Your conversion rate is hands-down the most important metric in digital marketing.
Everything you do in online marketing is
designed to convert visitors to your website into paying customers for
your business. And conversion rates don't just include sales -- people
who make appointments, fill out contact forms, call you, and request
free quotes also count as conversions. A conversion can be any desired
action that brings your business closer to making a sale.
It's easy to get overwhelmed by metrics
when getting started in digital marketing. You must watch click-through
rates (CTRs) and cost-per-click (CPC) while always considering your
return on investment (ROI). But the whole point of digital marketing is
to maximize conversions for the cheapest-possible price.
In this article, we'll help you understand why conversions are crucial to your success.
Why Conversions Matter
Increasing the conversion rates of your online marketing campaigns is usually the cheapest way to boost your profits.
Think of it this way -- would you rather
get more customers from Google AdWords by doubling your ad budget or by
optimizing your advertising approach? Optimizing for a higher conversion
rate means more bang for the buck. That's a big reason why conversion
rates are so important.
That's not all - here are three other reasons why conversion rates matter:
#1: Conversion rates can predict success or failure.
Want to know whether your business is on
the right track? Conversion rates give a pretty honest assessment,
especially once you've optimized your campaigns.
With help from analytics reports, you can
see which parts of your business get the strongest conversions, and you
can predict which audiences are likely to become your best customers.
Likewise, weaker conversion rates indicate where your business strategy
needs work.
#2: Better conversion rates can save you money.
Campaigns with better conversion rates are
generally more efficient than campaigns with weaker conversion rates. A
higher conversion rate lets you cover more ground without increasing
your ad budget, or you can reduce your ad budget and have cash leftover
for testing new marketing tactics.
#3: Focusing on conversion rates will improve your website.
Creating an air-tight sales funnel is the
key to boosting conversion rates. Your campaigns, your website and your
sales processes need to be as in-sync as possible. As you learn which
factors are most important for driving conversions on your website,
you'll eventually discover how to make your site more valuable for
visitors and customers -- and the benefits of this extend far beyond
short-term profits.
How to Boost Conversion Rates
Now that we've reviewed the importance of
conversions, the next step is taking action to boost your rates. Here
are six easy tips to take your conversion rates to new heights.
#1: Sharpen your ads. The first step toward increasing conversions is nailing your ad copy to stand out from the competition.
#2: Optimize your landing pages. Deliver on promises made in your ad copy, and use concise, catchy headlines that immediately engage visitors.
#3: Test new ad funnels. Create new ads and variations of your landing pages. See how conversion rates change with different advertising approaches.
#4: Pare down your audience. Sometimes
casting a wider net is better, but tightening your focus to specific
consumer groups is an easy way to boost conversion rates.
#5: Use FOMO to your advantage. That's
the fear of missing out. If you're advertising a sale, say in your ads
or on your landing pages that time is running out -- and you can even
use countdown clocks for added urgency.
#6: Grow your social media. Urge
visitors to follow you on Facebook, Twitter and other accounts. Install
social media login buttons on your website if it requires a member
sign-in; people are much more likely to register using social logins.
And if you have a strong social following, display the number of
followers or shares on your pages for increased social proof.
Conversion Rates Aren't Always Reliable
Conversion rates may be the most
universally important metrics in digital marketing. However, any data
viewed out of context can be incredibly deceiving. Never be blinded by a
high or low conversion rate without carefully evaluating all the data
at your disposal.
Here are a few ways in which conversion rates can be deceiving:
#1: Higher conversion rates may hide poor performance.
Strong conversion rates are generally
positive -- that's what you want. However, you might have a high
conversion rate paired with a low sales volume. Or, despite your
favorable conversion rate, perhaps high advertising costs are wiping out
your ROI. Never assume your campaigns are profitable based on
conversion rates alone.
#2: Some of your visitors aren't there to buy.
If you focus too much on conversion rates,
you may overlook the multitude of other reasons why people visit your
website. Some people may be researching products, and perhaps they'll
eventually return to become paying customers. Some may already be
customers and they're seeking support or checking on their orders. Do
you maintain a blog? You may be building an audience. Don't become so
fixated on conversion rates that you forget all the other ways your
website is valuable.
#3: Conversion rates can fluctuate with different audiences.
Is your online marketing causing a large
influx of new visits? If so, your conversion rates may seem unusually
low. That's because new visitors are less likely to buy goods and
services than established customers. Also, visitors from different
traffic sources tend to convert at different rates. Using Google
Analytics reports can help you determine your true conversion rates
among different types of visitors.
Conclusion
Conversion rates are immensely important
when optimizing your campaigns. Not only do they indicate whether your
marketing is profitable, but they also reveal how visitors engage with
your website. Conversions aren't all that matter -- you still need to
watch your click-through rates, overall spend and numerous other metrics
-- but driving conversion rates is generally the key for successful
campaigns.
