Digital Marketing

Conversion Rate in Marketing: How It All Works

Did you know that the top 10% of websites have a conversion rate of 11.45% or higher? Most small businesses or startups don’t fall under the category of top websites, and that’s okay! To find out more about Rainbowhud click here.

If your website isn’t at the top, it’s safe to say that your conversion rate is going to be lower.

So, how many of your website visitors actually convert to customers? Learning how to calculate a conversion rate will help you understand your marketing efforts. Keep reading to learn more about your conversion rate in marketing.

What Is a Conversion Rate?

A conversion rate calculates how many users have completed the desired marketing action. Conversion goals and marketing actions might include the following:

  • Free e-book downloads
  • Newsletter subscribers
  • Website visitors
  • Survey answers
  • Comments
  • Product sales

The rate is calculated by taking the total number of converted users and dividing it by the overall audience size.

You can calculate this manually or use an online tool. A lot of businesses use tracking software to help with marketing. Get more info about tracking software here.

How a Conversion Rate in Marketing Works

Although it’s easy to calculate a conversion rate, some factors can affect it. When you understand the factors you have a better chance of maximizing a campaign’s performance.

In general, three factors influence a conversion rate in marketing. Look into value proposal, user experience, and page load time.

Value Proposal

To drive conversions, a campaign needs to have a unique value proposition. This is the value promised by a business to deliver to its customers.

A value proposition should do the following:

  • Explain what the product or service is
  • Explain the benefits that the product or service provides
  • Explain how the product or service is different from the competition

Marketing strategies that include the value proposition should be straightforward, clear, and concise. Even so, it should motivate the prospect to take action.

User Experience

Your campaigns should have sales funnels that ensure a seamless buyer’s journey. This focus on a high-quality user experience will drive more conversions.

Make sure your website has minimal obstacles that can generate leads and convert visitors to paying customers. A website that is navigable can work on different devices because it’s mobile-friendly.

Page Load Time

You can’t change the load time on all marketing channels but your website should have a fast page speed. Consumers don’t want to wait for a landing page to load.

If the load time takes too long, you won’t convert customers and instead will have a lot of people abandoning your site. This will bring your conversion rate percentage down.

Why Conversion Rates Are Important

There are various reasons to calculate a conversion rate in marketing. The most common reason is to learn how many visitors on your website turn into paying customers.

Conversion rates are important to help you understand if your marketing campaigns are working. By calculating your conversion rate, you’ll benefit from the marketing data you find.

For more helpful business articles, check out the other posts on our website.

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