What is a Good Website Conversion Rate?
The $64,000 question! The real answer is "It depends"; which is not very helpful! But there are other ways to think about your website's conversion rate (CR) to ensure that you are on the right track.
Firstly, let's ensure that we understand what CR is. CR is the number of conversions divided by the number of visitor sessions. A conversion is simply an action that you want the visitor to take, like making an online sale or filling in a contact form. It may or may not have a direct monetary value.
So if an online store has 10 sales and 200 visitor sessions then the CR is 10/200 = 5%
The second thing to consider is that most visitors will not convert on any given day. Some visitors will enter your website and immediately exit, some will be researching today with no intention to transact. Some may be your competitors checking you out. Whatever the business or situation the vast majority of visitors won't convert at this time. So in general we will be talking about a CR below 10% for an entire website.
But there is a long way between 0 and 10% so how do we know how we are doing? To be honest I have been in the online business for over 20 years and I have never seen a really useful definitive guide to CR across industries, for example. So I have given up worrying about a particular website CR vs another. That is not to say that I don't have a good idea when CR is low or high when reviewing a website and this is a useful starting point.
So what factors can influence CR? Of course, there are many but here are some main ones;
The price of what you are selling - high price = lower CR and vice versa.
How niche your product or service is - very niche then higher CR, very general then lower CR.
How well trusted your brand is - high trust = higher CR
How well priced your product or service is vs the competition - well priced = higher CR
How much traffic you have to your site - higher traffic can lead to lower CR, lower traffic can lead to higher CR
Easy to use website = higher CR, hard to use = lower CR
And so on, there are lots more factors and they all work together to give you your overall CR.
If CR is affected by so many things then how do I know if my website's CR is any good? Well, as mentioned, a seasoned online expert can definitely help but it would not be an exact science by any means. But let's look at CR another way.
Does your CR support scalability for your business? Generally as you add more traffic to your website, its CR gets harder and harder to maintain. So if your current CR does not support scalability then we have a problem.
To illustrate the point I am making it may help to look at some numbers. We have a business with a CR of 3% and 100 visitors a day to its website, so 3 conversions per day. Let's assume that the conversions are enquiries about accountancy services. Let's further assume that the business spends £100 per day in marketing its website. So, in simple terms, each enquiry costs £33.33 to get. If we convert 1 in 3 of those enquiries into business and the business gets £200 for every converted enquiry in revenue then the following applies;
Cost per enquiry £33.33
Profit before overheads is £200-£100 = £100
Now if the work from the booking takes 2 hours to complete and the cost of the staff member is, say, £25 per hour then we have £50 in costs to deduct. This leaves a £50 profit before other overheads such as rent, rates, phone, electricity etc. So we then need to ask ourselves if this is enough? Do the numbers make sense? If they don't or they are marginal then we need to figure out what numbers do make sense so that we can plan where we need to get to.
It is so important to get these fundamentals right in any business. Take the metrics from your website as described and work out what combination of visitors, CR, conversions, bookings etc make sense for your business and take it from there.
Of course, every business wants to increase the CR of its website. This is where Digital Mentor comes in and for a low cost monthly subscription you can get expert advice on how to increase the conversion rate for your website. Find out more about the plans here.