man increasing sales with higher conversion rate

How Is Conversion Rate Affecting Your Online Business?

Trey Business, Ecommerce

Your website should lead visitors to act. A conversion happens anytime a visitor takes an action that you want them to take. For your website, this conversion is most likely a sale, a sign-up or a call. You can find your conversion rate by dividing the total number of actions taken by the total number of unique visitors and multiply by 100. For instance, if your website had 5,000 unique visitors and 100 sales, your conversion rate would be 2%. Conversion rate optimization (CRO) is the process of increasing your conversion rate. Here are a few ways conversion rate can affect your business.

formula for conversion rate

Conversion Rate Optimization Grows Your Business

Conversion rate optimization is essentially free because it is optimizing on people who are already on your site. Referring to our example above, optimization is increasing our 100 sales from our 5,000 visitors. Whether it is making the purchase process easier or adding reviews to a product or service, these tweaks can increase your conversion rate. Raising your conversion rate will maximize your profits. Because you aren’t paying more for each new conversion, each new conversion goes straight to your bottom line. Now, getting more people to your site is a different story.

Your Conversion Funnel Is Very Important

The typical customer funnel starts with awareness and is followed by interest, desire, and finally action. But, how many of your visitors are taking action? Some key metrics that will help you understand your conversion funnel are a bounce rate, an exit rate,an average number of page views, and average time on site. These can all be found via Google Analytics.

If your bounce rate is high, visitors are not finding what they are looking for and leave without going any further. If this is the case, you need to improve your homepage or landing page and guide your visitors to where you want them to go. Next, the exit rate will show you where your traffic is leaving your site. You can learn a lot about your customers by looking at your browse abandonment, when customers leave after viewing a category or product, and cart abandonment, when customers leave after adding something to their cart or at checkout. The average time on site and average page views will show you how long visitors stay on your site and how many pages they viewed.

Infographic of conversion funnel

These metrics are fundamental and will give you a good idea of what to improve. Your goal should be to make your conversion funnel as smooth as possible.

There Is Always Room For Improvement

Once you have started to see an increase in your conversion rate this is not the time to stop improving your website. There are many tests that you can try as you seek to find the best solution. Test your call-to-action button wording, size, and color. Look at your competitor’s websites and take notes of what you like and dislike. Change your on-site promotional offers. Upload new and high resolution pictures. Test your website through website review sites and see what others think. As you continue to make changes, be sure to watch how each change affects your conversion rate.

Running your website is only part of your company’s presence online. The information you can gain from tools like Google Analytics can have far reaching effects on your entire business. For help with understanding your conversion rate, contact our CRO team at Tractus. We’ll help you optimize your conversion rate and grow your business.

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