Conversion Rate – Five W’s Guide
When you first start investing in marketing campaigns, you realise how many different terms and metrics there are to measure in terms of the performance of your ads. Differing from ‘click-through rate’ and ‘cost-per-click’ is ‘conversion rate’ – a calculator that tells you how good your ad is at getting a potential consumer to do what you want them to do. The higher the percentage, the better you are at marketing your products or services. However, this is just the basics of what a conversion rate is and still leaves a lot of questions unanswered, so let’s delve in and explore the five W’s of achieving a commendable conversion rate.
Who Uses It?
Conversion rates, in addition to other statistics, are something marketers usually invest themselves in when running their marketing campaigns. However, conversion rates and their tracking are not something that is solely restricted to use by marketers. It’s also measured amongst small to medium businesses who tend to handle their own marketing and advertising.
What Is A Good Conversion Rate?
Calculating an average conversion rate is an almost impossible figure to estimate. It depends on a number of factors, including the industry, the product or service you’re promoting, as well as the specific actions you’re trying to track. The focus should not be on achieving a high conversion rate but rather on gaining a valuable return on investment. Additionally, a conversion is not always a ‘good conversion’ if it doesn’t result in a sale!
When Is It Applicable?
Whenever you run an advertising campaign, you can invest in conversion tracking to calculate your average conversion rate and see how your ads are performing. This will give you a chance to find out which ad works best to work on improving future campaigns with calls-to-action and offers that you know consumers will invest in.
Where Can I Keep Track Of It?
Keeping track of your conversions is the best way to measure the success of your marketing campaign and luckily, there’s an almost endless amount of software to help you do so. At SponsoredLinX, we’re big fans of Google AdWords and Salesforce and recommend SalesforceIQ or Salesforce Pardot. In addition, HubSpot CRM, Insightly and WordStream Advisor are highly rated. These programs are designed to help you determine which campaign is more successful and providing the most value to your business.
This is something you should be asking yourself. What have you got to lose by investing in conversion rate tracking? There are a plethora of reasons as to why you should install conversion tracking and essentially no excuse not to do it. Conversion tracking can help you determine which keywords and ads function best, it sheds light on where you may need to improve your user experience, assists you in making profitable marketing decisions, provides a data history on previous campaigns, assigns a dollar value to what each click costs and creates more opportunities for you to work on optimising your campaigns.
How Do I Calculate It?
Calculating your conversion rate is a simple process. We’ve provided an example below:
Conversion Rate = Conversions / Visitors * 100
In this example, we’ll say that out of 11,272 visitors, 1,946 of them converted and did what you wanted them to do. The equation would then be 1,946 divided by 11,272 which would equal a conversion rate of 17.26%.
1,946 / 11,272 * 100 = 17.26%
And voila! That’s your conversion rate and one of the most important marketing metrics you can track and quantify. While it’s great to see your click-through rate, those clicks aren’t going to be worth anything unless they take the action you want them to such as filling in a form, signing up for a newsletter or making a purchase. You can buy all the clicks you want, but if they aren’t converting, your money is wasted. Installing a conversion rate code can help you justify your spending and adjust to suit the needs of your business.
Call the SponsoredLinX marketing experts today on 1300 859 600 to find out how well your campaigns convert consumers!