Competition can be tough in certain industries, and when you’re trying to gain an advantage and plan a better strategy, it can be quite useful to know the competitor’s conversion rate.
Not for nothing, but even just comparing their rates to yours can be enough to let you know if your business is on the right track to success, or if you need to improve your strategy. But is there a way to accurately identify competitor conversion rates?
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What Is the Conversion Rate?
Conversion rates are simply defined by the percentage of visitors on your website that complete a desired action, such as the percentage of visitors that signed up for your newsletter or who’ve made a purchase on your site.
Conversion rate is a telling metric that indicates your success rate, at the end of the day. For instance, if you’re running a Google Ad trying to get more people to buy a particular product, you’re obviously interested in how many people bought it. Not just that, but you also need to consider the percentage of it, as a higher conversion rate indicates a positive outcome, while a lower one generally means something is making users change their minds once they reach the page.
But by itself, the conversion rate doesn’t really indicate much unless you contextualize it. After all, a 100% conversion rate isn’t attainable, while the concept of a low conversion rate can be completely different across industries.
It’s why a direct comparison with your competitors is the best way to understand if your conversion rate is good. When you have two companies that offer roughly the same thing, and target the same audience, the conversion rate can tell you who is better at reaching their goals.
If you compare your conversion rate to your competitors and see that yours is much lower, then it may mean you need to do some improvements, and you can look at other things to find notable differences, such as:
- Ad copy
- Landing page quality
- Unique selling point
- Check-out process, etc.
This analysis basically lets you know if you need to focus more on conversion rate optimisation. Next, let’s look at some of the ways you can identify your competition’s conversion rates.
Identifying Your Competitor’s Conversion Rates
Finding out competition’s exact conversion rates short of directly asking them isn’t really possible, but you can estimate these rates and get a good ballpark.
Here are a few steps you can do:
See the average conversion rate in your industry
Conversion rates are very different across industries, and those with high levels of competition usually get lower conversion rates on average. The first step you can do to see how good or bad yours is to simply identify the average conversion rate of your industry.
You can find plenty of free reports on the topic, such as this one from Wordstream that also looks at conversion rates by the marketing tool used, not just industry. For instance, they found that for the apparel industry, the average conversion rate for Google Ads is 2.77%, while on Facebook the industry scored a rate of 4.11%.
You can use these averages to compare your conversion rates. If you’re around the average, it means you’re on the right track. If it’s lower, you may need an extra conversion rate optimisation.
Calculate the rate
You can also calculate the competitor’s conversion rate and get a decent estimation of where they’re at compared to you and the industry average.
The conversion rate is calculated by taking the number of conversions and dividing it by the total number of website visitors. You can use free tools to find good estimations of competitor’s traffic and other marketing software that can provide a rough estimate on conversions.
Again, it will not be an accurate conversion rate, but it can give you a general sense of how your competitor’s doing.
Work with the Right Agency
If you need to perform an in-depth competitor analysis and improve your marketing strategy, Australian Internet Advertising is the agency that can assist you. We leverage exception marketing software to get you a better insight into what your competition is doing, and will help you interpret the findings to improve your own marketing operations.
If you want to work with an agency that can truly help you achieve better results, reach out to Australian Internet Advertising online, or call us at 1300 304 640 and let’s see what your business truly needs to succeed.