What is conversion rate and how is it calculated?
Conversion rate is one of the key measures of any e-commerce website’s success. It is the ratio of users who pursue your call to action to the total number of visits. For example, if you want visitors to register on your social network, and 10 out of every 25 users sign up, then your website’s current conversion rate is 2/5. Whether you are marketing a product or are looking for new users to join your social networking portal, you can gauge the progress of your campaign by monitoring its conversion rate.
How can companies improve their conversion rate?
- Identify your goals: The first step towards achieving better a conversion rate is, of course, identifying your most profitable business goals. By short listing the desired actions that you wish your users to undertake on the website, you can refine your marketing campaign to meet your exact targets.
- Site Navigation: Design your website in such a way that users can easily reach the areas you want them to find. If you are offering a product or service, be sure to add prominent links to these on your homepage. You can even add video tutorials to guide your visitors. Keep the purchase/registration process simple and remove unnecessary barriers. Many experts also believe that a captcha can discourage visitors from completing the call to action.
- Motivate your users: User compelling images and active language to make the content on your website more encouraging. Do not distract your visitors with unnecessary content and links. Even if you have an elaborate webpage, make sure that the primary spotlight remains on your products, services, and sign up button.
- Monitor trends and patterns: Conversion rate can help you determine which site designs and marketing strategies work best for your business. Experiment with multiple campaigns and select the one that provides the maximum conversion rate.
- Credibility: Make sure your website looks professional and authentic. You can earn the trust of your users by adding third party trust logos and security channels. A lenient return policy can also encourage users to avail your offers.