What is a conversion rate? Let’s start by defining a conversion. It’s different for each business. Basically, it’s what you want a visitor, a potential customer, to do when they land on your website. It could be:
- Ecommerce sales
- Lead generation: joining and growing an email list via an enticing offer or free download — ebook, whitepaper, or video.
- A click to call or book an appointment
- Fill out a contact form
- Start a free trial
A “conversion” isn’t just about making a sale — it involves any essential action a visitor takes on your website, turning them from a casual browser into a lead or customer.
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A conversion can start with a paid ad on social media, a search engine, or another website. Additionally, they can start with an organic social media post or search engine result page (SERP).
What is a Conversion Rate?
The conversion rate is calculated by dividing the number of conversions, clicks, downloads, leads, sales, etc., by the number of visitors to your website x 100%.
In other words, if you had 100 visits to your website in a week and you had 10 people convert, your conversion rate is 10%. That’s great! However, take a look at the overall conversion rate benchmarks across several industries in this table with data from Ruler.
| Industry | Average Conversion Rate |
|---|---|
| Automotive | 7.9% |
| Beauty & Cosmetic | 3.5% |
| Construction & Engineering | 4.9% |
| Education | 6.3% |
| Finance | 6.3% |
| Health & Social Care | 2.3% |
| Legal | 7.9% |
| Marketing & Advertising | 6.2% |
| Professional Services | 6.1% |
| Real Estate | 2.8% |
| Retail & eCommerce | 2.4% |
| Software | 7.6% |
| Travel | 1.9% |
Based on the conversions we’ve analysed across 13 industries, the overall average conversion rate is 5.13%. That’s notably higher than what we reported in previous years, something we’ll touch on in a moment.
A few things stand out from this data. Legal, automotive, and software sit at the top, all above 7.5%. Meanwhile, travel, retail, and health and social care are at the lower end, all under 3%.
From the data we’ve looked at, industries with higher-value or more considered purchases tend to have lower overall conversion rates, not because their marketing isn’t working, but because the buyer’s journey is longer and involves more touchpoints before a conversion is formally captured. Real estate and travel are a good example of this.
The conversion rate sits at 2.8%, but that’s happening after a lot of research, comparison, and back-and-forth that isn’t always visible in a single session.
Ruler
How to Increase Your Conversion Rate
If you base your goals on your industry’s conversion rates and are happy when you meet them, that’s not good enough! You should try to always improve them! Don’t settle for just making it when things can be tweaked to make it better.
Obviously, your rate will depend on the content on your website, aka blogging, as well as your social media posting. The objective is to draw people to your website. Without visitors, you won’t have people to convert! Consequently, your website plays a key role in converting visitors into leads or sales.
That’s where the User Experience and the User Interface come in.
A bad UX and UI will cost you conversions and sales!
You may think your website looks good, but if you’re getting visitors and no conversions, then it’s not working for you. A website is more than a nice online brochure! It’s your 24/7 salesperson! For instance, how far does a first-time visitor have to go to do what you want them to do, that is, convert?
Put yourself in your target market’s shoes and look at your user experience and interface objectively.
Your call-to-action (CTA) should be everywhere that makes sense. At the top, in the footer, after an explanatory video, at the end of a blog post, in the sidebar, but don’t overdo it!
Set SMART Goals and Check Analytics
Naturally, if you’re just starting, you won’t have past data to work with. Thus, you have to base your goal on your industry’s average. Set your goals monthly. At the end of each month, look at your analytics and insights. They will tell you what’s working and not working. If you met or surpassed your goal, then what you’re doing is working — keep it up! Your next month’s goal should be a bit higher. If your conversions fell short of the average, then you must analyze what went wrong.
Here’s a video to help guide you in determining that…
In summary, set goals and plan marketing campaigns month-to-month. That way, they’re easier to handle and analyze. It’s OK to repost content that worked, that is, drove people to your website. Social likes, comments, and shares are great, and they do help with reach and exposure. However, they are vanity metrics. Naturally, what you want are those website visitors and ultimately, conversions!
If you’d like me to review your current marketing efforts, click here to book a free 15-minute virtual consult.
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What is a conversion rate?
A conversion rate is the percentage of visitors who complete a desired action on your website, such as making a purchase, filling out a form, or subscribing to an offer. It is calculated by dividing the number of conversions by the total number of visitors and multiplying by 100%.
How do you calculate the conversion rate?
You divide the number of conversions (or other defined actions like clicks or leads) by the total number of visitors to your site, then multiply by 100%. For example, if 10 out of 100 visitors convert, the conversion rate is 10%.
Why are user experience (UX) and user interface (UI) important for conversions?
A bad UX and UI will cost you conversions and sales. If visitors can’t easily find what to do or complete a conversion, you lose potential leads. Your site should act like a 24/7 salesperson, guiding visitors smoothly to the desired action.
What should you do to increase your conversion rate?
Aim to improve beyond industry averages by optimizing your content and website, and by enhancing the user journey from discovery to conversion. Focus on clear calls-to-action, fast load times, helpful information, and a seamless path to convert.
How should SMART goals and analytics be used in conversion optimization?
Set monthly goals based on your industry benchmarks, then review analytics and insights at the end of each month. If you meet or exceed goals, raise the next month’s target; if you miss them, analyze what went wrong and adjust your strategy accordingly.
