What is Conversion Rate?
Conversion Rate is the percentage of total website visitors that complete desired actions. (i.e. making an online purchase, signing up for a service, submitting form for a newsletter, etc.)
Why Conversion Rate is important?
Conversion rate is one of the most important metrics, a measurement of a website’s efficiency.
It tells you how many people are actually doing what you want them to do.
How to calculate conversion rate?
If a website generated £100,000 of sales through 2,000 orders in a month with 40,000 visits.
The conversion rate will be 5%
Factors that influence conversion rate?
Accessibility and usability
– make the site easy to use
– don’t only pay attention to IE
– use proper colour, high quality images
– make ‘calls to action’ buttons clear and unambiguous
– provide information of product and service with accurate written language
Be clear and upfront on pricing, delivery time/cost – give customers the information at the first stage of shopping process
Trust and credibility – display contact information (esp. for expensive and/or technical product site), add a trust seal to website (i.e. BBB, Truste, VeriSign, McAfee)
– don’t asking for too much information
– allow user to purchase as a guest
Site speed – faster loading webpage can increase conversion and also have a high impact on long-term sales
Payment method – offer different payment types, be able to accept all major credit cards, online checks, etc.
Purchasing process – keep it short and simple. The order process should be simple enough that the average order takes less than two minutes.
Promotion and marketing plan – offer some free trials, coupons, discount pricing, etc.
Customer service option – provide the best way to contact if customers have a technical problems, sales question or they want to return an item. Display FAQs that covers common questions customers might have.
Example of site that has high conversion rate
Example of website that has poor conversion rate