Conversion Rate is the percentage of users who take a desired action on your website or landing page after clicking on your ad. It is used to measure the effectiveness of your Adwords campaigns.
With Databox you can track all your metrics from various data sources in one place.
The conversion rate measures the percentage of visitors who complete a desired action on your website or landing page.
This action could be anything from making a purchase, filling out a contact form, subscribing to a newsletter, downloading a whitepaper, or any other predefined goal that signifies a successful conversion.
To calculate your conversion rate, you first need to determine which actions will actually qualify as conversions. This can be a purchase, sign-up, or something else.
Once you have that information and set a specific time frame for your calculation, you can follow this formula:
Conversion Rate = (Number of Conversions / Total Number of Visitors) * 100
Say you have an online store, and in the last week, you had 5,000 visitors to your website. Out of those, 200 visitors made a purchase.
Let’s use the formula:
Conversion Rate = (200 / 5000) * 100 = 4%
In this example, the conversion rate is 4%. It means that 4% of the visitors completed the desired action, which, in this case, was making a purchase.
There’s no universally good conversion rate that can apply to any business. You need to consider factors such as industry, specific business model, and the actual conversion goal that’s being measured.
Other factors include the type of product or service offered, the target audience, and the quality of your marketing strategies.
For example, conversion rates for SaaS companies can vary widely, but a good benchmark might be around 3% to 8%.
Financial service websites, including insurance and banking, might see conversion rates from 2% to 7%.
Conversion rates for educational institutions and e-learning platforms may fall in the range of 3% to 10%.
These are some general figures across different industries, but we also prepared a few useful benchmarks across different platforms that you might find useful. We pulled them directly from our Benchmark Groups product:
Whether you’re an ecommerce store, a B2B service provider, or a content-based website, boosting your conversion rate is probably one of your key objectives.
But depending on which specific action you want to increase conversions on, you’ll need to test and refine a lot of different approaches.
That said, we compiled a few interesting strategies to help you improve your conversion rate, shared by some of the industry experts we talked to over the years:
More resources to help you improve:
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Databox is a business analytics software that allows you to track and visualize your most important metrics from any data source in one centralized platform.
To track Conversion Rate using Databox, follow these steps:
The AdWords PPC dashboard template gives a complete view of all the fundamental ad metrics, including cost-per-click, click-through rate and impressions.
Use this free dashboard template to track how awareness video is leading to branded and high-intent searches, track your Facebook ads and Google Ads performance and return on your ad spend.
Use this Google Ads advanced report to share high-level and in-depth metrics of your Google Ads performance. Present key insights like CPC, Conversion Rate, Keyword Drilldown, and more.
A bad conversion rate is typically one that falls significantly below the industry average or it’s much lower than what similar-sized competitors in the same industry are seeing.
It’s important to note that what qualifies as a “bad” conversion rate can vary depending on the industry, business objectives, specific action, the offer itself, and other factors.
As a general rule of thumb, rates well below 1% rates may be considered poor.
Yes, conversion rate matters significantly for any online business.
It directly reflects the effectiveness of your marketing strategies and the overall performance of your website or landing pages.
Clicks by Campaign is a metric within Google AdWords that shows the total number of clicks your ads received for each individual campaign. It helps you measure the effectiveness of your campaigns and make informed decisions about future ad spending.
Impressions by Campaign metric tracks the number of times each of your ad campaigns was displayed to potential customers on search or display networks. It helps to evaluate campaign performance by measuring reach and brand awareness."
Conversions by Campaign is a metric that tracks the number of conversions (such as leads or sales) that have been generated by each individual campaign in your Google Ads account. This metric can help you identify which campaigns are driving the most valuable results for your business.
The All Conversions metric is a measure of all desired actions taken by users on your website after clicking an ad, including purchases, form submissions, and phone calls.
Cost by Campaign by Ad Group metric shows the total cost incurred for a specific ad group within a particular campaign. This metric helps to determine the performance and cost-effectiveness of each ad group within a campaign.
Avg. CPC stands for Average Cost Per Click, which is the average amount of money an advertiser pays each time a user clicks on one of their ads. It is a key metric in Google AdWords and helps advertisers evaluate the effectiveness of their ad campaigns.
Avg. CPC by Campaign by Ad Group is a metric that measures the average cost-per-click of each ad group within a campaign. It helps you understand how much you are paying for each click on your ads and identify which ad groups are performing better than others, allowing you to optimize your campaigns accordingly.
The Impressions (Top %) by Campaign by Ad Group metric shows the percentage of times your ads appeared at the top of the search results page, compared to all other ads in the same ad group and campaign. It helps to evaluate how valuable is the ad position and the relevance of the targeted audience.