How confident do you feel about the conversion rate of your business? Do you think you’re a high performer, getting more conversions than most of your competitors? are you lagging behind? Or are you somewhere in the middle?
I think you’re average business because average business is — well, average. And if that’s the case, I’m willing to bet that even if your conversion rate is higher than your peers’ conversion rates, it’s still not as high as it could be.
What is a “good” conversion rate anyway?
I want to start this discussion with a point about “good” conversion rates. You can have a “low” or “poor” conversion rate, but what does that really mean? At what point does the conversion rate go from “bad” to “good”? Is it at 3 percent? at 5 percent?
You can ballpark the overall “average” conversion rate at somewhere between 2 and 5 percent. But this statistic is not significant, as the average conversion rate changes significantly depending on environmental factors.
industry. Different industries have different conversion rates. If you’re thinking about selling a product, higher costs equal lower conversion rates. This is understandable; More expensive products require more thought and are more prone to things like delays and cart abandonment. So one industry’s outstanding conversion rate may be another industry’s substandard rate.
Channel. You also need to think about the channel you are using, as conversions come in different contexts and functions. For example, the conversion rate you get with your PPC ads won’t equal the conversion rate you get with email marketing – even if you’re running what’s essentially the same content.
As you can see, there is a lot of room for subjective analysis when it comes to averages and what counts as “good” or “bad”. Your conversion rate may seem marginally low, but it may be higher than average compared to other businesses in your industry.
Conversely, you may feel like you have a high conversion rate – but it can be surprisingly low for your chosen channel.
Additionally, the average conversion rate for a given set of terms doesn’t tell you much about what’s possible. For example, the average brand in a given market may see a 3 percent conversion rate, while the top performers may see 12 percent.
In that context, with a 5 percent conversion rate, you might call yourself “above average,” but you’ll still see less than half the conversions for a top-performing brand.
The main reasons your conversion rate is low
So, what factors are responsible for your conversion rate being up or down?
Some reasons may be beyond your control. For example, if your industry or chosen channel has an inherently low conversion rate, your potential may be functionally limited.
So, how would you change it?
However, most marketers can gain more control over their conversion rates by addressing the following issues in most situations:
Audience targeting discrepancy. Whether you are using content marketing, PPC advertising, email marketing, or any other channel as your primary conversion generation engine, you need to keep your audience in mind.
You are reaching a specific demographic with specific attitudes and values; If your content is not relevant to them, or if it is not persuasive to them, it will fail.
A weak offer. Most conversions provide some sort of exchange. For example, you are offering a product for money, or you are offering a PDF in exchange for personal information, or something similar. If the exchange is not considered favorable, people will not move forward. Enjoying offers with free gifts, extended discounts or other bonuses can help you catch more people.
a time consuming process. Users are impatient, no matter the demographic. If your conversion process takes too long, or if it’s too effort-intensive, people will drop it in the middle. You can streamline and simplify the process to gain more interest (and lose fewer people along the way).
Clear Call to Action (CTA). I am always surprised to see landing pages where the call to action (CTA) is not clear. If you want to secure more conversions, you need a bright, borderline obnoxious button for people to click easily. Sometimes, something simple, like changing the color or moving it up in a design, is all that’s needed to win more conversions.
lack of information. In most situations, people want enough information before voluntarily giving out their personal information or hard-earned money.
If it’s not clear what the benefits are, or if people are confused about what your offer is, they won’t take action. Linking to a more robust list of benefits or other informational resources can help you here.
less trust. People need to believe in you before they are willing to convert. If you are a brand new, or if people come