Conversion Rate – What is conversion rate?
The conversion rate is the percentage of people who have visited our website and carried out a specific objective.
In e-commerce a conversion is usually associated with a sale, but depending on the nature of each site it can be a registration, a subscription, etc.
This is one of the most important metrics in online marketing, and is closely related to the total visits a website receives.
It is especially important in SEM, because it is the main way to measure the ROI of campaigns. It is advisable to have it as a key performance indicator (KPI) of any marketing action carried out.
How is the conversion rate measured?
The conversion rate is obtained by dividing the objectives met by users, divided by the visits we have had and multiplied by 100. It is expressed as a percentage with the following formula:
(Objectives achieved / Total visits) x 100 = % Conversion
How do you know if the conversion rate is good?
It is a difficult question to answer, since many factors influence it, starting with the sector in which you work, the competition and another series of details such as the product you offer or the competition with which you have to fight for those conversions.
A study carried out by Wordstream estimated that, on average, and combining all industries, an average conversion rate of 2.70% was obtained in Google Adwords search campaigns and 0.89% in of Display.
CRO (Conversion Rate Optimization): Conversion Rate Optimization
As it is such an important metric, it is important to try to improve it as much as possible. The techniques aimed at this direction are known as CRO or Conversion Rate Optimization. That is why it is important to measure this rate and the factors that can influence it, establish objectives through the conversion funnel and try to make it as high and profitable as possible.