Conversion? Conversion rate? Please what?
When you are dealing with inbound marketing, you will come across these terms sooner or later.
Unfortunately, I have the feeling that most solo entrepreneurs, self-employed and small businesses do not yet have a real conversion mindset.
When I look at our customers, the picture is confirmed. There is a lot of attention to pageviews and visitors. But hardly on the conversion and conversion rates.
The thing is, if you don’t look at these metrics, you have no real control over your growth.
Therefore I want to make it clear to you in this post that traffic is not so important. It’s all about the conversion!
But let’s start at the beginning and clarify what the two terms actually mean.
What is a conversion?
A conversion is a desired one actionthat your visitor should do. This should be related to your business goals.
In other words, it is conversion the status of a person into a new status. For example from visitor to lead.
Exactly what you define as a conversion depends on your website or your company. It can be so many things:
- Submit a form
- Download a file
- Register for an account
- Answer a survey
- Click on an ad
- Call the provider
- Buy a product
- Testing software
You can also set a conversion “more gently” and focus on brand awareness:
- Number of pages or posts visited
- Number of repeated visits
- Time spent on the website
Basically, you can track everything a computer can measure and a user can do. There’s no right or wrong.
What is a micro conversion?
Sometimes we focus so much on the end point that we forget the different phases of the customer journey. But we have to address our potential customers each Convince point.
That’s why micro conversions come into play here. What we just discussed were macro Conversions. As the name suggests, there are smaller events that lead to a big story:
For example, as a micro conversion you can view the following events:
- Click on a button or link
- Place a product in the shopping cart
- Scroll down on one side
- Play a video
- Leave a comment
- Share a post
Generally speaking, a website has few macro conversions but many micro conversions.
These small micro events help you make incremental improvements that primarily affect your design and user experience. This will reduce hurdles, improve things and create more value. In the long term, this has an indirect impact on your growth.
What is a conversion rate (CVR)?
The conversion rate is that percentage of visitors who perform a desired action. It does not matter whether it is a macro or micro conversion.
So she describes that relationship between visitor and action taken. A typical example here would be what percentage of your visitors buy something.
Accordingly, it is calculated as follows:
Conversion rate = number of conversions / visitors
For example, say your website has 10,000 visitors a month. If 200 visitors buy something during this period, you will have a CVR of 2% (200 / 10,000).
Conversion expert Bryan Eisenberg has a great metaphor: “Knowing your conversion rate is like knowing your temperature when you have a fever. It doesn’t tell you what’s wrong. It only tells you whether you are too warm or too cold according to medical standards. That’s exactly how the CVR tells you whether the situation still needs action or not. ”
Why should you focus on conversions and conversion rates?
Of course, you can just focus on getting more traffic. But that’s exactly the same as pouring water into a holed bucket. Not very productive, is it?
It is often easier to work with what you already have, rather than getting something new.
Of course, you should measure the number of conversions. But conversion is even more important rate, Because it gives better information about where you still are optimize should.
More specifically, you have the following advantages, which the conversion rate experts give us here:
- More customers – If you double your CVR, you will automatically double your sales. You get new customers, almost free of charge.
- More profit – If you double your CVR, double Not your costs. Your profitability increases accordingly.
- More growth – If you have improved your CVR and are more profitable, you can reinvest the profit to continue growing.
Let me give you an example: Let’s say you have a 10% conversion rate for your landing page where you sell a product. Now you optimize z. B. just the headline and your CVR increases to 11%. Let’s say you have 1,000 sales a year. So after optimization, you have 100 more. If your average retail price is $ 200, you now have $ 20,000 more in sales. Powerful for such a small change, isn’t it?
For this reason, Bill Gurley, a former Wall Street analyst, once said: “The conversion rate is the most important online metric”.
How do you track your conversion and conversion rates?
I hope you are now slowly convinced of a conversion mindset. But maybe you are asking yourself now: How can I measure the whole thing ?!
In principle, very simple: Here is a good guide on how you can store conversion goals in Google Analytics. And here’s how to deal with it afterwards.
But storing and viewing them afterwards is a bit complicated in Google Analytics. That’s why CWT Advertising automatically tracks the number of contacts, including the associated conversion rate (a great advantage of an all-in-one platform) and displays them clearly in a dashboard. You can also save other conversion goals with just a few clicks.
How do you develop a conversion mindset?
First, you should recognize the importance of conversion and conversion rate … and yourself more focus on it.
After that, consider what your macro conversions are. What keeps your company alive? What is the goal of your website? Are they sales, subscriptions, memberships, leads or downloads?
Even if the customer journey is not linear, it helps you if you look at the conversion process or the conversion funnel linearly. So create a funnel for your company. Visitors> Leads> Customers should serve as a basis (and usually even suffice). For CWT Advertising it looks like this:
So a visitor ends up on our website (usually on a blog article), registers as a subscriber (and becomes a lead), then gets an offer to test CWT Advertising at some point and signs up (Signup). If we can convince him then, he will become a customer.
We regularly track these individual steps there in a table:
How often should you track these metrics? At least once a month, I also like to watch it weekly because I have my finger on my pulse and can counteract or improve it better.
I would not focus on the micro conversions here. I recommend simply tracking them on the side and looking at them if necessary (e.g. a redesign).
Finally, sit down once a month or once a quarter and see which conversion rate should be optimized and come up with ideas on how you can do this.
What is a good conversion rate?
It depends. Yes i know i hate that answer too! But the context is always different. The industry, the customers, the customer journey, the brand awareness, the price, the complexity of the product are all factors that are relative.
Landing page expert Tim Ash also says:
The conversion rate differs within different industries and even within companies in the same industry.
In general, you can assume that only a small part (somewhere between 1-10%) performs the desired action. You should be aware of that. But is not too bad.
I like to have at least a very rough clue so I know if I’m above or below the average. Sometimes gross is better than nothing! 😉
Therefore, here are the average conversion rates that are relevant for inbound marketing:
As I said, these are only guidelines. They can be very different from yours. The only important thing here is that you have a good conversion rate if it is higher today than last month.
Of course, you need traffic first to get conversions at all. But for me, the post wasn’t about conversion optimization at all.
I just wanted you to pay attention to the conversion and conversion rate they deserve.
Because these key figures provide information about how good your website is in terms of your company goals for real works. If you focus more on it here, you get more control over your growth.
So make sure you track your conversions at all. Then create a conversion funnel and track your key figures regularly in a table.
If you have a conversion mindset, you no longer ask yourself: How can I get more traffic? But you ask yourself: how can I get more conversions? A big difference.