Conversion Rate
What is the conversion rate?
The conversion rate (CR) is simply the percentage of users who have completed a specific action, whether that’s making a purchase, watching a video, downloading a file, filling out a form, booking an appointment, etc.
1. How to calculate the conversion rate
Calculating the conversion rate isn’t complicated. You simply divide the number of goals achieved (desired actions taken by users) by the number of unique users who, for example, visited the website or opened an email when measuring an email marketing campaign. Then, multiply that figure by 100 to get your conversion rate.
The following formula allows you to calculate the conversion rate:
(Goals achieved / Total visits) x 100 = Conversion %
2. Improve the conversion rate
There are multiple tools and strategies to improve your conversion rate, which can be adapted to your digital marketing plan or email marketing campaigns to varying degrees. These include:
– Partnerships and co-branding. Build beneficial partnerships and alliances with other brands. This will allow you to reach a wider audience, improve your branding, and consequently, boost your conversions.
– Improve brand image. If you are well-known and respected, visitors will be more receptive to any proposal you make. Work on your branding and your conversion rate will improve.
– Landing pages. Without a doubt, using a properly planned landing page is one of the most effective ways to achieve a higher conversion rate.
– Payment and shipping costs. Whenever possible, offer multiple payment and shipping options (clearly stating the shipping costs). These are two common barriers to purchase, and transparency here helps boost your conversion rate and reduce abandoned carts.
– Clear and visible return policy. Ecommerce stores can improve their conversion rates by ensuring buyers always know what return and cancellation options are available to them.
– Social media and content marketing. Your social media is also a great way to strengthen the relationship with your audience, just like creating and sharing valuable content. Make sure your content marketing efforts are highly relevant to your customers.
– Simplify your forms. In any type of form, you should only ask for the information strictly necessary for your goal. If you ask for too many details, you’ll likely lose many conversions. In this case, less is more.
– Testimonials and case studies. In general, the social proof and positive reviews we display on our website will help build trust and, consequently, improve conversions and sales.
– Proper use of discount coupons and offers. Using discount coupons and running promotions helps convert visitors into customers, but don’t overuse them and ensure they have very clear KPIs.
– Use email marketing. Email marketing is an excellent communication channel that easily brings you closer to your customers and is a great ally for conversions. Don’t neglect it, and run your mass email campaigns strategically.
– Website loading speed. Users demand immediacy. If your site takes too long to load, many won’t wait around, so make sure your website’s loading speed is as fast as possible.
– Cross-selling and up-selling. Cross-selling and up-selling help you boost sales and move higher-priced products, leading to an improved conversion rate.