Conversion rate is the percentage of interactions that result in conversions. This can be applied to many things, from your Google Ads to your natural website search links.
Conversion rate is a key performance indicator that can tell you a lot about your business and its success.
But what exactly does it tell you? Why should you care about Conversion Rate?
Why is Conversion Rate Important?
Like many metrics, performance tracking conversion rate can be a valuable insight for what to improve.
The percentage of users converting from a particular Google Ad or from the landing page can inform where to focus efforts, especially when it comes to understanding other metrics like Quality Score.
A good Conversion Rate is important for increasing your return on investment (ROI) because it lets you make more sales with the same amount of traffic.
Increasing the conversion rate of an ad proportionally increases the value of ad spend, so a good conversion rate can really save you money.
Next, let’s talk about how to see your conversion rate.
How to Calculate Conversion Rate
Conversion Rate can be calculated by dividing the number of conversions by the total interactions, and the result is usually expressed as a percentage.
For example: Your Google Ad gets 1000 interactions, and 70 conversions from those interactions. 70 ÷ 1000 = 7%.
If you’re running a Google Ads account, you can see your conversion rate in the Google Ads account through the use of conversion tracking.
To view this conversion data in your Google Ads account:
- Click on your Goals
- Navigate to Summary under the Conversions menu
- Use the conversions column to view the conversion rate and other analytics
What is a Good Conversion Rate?
A good conversion rate depends on the industry as well as the business’s individual profit margins and other overhead costs.
A general guideline is that around 2-5% is considered standard for most general industries with fair competition.
If you’re in a niche market with less competition, then you might expect or need higher conversion rates. We recommend looking at your specific industry standard for conversion rate and comparing it.
Now that we know what to expect for a good conversion rate, how do we improve it?
How to Improve Your Conversion Rate
There are quite a few ways to increase the conversion rate of a Google ad.
- Changing the landing page – Updated landing pages that align with Google Ads can help
- A/B testing – Similar to changing the landing page, making small changes to a website or an ad can improve conversion rate.
- Negative keywords filter – Adding negative keywords can filter out searches that aren’t relevant to the product you’re offering.
- Add a better call-to-action – Sometimes, prospective customers aren’t motivated to try a product without the proper call-to-action (CTA). By adding a compelling CTA, you could increase the number of conversions to the next step of selling your product.
- Purchase funnel – Finding where most of your prospective customers are leaving the page or not converting. This can help you decide how to change things during A/B testing.
Overall, these are just a few methods, but the important part is remembering that conversions are just a means to get high-quality leads.
Not happy with your conversion rate? We’re here to help. Get a Google Ads evaluation today!