Conversion Rate and its meaning
Conversion rate is an indicator that shows the ratio of conversions to visits.
What is a conversion
A conversion is any user-generated event that an offer owner deems valuable and is willing to pay money for. This may include events such as:
- Signing up to a newsletter
- Installing a mobile app or making an in-app purchase
- Purchasing a product
- Submitting contact information
What is a conversion rate?
A conversion rate is one of the most important success metrics. It tells you how many people have converted vs how many people have visited your landing page or clicked your ad. Because you measure conversions compared to various events, there are often different abbreviations and descriptions for conversion rate:
- CR: The ratio of conversions vs clicks on a landing page
- CV: The ratio of conversions vs visits to a landing page
No matter which event a conversion rate refers to, it always tells you how successful your campaign is at persuading your visitors to convert. Generally speaking, the higher your conversion rate, the more money you get.
Look at the example below:
If you got 150 visits to a landing page and got 35 conversions, the conversion rate would be 35 / 150 * 100% = 23.3%
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How to improve your conversion rate?
A process of improving a conversion rate is called conversion rate optimization (CRO). It’s a series of efforts aimed at persuading more people into taking your offer. It can be divided into several parts:
Landing page optimization
Landing page optimization focuses on making your landing page more attractive and informative to your visitors. You can achieve this by:
- Improving design. Make sure your CTA button is clear and visible above the fold (so it doesn’t require scrolling to view). If your landing page is long, make sure that you put the CTA under each section, so it is always available.
- Including social proof. Testimonials and user reviews are a great way to increase your credibility and address any objections your visitors might have.
- Improving content. Make sure that your text and images are consistent in terms of the message they convey with ads and an offer page. Use problem-solution structure, bullet points and headlines to make your content easily readable.
- Improving responsiveness. The landing page has to load fast or you risk that visitors will bounce instead of considering your offer. Host your landing page on a fast server, reduce the number of unnecessary scripts, reduce the size of images.
Conversion flow optimization
A conversion flow is a process that leads a visitor to a successful conversion. If your conversion is lead generation then a conversion flow would be filling all required text fields with contact information.
Generally speaking, the easier the conversion flow is, the more conversions you should get. Make sure that there are no unnecessary text fields and payment methods are easy to use. Single opt-in or double opt-in conversion flows (where payment is added to a phone bill with one or two confirmations) work really well.
Ads and headlines optimization
Ads need to be eye-catchy enough to get a visitor’s attention, but they cannot feel intrusive or distracting. With native ads it is important that your ads feel like they are in place and blend nicely with the surrounding content. Such native ads are a cure for banner blindness.
Are there other success metrics?
Apart from conversion rate, the other success metric is Return on Investment (ROI), which tells you the ratio of money earned vs money invested.