Let's start by showing the simple conversion rate formula:
Conversions / Clicks = Conversion Rate (x100 for percentage)
For example, if you had 197 conversions from 3395 clicks or visits, you’ll have a 5.8% conversion rate.
The conversions may vary depending on what you are looking for the user to do.
Here are some of the most common scenarios of conversions that you should be going for:
A purchase. One of the most common types of website conversion is having sales.
Forms submissions. The second most usual goal for a website conversion is form submissions.
Click a button.
Engage or react to the post.
Follow your page.
Creating an account.
Also, conversions could be something different custom defined by your goals and needs, insightful and measuring the performance of a campaign in a specific way. In other words, you can customize what specific user actions you want to track that you’ll find highly relevant to your campaigns.
How to track conversion rates?
Nowadays all advanced online channels offer the most used metrics that you need, for example, LinkedIn, Facebook, Google, etc.
Why is so important to track?
There are many reasons, but one of the main ones is to determine the ROI.
You’ll be able to see the click-through rate, the cost per click, cost per conversion, cost per 1000 impressions, and also you can track the cost per lead. If your campaign has brand awareness and engagement goals, you’ll not see a direct ROI from your campaign efforts. However, if you are measuring sales or profits, then you can compare revenues vs your campaign costs, and then you can clearly understand and decide how successful were your campaigns.
If you are about to launch a new campaign, make sure you set up your campaign goal correctly since the conversions that will be reported will be based on the goals you set at the campaign configuration stage.
How to improve the conversion rate?
You can compare different campaigns and different ads, to see which ads are performing better than others. You can see the best practices of ad A/B testing here.
You could also use CRO (conversion rate optimization) tools to improve the conversion rate, so more users take specific actions based on your campaigns.
Another way to improve the conversion consists of the UX/UI experience. Evaluate how user-friendly is your ad and your website. This means the experience should be fun, useful, and interesting, with good designs, an easy-to-understand website, relevant ad colors, a consistent message, keep it simple and always focus on the users that navigate through the website aiming for them to engage with the site. Also, have a good idea of your customer journey and keep in mind that some visitors are in the awareness stage and others are more engaged in your ads and website.
One last piece of advice before launching any campaign and thinking about the conversion goals, think about the customer persona. In other words, let’s ask ourselves who is our perfect audience? And how much do they know about our site and about what we are offering? By answering these questions, you’ll be able to determine what is the most suitable conversion goals and have a better focus on what the ad message should be on your ads.
To conclude, the top secrets you should know about conversions and conversion rates are that they are both highly valuable marketing metrics that will be always useful by launching campaigns. Optimizing those metrics is crucial to achieving better results and performance. Finally, understanding who is your audience, what they know about your website, having the right message, and making a great user experience for the users will definitely improve your conversion rate and influence them to make the right actions you need.
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Thanks for reading!