a market with tins, packets etc. During the course of that experiment, you will know exactly how much money you make at that very moment. Similarly, when handling phone calls or even face-to-face requests at your normal base, you can note down precisely what each sale makes in total. By taking these steps, you are narrowing down the ratio of sales so that you will be left with a percentage, either high or low, of your monthly intake. And as a result, whatever remains will have come from online sales. This is important because, at first glance, you might look at your income and believe that the site is working wonders, only to realise that a fraction of sales actually came from your online page. This is a good starting point, though, because it puts online traffic into perspective compared with other areas of your business.
• The Success Of Product Promotions
Websites are a great way to inform customers about a discount for a particular product, or perhaps a special offer for a set period of time. Straight away when visiting your page, a customer can be told about this incredible saving that they can make, and a wise businessperson would adapt this further so that the offer codes can only be utilised online. If you analyze the sales figures for the following week or two, as well as highlighting the products most emphasised within those campaigns, it will be easy to define how successful they were. If your typical conversion rate is 2%, perhaps the temporary discounts resulted in a bounce up to 5% or even 10%. If your sales take a sudden jolt in the midst of a sale, it will be easy to recognise that your conversion rate has been boosted purely due to increased online activity.
• Before & After Analyses
It’s possible that you are reading this while in the midst of creating your very first website. Therefore, you do not have previous online sales figures to use as a barometer, but that is not a bad thing by any means. For the purpose of this article, it actually makes things simpler, because up to this point, all of your sales have been offline. Once you have your site in place and you are starting to inform your competitors that it exists and is worthy of their time and attention, you will be able to keep an eye on how sales figures change. Do they suddenly rise up now that the website is active, or do they stay stagnant because conversion rates are slow in growth? By comparing what sales were like prior to the site’s creation and then upon the page being published, you can clearly note whether there has been an upswing, thus determining the viability of the site in its maiden weeks.
• It’s All About The Numbers
At the end of the day, though, the conversion rate provides merely a percentage of online user activity compared to the number of clicks that the site gets. On paper, generating 50 sales a day is fairly impressive for a small business, but if your site is getting 100,000 hits per day, that return suddenly seems miniscule. On the other hand, generating those same 50 sales on a daily visitor count of 1,000 views is rather impressive. At that point, it will be a case of looking out for viewing patterns (are the same users buying the same products on a regular basis?), focusing on what items are receiving the most click-throughs on your page, any information pertaining to the location, age and gender of your customers and so on. By doing this, you are gathering sufficient information to build a true conversion rate whereby you understand why the percentage might be at 1%, 2% or more, rather than simply having daily sales numbers that have no real correlation to the overall success of your business. This will allow you to tailor your online strategy so that your conversion rate improves, meaning you understand not only what traffic the site generates, but why it is achieving such numbers, and how that can build for the future.
As noted, online conversion rates are the basis on which a website has a justifiable reason to exist, but by recognizing what conversion rates truly mean, how they can be calculated and how you can be tactical towards changing those figures for the better, it can only be of benefit to you, your page and your business. We can provide you with further guidance about conversion rates for websites at www.breezedevelopment.co.uk.
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Breeze Development is a digital marketing company based in the northwest. If you would like a no-obligation chat about an existing or new website, please arrange a free digital marketing consultation.