Are you running an online business and feeling stuck? You have traffic, thanks in part to paid advertising, but orders aren’t flowing in. Or are you just starting out and want to ensure you don’t overlook anything? Calculate your conversion rate and pay attention to how users behave on your website.
What is a conversion rate?
A conversion rate, or conversion ratio, is an indicator of your website or e-shop’s success. It tells you how many people from all visitors take the action you want them to. This action could be filling out a form, providing your email address, adding an item to a basket, or completing an order. These actions are also called conversions. If the conversion rate is low, something is wrong with your website.
Who is interested in the conversion rate?
This indicator interests people who do business or try to earn money on the internet. The wonderful thing about the online world is that you have the opportunity to obtain a lot of data, which serves as your feedback. Based on this data, you can adjust and fix your current settings for better results and higher earnings.
Formula for calculating the conversion rate
How do you calculate a conversion rate? First, you need to know the total number of conversions and the total number of website visitors. Enter the numbers into the formula:
Conversion rate = number of conversions / total number of website visitors * 100.
Let’s say 80 people visited your e-shop and 2 of them placed an order. Your conversion rate is therefore 2.5%. Use Google Analytics or other programs to find out where those 78 people went and why. You need to work on pages with a high bounce rate. Graphics, texts, UX design, etc.
What is an ideal conversion rate?
An ideal conversion rate essentially doesn’t exist. Whatever your result, your goal is to continue to improve. Aim to increase this number by a tenth each month. Continuously work on your website or e-shop. The times and requirements of people are constantly changing, so update your pages regularly.
Tracking tools
Nowadays, there are several tools for tracking conversions and website visitor behaviour. Some are paid and some are free. One of the most used tools is Google Analytics, which also offers a free version. If you do not know this program, invest in training or try free Google Analytics training to start with.
However, there are also various paid tools for tracking users. These tools allow you to monitor where a visitor moves their mouse, how they navigate the page by scrolling up and down, what their path through the website looks like, whether they get stuck anywhere, and many other pieces of information. Popular paid tools in our country include Smartlook, Hotjar, Yandex Metrica, etc. All larger e-shops use these programs.
How to increase the conversion rate
As a first step, focus on UX (user experience). Is your website user-friendly and usable? It is important that users can navigate your website intuitively and do not have to think too much. If a potential customer is confused by your website, they will leave. Also check your graphics and text. The tools mentioned above will help you identify which parts of the website to focus on.
Whenever you make a change, wait several weeks to see if it affects your conversions. If nothing much happens, keep trying. Try to set aside some money for this purpose. While using an expert will cost you more than you might like, it will save you a lot of energy and time. Your invested money will return sooner than with a trial-and-error method.
Do you want to share your experiences in this area with others? Write them down in the comments; other readers will appreciate your willingness to share.
Do you have a moment? How about reading an article with tips on how to create passive income.
