Let us ask you this:
Are you happy with your conversion rates?
One report found that only about 22% of businesses are happy with their conversion rates and are looking for ways to increase them.
It makes sense to focus on conversions. After all, if you are not turning visitors into customers at a higher rate, then all your digital marketing efforts are for nothing. Conversion rate optimisation (CRO) can help you maximise every penny that goes into your online marketing and increase the percentage of visitors that take the desired action, whether it’s buying your products or services, subscribing to your newsletter, or downloading your eBook.
But, what is a good conversion rate, and which form of marketing has the highest conversion rate?
Let’s find out!
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What Is a Good Conversion Rate?
If you have a conversion rate of 2% percent can you get to 5%? And if you have a conversion rate of 10% is that the maximum you can go to or can you increase your conversion rates even more?
According to Wordstream, the average conversion rate for landing pages across industries is around 2.35% with the top 25% converting at a 5.31% rate or even higher. Of course, “average” is not what most companies are aiming for. Most businesses want high conversion rates that would allow them to gain a competitive edge in their market.
So, what is a good conversion rate?
According to Wordstream, businesses should aim for a conversion rate of 10% or even higher, depending on your industry. If you are an eCommerce business, where the highest conversion rate is 6.25%, shooting for 10% is a bit too far-fetched. But, if you are in the finance industry where the highest conversion rate is close to 25%, then a conversion rate of 5% isn’t really good.
What Form of Marketing Has the Highest Conversion Rate
Conversion rates can vary based on the channel and marketing strategy you are employing. Organic search has an average conversion rate of 16% while social media has been shown to have a low conversion rate of about 0.71%. Google Ads have an average conversion rate of 3.75%. When it comes to email marketing, conversion rates can vary a lot depending on the industry. Retail, for example, has a CVR of 4.53% while the conversion rates for legal services can go as high as 15%.
While it’s OK to compare your CVR with the industry benchmarks, don’t let yourself get too carried away by these numbers. A lot of factors can influence your conversion rates, such as what type of email campaigns you are running or where your prospects are in the buying journey.
There are other things you should be paying attention to rather than the industry averages:
- Your target audience: Who are you trying to target and what are the channels they are most likely to use to engage with your content? If your prospects are more likely to convert after seeing your social media ads, then it may not be a good idea to bombard them with email campaigns.
- Define your conversion very clearly: Depending on the channel that you are using, a conversion can mean very different things. For social platforms, a visit to your site equates to a conversion while most businesses see actual sales as conversions. Be very clear about what you are targeting and monitoring.
- Understand the Buyer’s Journey: You will have different types of conversions (and conversion rates) at different stages of the buyer’s journey. A prospect who just learned about your business is less likely to buy your products or services so, at that stage of the journey, you should focus more on lead generation rather than sales.
- Understand That There Are Different Types of Conversions: A conversion doesn’t necessarily mean a sale. A visitor adding products to the cart is a type of conversion even though the purchase was not completed. A prospect using their email address to subscribe to your newsletter after visiting your landing page is a type of conversion too even if it didn’t result in a sale yet.
How to Increase Your Conversion Rates
While experts recommend a conversion rate of about 10%, the reality is that any conversion rate that is higher than your current one is a good conversion rate. But, how can you increase your conversion rates?
Here are some of the most effective marketing strategies to help your site generate more leads and sales.
Use Pop-Ups, But Do It Smartly
Picture this: you’re looking for information about how to install your baby monitor, but when you open the web page, the content is blocked by a giant pop-up urging you to subscribe to their email newsletter. Most probably, you close the ad without even reading their offer. While there are times when entry pop-ups can be effective, they can also have the opposite effect – a lower conversion rate.
A better alternative would be to use delayed pop-ups. These are banners that appear after the visitor has spent a certain amount of time on your website. That way, they had enough time to decide if your content is worth reading and if they would like to subscribe to your newsletter or download your resources. You can also use exit pop-ups to grab users’ attention with promos or last-minute deals.
Use A/B testing to analyse the efficiency of different pop-ups and see which ones are better at generating a conversion.
Focus on Content Marketing
The quality of your content can have a major impact on your conversion rate. Think about it this way: a landing page that only features a few specifications of the product you are trying to sell will likely perform worse than a page where you offer detailed information and use videos to explain how to use the product.
High-quality content allows you to show your expertise and earn the trust of your target audience.
Use Interactive Content in Your Email Marketing
Not only that email marketing has high open rates, but 72% of consumers say that they prefer to receive promotional content via email rather than social media ads. But, with the average person receiving about 126 emails in a day, how can you ensure that yours stand out and your target audience actually engages and converts after opening them?
In addition to writing relevant subject lines, personalising the content, and making sure you send the right type of email at the right stage of the buyer’s journey, you could also use interactive content.
Quizzes and polls can help you engage your audience while personalised offers and rewards will make them more likely to check your products or services and subscribe. You could also entice them with a free trial and help them find out if they need your services.
Make sure to include a clear call to action in your emails so that your readers know what they should do next to benefit from your offer.
When it comes to digital marketing, people are always looking for silver bullets. They want to know the most effective SEO strategies, the best ways to increase conversion rates, and the fastest strategies for growing a business. But, the reality is that most marketing strategies require time to show results. Even with the strategies we’ve mentioned in this article, you won’t see results overnight. You have to experiment and tweak your methods until you find something that ticks with your audience. And, even then you have to be on your toes as trends and online behaviours change fast and what worked a week ago might not work anymore.
This fast pace is what we here at Australian Internet Advertising love about online marketing. It forces us to learn and always reconsider our strategies. And it makes us excited about helping other businesses keep up and gain a competitive advantage.
If you need help improving your conversion rates or building a marketing strategy that is more in line with your business goals, we are more than eager to start working with you.
Contact us now and tell us about your business and your plans and we will try to turn them into reality.