Want to know what is the Conversion Rate? Do you want to know the reason behind its great importance in the world of digital marketing and the dependence of all marketers on it?
If this is the case then you are in the right place. If you are:
- A beginner marketer and take your first steps into the prestigious world of marketing.
- A beginner entrepreneur who wants to know the basics of marketing campaign evaluation.
- A person is interested in everything related to digital marketing.
Here you will find everything you need about your conversion rate. In this article, you’ll learn about:
- Define the conversion rate.
- Practical examples of conversion rate.
- The importance of calculating the conversion rate in different marketing campaigns.
- What are CTR and its relationship to the rate of conversion?
- How not to let your conversion rate fool you when evaluating different marketing campaigns.
- How to improve your conversion rate.
In this article, you will find a lot of practical examples so that you know what the conversion rate is, and how to rely on it the right way as a marketer?
If you don’t want to do this by yourself then you can hire an SEO agency in mississauga to increase your sales. Now, let’s get this started.
What is the conversion rate?
Conversion rate is a marketing parameter that is used to measure the efficiency of different marketing campaigns. It means the percentage of customers who implemented the requested offer out of the total number of total visits for that offer.
Let me explain more to you, for example, that you made an ad for a discount in your restaurant, distributed the ad to 100 people, and only 20 people attended.
This means that the conversion rate is 20%. The conversion rate, as I mentioned, depends on the demand that you request from clients, which represents the goal that you seek to achieve.
Months, these requests are:
- the sales
- Fill out a data form
- Contact your company by phone
- Send a message via private chat programs like WhatsApp
- Register for a poll
- Subscribe to your mailing list
- Upload a specific file
- Follow your account on social media
These orders are usually called the CTA – Call To Action, and the conversion rate is measured based on the customer’s response to the CTA.
With this, it becomes clear to you that the conversion rate is one of the most important factors that are taken into consideration when evaluating any marketing campaign, regardless of the purpose of which is different.
Mostly, the higher the percentage of conversions, the more this indicates the success of the marketing campaign … But beware that the ratios deceive you, and this is what I will explain to you later.
How to calculate the conversion rate
Calculating the conversion rate is very simple as I indicated in the previous example, all you need to know is the total number of visits to the offer, and the number of customers who responded to the CTA.
With this conversion ratio = (the number of clients who implemented the goal of the offer / the total number of customers who found the offer) * 100
For example, you made an advertisement funded on Facebook to obtain sales of a product in your store, and after the end of the advertisement period, you found that 1500 people visited your store and only 100 of them made the purchase.
Thus the conversion rate is 6.66% (100 divided by 1500 and the result multiplied by a hundred). We can give you a few examples, but I think you now know very well what your conversion rate is and how you can calculate it in any marketing campaign.
The importance of calculating the conversion rate in a marketing
As I indicated earlier in the definition of the conversion rate that it is a very important determinant of knowledge of the efficiency of the various marketing campaigns in any field and on any platform, even in the marketing campaigns on the street.
And that is not all, there are many reasons why all marketers are interested in knowing the conversion rate for all their different marketing campaigns.
1- Comparing the different marketing campaigns
We can use the conversion rate to fully compare the different marketing campaigns so that we know – even initially – which one is more successful.
Keep in mind that the conversion rate is just a percentage and that it is not the only determinant that should be relied upon in comparing different marketing campaigns as I will explain to you later.
2- Comparing the different landing pages
Landing pages are the page a customer reaches when he clicks on the ad, like the product page in the previous example, which must be well designed and appropriately designed to help the customer make the decision you want.
That is why marketers rely on calculating the conversion rate for different landing pages to test their effectiveness and achieve profits.
Imagine, for example, that you made two similar ads on everything, but the first made the customer go to a landing page (A) and the other to a landing page (B).
After comparing the conversion rate between the two pages, you will decide to choose the page that has a higher conversion rate so that you can use it consistently for different marketing campaigns.
This method of comparison is called (A / B Testing) and it is one of the most important ways for marketers to improve their conversion rate.
Note: If you want to know what are the landing pages and their types and how you can design and exploit them in your different marketing campaigns, I advise you to read the following guide.
3- Test different traffic sources
Imagine that you have an offer for the same product, and you made an ad for that offer on the same landing page, one on Facebook and the second on Instagram.
After testing, I found that his Facebook ad has a higher conversion rate than Instagram, which means that Facebook traffic is more suitable for your offer.
In the same way, marketers rely on choosing the best traffic sources that suit the different offers they are promoting to achieve a higher rate of profits.
4- Test different ad
The higher the conversion rate in ads, the more this means that the ad is good and achieves the desired results from it, and this is the goal of knowing the conversion rate for each ad.
Also, marketers rely on the method (A / B Testing) to test different ads, until they find the appropriate copy of the advertisement.
5- Ensuring the efficiency of the marketing team
If you are an entrepreneur and want to know if your marketing team is doing a good job or not, you can ask about their conversion rate.
Thus, you can initially assess the efficiency of the marketing team, and then begin to go into more depth in numbers and data.
Collecting data and comparing different elements in marketing campaigns is an essential step that marketers can always rely on in assessing and making appropriate decisions.
Now that you know the importance of conversion rate in different marketing campaigns, now I want you to know one of the terms related to conversion rate.
What is the term (Click Through Rate – CTR)
The literal translation of the term Click Through Rate is the click-through rate, but the meaningful translation is the percentage of click on the ad from the total number of views or impressions (Impressions) that this ad has achieved.
