You’ve likely heard a lot about conversion rates and how it’s important that your website’s rate should be as high as possible. You’ve also likely learned about CRO and may even have attempted to implement some CRO on your website. But what is the point of a conversion rate, and why should you even care about it? Here are a few reasons why this is something you should track.
What Is Your Conversion Rate?
Conversion rate is the percentage of visitors to your website who become customers. In this case, “customer” doesn’t necessarily mean they are buying something. They may be signing up for your mailing list, downloading your free ebook, or taking whatever other action you’ve asked them to take. If you have 100 people visit your website and 50 of them sign up for your email list, your conversion rate is 50%.
It’s not always as cut and dry as this—for example, if someone is buying something, you may want to only see new customers as part of your conversion rate instead of new and returning customers. What many people typically want to know, though, is what percentage of visitors are following their call to action. That’s a number you can use to measure success.
Why Is Conversion Rate Important?
Conversion rate can tell you if your marketing campaign is working as intended. If your rate jumps up after you start your newest marketing campaign, it shows that you’ve brought new customers to your website. If it stays the same, it can be an indication that something isn’t working quite right and that you need to reevaluate your marketing strategy.
This is also a way of measuring your return on investment. If you put a lot of money into a marketing campaign but only see a very small increase in conversions, you may be spending a lot of money for each of those conversions. It may not be worth it, especially if the average purchase amount is much less than the average cost of each customer.
If you’re having trouble improving your conversion rate, BlendIM can help. Reach out to us today to discuss what we can do for you.