Conversion Rates with Case Study

Conversion Rate

Conversion

    To understand a conversion rate, one must understand a conversion. In web analytics, the conversion metric “examines how effective you are at converting your online audience into paying customers. Google defines a conversion as what happens when someone clicks your ad and then takes an action that you’ve defined as valuable,” (Klipfolio, n.d.). Of course, successful conversions for one business or entity may be completely different for another business or entity. This means, how conversions are measured is dependent on the type of business analyzing this data.


 

Conversion Rate

    A conversion rate is measured using this formula:

Conversion rate = (conversions/total visitors) * 100%

 

    For example, if a website had 100,000 visitors and 5,000 conversions last month, the conversion rate would be five percent, (Crowe, 2019). A conversion rate is a percent of visitors who have completed a defined goal of value on a business or entity’s website. According to a Databox survey of more than 70 e-commerce marketers, 64 percent of them report an e-commerce conversion rate between three percent and five percent, (Malnik, 2020). Because a conversion is different depending on the type of business, we will elaborate on e-commerce website conversions for simplicity. One example of a conversion for an e-commerce business’s website can be defined as visitors completing a purchase from said website. 


(Malnik, 2020)

 


SkinnyTies.com Case Study

    SkinnyTies.com was able to increase Mobile Revenue by 377.6 percent by updating their website from an early 2000’s web design to something more aesthetically pleasing for the desktop, smartphone, and other mobile avenues. The before and after images of the SkinnyTies.com website can be seen below.



(Walker, 2013)

 

    The consulting company, Gravity Department, was able to create a consistent style guideline to be followed for a more inviting look and feel and perhaps reflect the personality of the target customer, (Walker, 2013). The result of the website redesign and mobile optimization lead to a total conversion rate increase of 13.6 percent.


(Walker, 2013)

 


How Conversion Rates are Used to Help Businesses

    When it comes to improving conversion rates, first impressions matter. A website needs to be appealing and easy to use in the visitor’s eyes. Some of most effective ways of improving ecommerce conversions is to have high-quality images and video, a well-tested checkout process, free shipping, testimonials, social proof, competitive pricing, personalization, a quick loading time, cart abandonment software, and limited time coupon codes, (Malnik, 2020). Of course, without A/B testing or preliminary data of each website, it would be hard to know where changes and improvements should be made for the optimal experience. Another way to improve conversion rates and diagnose any website issues is to “reverse engineer the customer journey, starting with the confirmation page and working back to the home/ product/ landing page to look for ways to streamline the flow and process. Small tweaks at the last mile make a compounding impact on conversion rates and revenue,” said Kent Lewis of Anvil Media, (Malnik, 2020).

 


References:

Crowe, A. (2019, January 18). 15 Important Conversion Metrics & Business KPIs You Should    Track. Retrieved from https://www.searchenginejournal.com/content-marketing-kpis/business-conversion/#close

 

Klipfolio. (n.d.). Online Conversions Metric. Retrieved from https://www.klipfolio.com/resources/kpi-examples/digital-marketing/online-conversions-metric

 

Malnik, J. (2020, June 9). 26 Ways for Improving Your Ecommerce Conversion Rate. Retrieved from https://databox.com/how-to-improve-your-ecommerce-conversion-rate

 

Walker, T. (2013, December 6). 6 of My All-Time Favorite Conversion Rate Optimization Case Studies. Retrieved from https://www.crazyegg.com/blog/conversion-rate-optimization-case-studies/

Comments

  1. Mark TietbohlApril 3, 2021 at 12:05 PM

    It is important to understand that not all conversions are not always sales. Sometimes conversions are a download or an email submission or a form fill. These are considered micro conversions and many of these may be needed to make the sale (macro conversion)

    ReplyDelete

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