Impressions: This is another marketing term that refers to the number of impressions your ad received, but not every impression turns into a click, and not everyone who clicks on the ad and goes to the landing page makes a purchase and turns into a buyer for the product.
Click-Through Rate mostly comes as an advanced stage of the conversion rate stage, and the efficiency of the ad itself is measured, the more attractive the ad, the more clicks it will receive.
The concept of CTR is not only used in advertising campaigns, but it is also used to interact with the results of search engines. For example, if during a whole day 500 users wrote a keyword in Google, then one of your articles appeared in the second result on the first page, and your article got 100 clicks, then this means that He got a CTR rate of 20%.
From this, it is clear that the CTR rate is calculated like this (the number of clicks divided by the number of views or impressions).
The importance of obtaining accurate data on the conversion rate
I previously mentioned that the conversion rate is not everything and that it’s often just an initial assessment of how efficient your marketing campaigns are.
Let me show you a few examples until you get the full picture, and know that you need more information than the conversion rate to judge any element of advertising or marketing campaigns in general.
For example, suppose you find that the conversion rate for an ad is 50%, so what did you conclude from that?
- Ad copy is great.
- Or is the landing page excellent?
- Or the source of the traffic that you relied on is more than wonderful
What if I told you that the total number of visits to the landing page is 2… Yes, only two people went to the landing page after seeing the ad.
Do you think that in this case, the conversion rate will be a measure of whether or not the marketing campaign has succeeded? … No, of course, because you need more testing.
For this, you must first make sure that you have tested for a sufficient period, and have received an acceptable number of visits to ensure that your accounts are accurate and that the conversion rate will have meaning and impact.
Another example, let’s say there are two ads on the same product, the first has a conversion rate of 8%, and the second is only 5%, so which ads are more profitable?
If you choose the first ad you are wrong, because there is a lot of information that you need to know, such as:
- Is the traffic in the two ads the same?
- How much does each ad cost?
Suppose that the traffic source is the same and that the first ad costs $ 100, while the second ad costs only $ 20, don’t you think then that the second ad is the best?
Although the conversion rate for the second ad is the lowest, the ad as a whole is much better for you than the first ad because it is much more rewarding than the first ad.
And if you spend the same $ 100 on the second ad, you will get multiples of results … which is the ultimate goal of any marketing campaign.
So do not be fooled by the conversion rate and think everything, you have to look at all the data and information before you judge any marketing campaign.
Use the conversion rate to evaluate different marketing campaigns when you are fully aware of the duration of the test and the rest of the information on cost and traffic type.
How to improve the conversion rate for your marketing campaigns
Improving the conversion rate is a very important goal and a goal for many marketers and entrepreneurs, and this is why the term (CRO Conversion Rate Optimization) appears.
To achieve this goal, you must follow the following steps.
1- Focus on the customer’s personality that targets him
Knowing who your target customer is or what is known as (Buyer Persona) is the first step in improving your conversion rate in any marketing campaign.
The Buyer Persona is the customer character that you draw in your mind, and which creates content that fits with it, based on the information you collect about this character, such as:
- the work
- The problems he suffers from (busy – raising children – budget)
Objectives (Increase income – get a perfect body – buy a new home)
When you know this information, you will know who is addressing, what are the problems that he suffers from, what goals he seeks to achieve, and what method he prefers to communicate.
After collecting this information, and whatever method you will rely on in marketing:
- Paid advertisements
- Articles on your blog
- Publications on social media
You will find that after using this information to create content and communicate with the customer, you are achieving a higher conversion rate and therefore more profit.
2- Improve your ad copy
After you’ve collected your customers’ different data, you should make sure that your copy of the ad addresses their feelings, as it relies on strong and influential words that make them fulfil what is required of them in the advertisement.
There is a lot of information that you must know to write a professional ad copy that will achieve results, so I advise you to read the following guide:
You will know how to write an ad with a high conversion rate step by step with practical examples.
3- Improve the landing page
The landing page is the most important thing in any marketing campaign, if you target your ideal customers very carefully, then you write the best possible ad copy.
And you got good traffic to the landing page … and the landing page was bad, do you think you will achieve any positive results … Of course, the answer is no.
For this you have to make sure that your landing page is professional and contains the following features:
- The language of the landing page should be easy.
- The colors should be consistent.
- The page design should be Responsive Design on the phone.
- The page load speed should be high so that the customer is tired of waiting and leaving.
- The landing page should include a social directory (testimony from an expert – previous customer experience).
Many things should be available on the landing page, and if you go to the guide to the landing pages that I mentioned earlier, you will know all the information you need.
4- A / B TEsting
I also made it clear when talking about the importance of calculating the conversion rate in marketing campaigns that marketers rely on this method of testing to compare the different elements of any marketing campaign.
No matter how proficient you are in making the content version you depend on, and also you have improved the landing page, you must continue testing for this. Try it out:
- Different addresses
- Various landing pages
- different colors
- Traffic is different
And other elements until you find the formula that yields the best results, and even after that, you must continue to improve and test, as this feature of successful marketers … continuous improvement.
I now know in detail what is the conversion rate, and what is its importance in the marketing process, and also I have learned that the conversion rate alone is not enough to evaluate any marketing campaign.
I have also put in front of you 4 ways to improve the conversion rate that many professional marketers depend on, so now it is your turn … so all you are required to use this information for your health.
Go now and try some marketing campaigns, whether it’s free or paid to get benefit from what I learned practically… I wish you success.