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Conversion rate is one of the key indicators in online commerce
Every business owner who invests money in promoting their business expects to get real customers, and with them, profit. One of the key measures of success in e-commerce, including dropshipping, is the conversion rate. It determines which advertising and marketing efforts are effective and pay off, and which are a waste of money. What to look out for when working with this indicator was explained by experts from the company 'Tredittex Solution'.
Conversion Rate (CR) is an indicator that shows the ratio of targeted actions to the number of visits to the site. The formula used to calculate it is: number of targeted actions / number of visits x 100%. If 100 users visit your website and 3 of them make a purchase, this means that your conversion rate is 3%.
Your online shop is visited by users every day. One was looking at the catalogue, the second was looking at laptops and the third came to buy a product because he had bookmarked the page. There may be many such users, but not all of them will take targeted action. According to statistics, in most areas only 2-3% of users who visit the site take a targeted action: leave their contacts, request a callback, put the goods in the basket or make a purchase. The type of service, the price, the field of activity, the channel of attracting the traffic - all this influences the conversion rate, so it is impossible to define a single norm for all products.
Conversion Rate (CR) is an indicator that shows the ratio of targeted actions to the number of visits to the site. The formula used to calculate it is: number of targeted actions / number of visits x 100%. If 100 users visit your website and 3 of them make a purchase, this means that your conversion rate is 3%.
Your online shop is visited by users every day. One was looking at the catalogue, the second was looking at laptops and the third came to buy a product because he had bookmarked the page. There may be many such users, but not all of them will take targeted action. According to statistics, in most areas only 2-3% of users who visit the site take a targeted action: leave their contacts, request a callback, put the goods in the basket or make a purchase. The type of service, the price, the field of activity, the channel of attracting the traffic - all this influences the conversion rate, so it is impossible to define a single norm for all products.
Types of conversions
Conversions can be divided into macro conversions and micro conversions. The former include results for basic targeted actions such as
Micro-conversions are intermediate actions that are also targeted, but less significant compared to the main tasks. Examples include: adding a product to a shopping basket, clicking on a link, subscribing to a newsletter.
What conversion rates are for
Conversion rates show how effective your marketing is. By tracking and changing conversion rates, you can influence the effectiveness of your online store and the financial performance of your business.
Conversion rate research allows you to
Which conversions can be tracked
To calculate CR, you need to define what user behaviour is considered a target action or conversion. This could be filling out a form, registering, buying a product, making an enquiry or placing an order, clicking on a landing page and so on.
Tracking the conversion rate at different stages of a visitor's interaction with your online store helps to identify problems that have prevented a potential customer from becoming a real one: pages take a long time to load, no product description, bad photos, too many fields in the checkout form, the manager was unable to answer a question, etc.
Conversion is a fundamental performance indicator in internet marketing. Attracting a target audience to a website is an expensive and time-consuming task. And if the CR is low, it turns out that money and effort have been wasted. In the following materials on the Credittex Solution blog, we'll look at ways to increase conversion rates.
Conversions can be divided into macro conversions and micro conversions. The former include results for basic targeted actions such as
- Buying a product;
- Ordering a service;
- Contacting managers by phone;
- Sending an enquiry via a feedback form;
- Registering on the website.
Micro-conversions are intermediate actions that are also targeted, but less significant compared to the main tasks. Examples include: adding a product to a shopping basket, clicking on a link, subscribing to a newsletter.
What conversion rates are for
Conversion rates show how effective your marketing is. By tracking and changing conversion rates, you can influence the effectiveness of your online store and the financial performance of your business.
Conversion rate research allows you to
- Increase your return on investment in advertising and promotions;
- Analyse the process of interacting with people and identify weaknesses in the sales funnel;
- Measure the impact of innovations.
Which conversions can be tracked
To calculate CR, you need to define what user behaviour is considered a target action or conversion. This could be filling out a form, registering, buying a product, making an enquiry or placing an order, clicking on a landing page and so on.
Tracking the conversion rate at different stages of a visitor's interaction with your online store helps to identify problems that have prevented a potential customer from becoming a real one: pages take a long time to load, no product description, bad photos, too many fields in the checkout form, the manager was unable to answer a question, etc.
Conversion is a fundamental performance indicator in internet marketing. Attracting a target audience to a website is an expensive and time-consuming task. And if the CR is low, it turns out that money and effort have been wasted. In the following materials on the Credittex Solution blog, we'll look at ways to increase conversion rates.
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