A Beginner’s Guide to Conversion Rate Optimization
Whether you’re selling items or starting up your personal website to provide information to the world, the internet has become a convenient way of accessing information and items without having to actually leave the house. Over the years ecommerce and other personal websites have matured and this means, as the owner, you also need to mature and consider your website’s visitors as so much more than just a metric to improve your overall conversion rate.
Whether you think so or not, every image to how your visitors navigate your pages can make a great difference on whether your audience will continue on through your website. Making uneducated guesses or decisions based on your gut instinct when altering aspects of your site can dramatically impact conversion rates which in turn will lead to a loss in sales, revenues and even worse sending customers to your competitors. This is why it’s important for you to understand how conversion and tracking can improve your overall revenue.
What’s A Good Conversion Rate?
When it comes to conversion rate, you need to know whether you’re hitting your desired target. In general terms a good conversion rate is around 2%. This is what most website or business owners aim towards, however it’s always good if you can aim higher depending on your industry.
In business terms ecommerce websites are always lower than lead sites when it comes to conversions, but this shouldn’t discourage you and your efforts. Don’t focus so much on not having the ideal conversion rate instead work on improving your current conversion rate little by little. For example, if your conversion rate currently sits at .5% work on reaching 1%. If your conversion rate is 1% work on hitting 1.5% and so on.
So why is conversion rate important you ask? It’s important because it’s the predictor of sales and leads based upon your current website data combined with your website’s visitor information. It’s essential to know your conversion rate on a daily, monthly, and yearly basis because:
- No matter how your conversion rate is currently you can always make improvements to boost your bottom line.
- Optimizing conversions helps to capitalize on potentially new customers which may be browsing your website.
- Improvements in conversion rate can lower your cost-per-acquisition which refers to how much acquiring the new customer has actually cost you.
- Optimizing your conversions can help you make more revenue which can be used on other areas of the business.
How Is Conversion Rate Calculated?
Without getting too technical your conversion rate is calculated by dividing the number of conversions by the number of total ad clicks/visitor which are set within the same period of time. Examples include:
- 50 conversions / 1,000 clicks = 5% conversion rate
- 50 conversions / 5,000 visitors = 1% conversion rate
Ways To Optimize Your Conversion Rate
Call To Actions
You may already have some call to actions set up on your website, but are they classed as ‘good’ call to actions. A call to action or CTA is an instruction that’s seen by your audience which is designed to provoke a response immediately. Generally, call to actions feature imperative verbs such as ‘call now’, ‘visit a store today’ or ‘find out more’. These however are mediocre to many other call to actions and generally don’t convert the sales that you’re looking for. Some good call to actions include:
Netflix’s call to action shows users they can join free for a month while having the option to cancel their membership at any time.
Huemor’s call to action is very inventive and draws your attention in. It shows a spaceman ready for launch with a launch button below that says do not press. Makes you want to press it doesn’t it?
Panthera has another great call to action as it helps the visitor to feel a part of something. Their call to action says ‘Join the pride today’.
Believe it or not, trust goes a long way in whether your conversion rates improve or not. So how is trust the key to conversions you ask? Trust is the most important part of your conversion rate because without it, no one would buy from your business. Here are a few ways you can build trust:
1. Trust Logos
Trust logos can go a long way in building the trust of your customers. Trust logos are specially designed logos which verify the site is trustworthy and a secure website to use. There are many websites which place their trust logos at the top of the page or next to their checkout form. While having your trust logo below the fold is still suitable, it won’t be as effective as having it above the fold. Having your trust logos above the fold of your website or in simple terms before you scroll down the page, can help increase conversions greatly. This is because your visitors can see that you’re a respected and trustworthy verified website straight away upon loading the page. Websites who have trust logos above the fold have between a 10%-20% increase in their conversion rate.
2. Customer Feedback
Customer Feedback is essential to building trust. Customer feedback can come in many forms however the two most popular choices are testimonials and product reviews. These two categories have the ability to really enhance your audience’s overall trust level when good customer feedback is given. Don’t focus on negative feedback so much, as long as the positive feedback outweighs the negative. Always address negative feedback and try to resolve it as this will also show your customers they can trust in you.
