Conversion rate is essential for a digital marketing agency in Dubai to measure its marketing, advertising, and sales efforts. That is why most companies consider it a key performance indicator and regularly monitor it.
However, some businesses misapply, misinterpret or improperly place conversion rate for use as a primary metric. Companies need to review conversion rates and their use as a KPI from time to time.
Brands spend a lot of resources on the best SEO services in Dubai to drive more traffic to their sites. But, the catch is driving traffic is super easy than the actual challenge — increasing conversions.
Conversion rate is a term marketers use all the time to describe the performance of their marketing efforts. The reason is that the conversion rate lies at the heart of the marketing of a business that runs online.
What Is the Conversion Rate?
You can calculate your page’s conversion rate by dividing the number of conversions by the number of ad engagements, which you can track to a conversion within the same period.
How Can You Calculate the Conversion Rate?
If you are not taking digital marketing services, you must know how to calculate the conversion rate for your website.
Here is the formula to calculate the conversion rate:
Conversion Rate= Conversions/Visits
Visits: You can call them “sessions” or “clicks” or view them more granularly.
You can adjust this formula depending on the language and the formula used by your analytics tool and other metrics.
Let's consider an example of the conversion rate calculation. Suppose your website’s conversion goal is signing up for a newsletter.
In September 2022, 1,034 users visited your website, and 61 users among them signed up for your newsletter.
Now, your number of conversions= 61
Your site’s number of visits= 1034
61/1034* 100 = 5.89%
Thus, 5.89% is your website’s conversion rate.
Clarification
You custom-define conversion for your website. You can choose a common conversion goal, such as making a purchase, something more obscure or secondary. SEO service in Dubai can help you set an apt conversion goal for your business website.
You can view conversions as clicks to a site from a particular platform or ad campaign. Or you could categorize your data in a granular fashion.
Some Examples of Conversions Goals
Here are some examples of conversion goals:
- Submitting lead information
- Buying a product/service
- Register on your website
- Make a call to your business
- Interact with your website (for example: visiting specific pages, time on the website, page count)
- Subscribing to the email list
- Downloading an asset (a guide, an ebook, or some other kind of content)
- Opening an email that you sent
- Signing up for a discount/giveaway
A higher conversion rate shows that your content is performing well in compelling interested people to convert.
When site visitors convert, they should be directed to your customer relationship management (CRM) system. It will enable your digital marketing agency in Dubai to target them better as they pass through the sales funnel.
Your conversion goal is usually a step towards a visitor becoming a buyer. Therefore, your content and promotional efforts should ensure as many conversions as possible.
What Conversion Rate Should You Aim For Your Business?
Your conversion rate calculates the effectiveness of your customer-facing content. If 100 people visited your site in a day, and 7 of them filled up your lead form, your website is 7% efficient.
A 7% conversion rate is too good to be true. Conversion rates from 2% to 5% are considered good across all industries.
According to workstream, the average conversion rate is 2.35% for all websites. But the best sites enjoy conversion rates of 11 percent or higher.
Conversion rates may vary from industry to industry. Websites that sell electronic items or business services enjoy higher conversion rates. The average conversion rate for sites that sell electronics is 3.50% (Wordstream).
Some businesses, like those that sell industrial equipment, tend to have super underperforming websites.
According to Yotpo, websites that sell health & beauty products have an average conversion rate of 3.80%. Those who sell drink, food, and tobacco have a 4.95% average conversion rate.
Apparel & Accessories and Home & Graden websites have average conversion rates of 3.50 and 3.27%, respectively.
E-commerce sites that sell sporting goods have the lowest average conversion rates of 2.35%.
So, if you wish to know the average conversion rate for your industry, perform some research and ensure that you don't compare oranges to vehicles.
Why Bother Calculating and Monitoring the Conversion Rate?
While we were defining how to calculate the conversion rate, you might be thinking the same question as the heading. Why does this metric even matter?
Here is a quick and straightforward answer. By calculating and tracking the conversion rate for your site, you can:
- Scale expected ad spending
- Identify your profitability
- Recruit sales professionals
- Assign resources more effectively
- And much more
To identify whether your marketing strategy is performing well, you need to know the number of your target customers who replies to them.
The conversion rate tells you how many people are taking action compared to how many people are contacting you. Hands down, it is among the most accurate and valuable metrics.
Furthermore, it also supplies you with analytics on how your segmentation efforts are performing. By looking at the conversion rate, your digital marketing service provider can craft better advertising campaigns for social media and other platforms. It will allow you to focus on particular customers depending on various criteria like interests, location, and more.
Bottom Line
Your online presence can drown if you don't know how to calculate your conversion rate. You may be paying your sales team more than necessary without knowing. And you might also pay more than needed for your leads.
If you don't want your business to go bankrupt, you must know to calculate the conversion rate and boost it. If you wish to attain high sales volume, you should take the first step, which is trying to improve your conversion rate.
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