3. Other Options
While trust logos and customer feedback are crucial parts to improving your overall business’s customer trust. There are some other options that you can consider as well. These include:
- Featured publications
- Overall website design quality
- Social media icons
- Easy to find contact details
Landing pages are specially designed pages which serve as an entry point to a website. While in the typical sense any page of your website can be a landing page, in the realm of online digital marketing however landing pages are pages which are designed as a standalone web page which is used for a single objective. Your landing page won’t have any global navigation that ties it to your primary website and this is to help prevent it from distracting visitor and allowing them to navigate them away from your intended conversion goal. In retrospect a landing page should:
- Contain a form to fill out to continue on.
- Solely exist for the purpose to capture the visitor’s information and attention through the form.
In general terms, landing pages come in two different types. These include Click-Through and Lead-Generation landing pages.
Click- Through Landing Pages
Click through landing pages have the goal of coaxing your visitors to click through to the next page. They are used typically in ecommerce funnels to describe a product better or to offer significant details about something to warm a visitor up so they are closer to make a purchasing decision. The following is an example:
Lead Generation Landing Pages
Lead generation landing pages are designed to capture the visitor’s data such as email address and name. The idea of lead generation landing pages is to collect your visitor’s information to allow you to easily connect and market to them at a later date. These landing pages generally feature a form to fill out and will give you a brief description of what you’ll gain in return for submitting any personal data. Lead generation landing pages are generally used for offering:
- A physical gift via mail
- Free trial
- Contest entry
- Discount coupon/voucher
- Consultation for professional services
- Webinar registration
- Whitepaper and ebooks
- Notifications of product launches in the future
How To Make A Good Landing Page
So how do you make a good landing page you ask? There are a few things that you need to consider. These include, but aren’t limited to:
- Keep it simple, easy to read, and relatable. You only have roughly 3 seconds to catch their attention and convert them to the CTA button. Make the page straightforward.
- Use images that show what you’re offering if applicable. Visitors will connect faster if they know exactly what they’re getting in return for their information.
- Only ask for information that you truly need like address and name. Long forms tend to increase bounce rate, turning people away from clicking through.
- Don’t add navigation to other websites. The sole purpose is for them to click through or fill out the form.
- Build trust by adding any trust logos, names of major brands that use your product, service or what you’re offering.
Landing pages are a crucial component when it comes to inbound marketing efforts because they have a higher ability to capture any lead data and increase your conversion rate by sending it down your sales funnel.
While implementing all these tips can help to optimize your conversion rate, there’s no point in continuing on if you don’t understand your ROI or Return On Investment. Your ROI is calculated by dividing it by how much the investment cost. An example is as follow:
- You invest $1,000 in a small enterprise. The shares sold for $1,200 a year later. Divide the profits $200 ($1,200 – $1,000 = $200 profit) by the investment $1,000 and the ROI will be 20%.
Tracking your ROI is important to the overall success of your conversions. There are a few ROI tracking options that you can use including call tracking, Google Analytics Goal Tracking and Google Analytic Ecom Tracking.
Call tracking is specialised technology which allows for easy tracking of phone calls through different advertising media. Call tracking can also supply additional analytic information about a certain phone call and can be used as a method to review the performance of an advertising outlet.
Goal Tracking is designed to measure how well your app or website fulfils any target objectives that have been set into motion. The goal is another term used for conversion and is vital to the success of your business. Having properly configured goals allow you to gain insight into the conversion rate of your app through Analytics. Without this vital information it’s impossible for you to know the effectiveness of your marketing campaigns or business.
Ecom Tracking allows you to gain insight into sales data so you can compare it with website usage data sessions like traffic source/medium, bounce rate, landing pages etc. Ecom Tracking analysis allows you to understand the performance of your marketing campaigns and landing pages so you can see which ones are converting more visitors. Without it you won’t know which one is driving sales and which ones are failing to meet their targeted goals.
These three tracking solutions all provide you with great insight into how your website and marketing efforts are working. By analyzing and understand the data that’s collected you can easily improve your conversion rate greatly over time for increased profits and revenue.
To create a successful website, conversion optimization is key to helping make that happen. Whether you’re a small website owner or a large corporation, increasing your conversion rate can really mean the difference whether your website thrives or fails. So which conversion solution are you going to implement first?