Conversion rate optimisation is a term we hear a lot in digital marketing – it’s where the entire scope of your strategy turns into real returns. How can you tell if your conversion rate is acceptable, or if you’ve still got room to blossom? There are three main factors, each of which branches off with its own variables.
Some sources may lead more quality traffic to your site than others, giving you a better conversion rate. Conversion rate experts always start with a powerful PPC campaign on Adwords, because you can show very specific ads to specific groups of people who are highly likely to be interested by your offer, and maximise your traffic. On the other hand, other online advertising techniques like banners are less refined, and less likely to channel the same quantity (or quality) of traffic. The other factor that separates these two is cost. PPC campaigns can cost you more, as you’re ‘paying per click’, where the more consequential forms of online advertising are cheaper. Your traffic costs and sources can affect your conversion rate, and will help you to see if there’s room for improvement.
Look at your CPA – the amount that it costs you for that conversion. If your advertising cost is $50 to receive 100 visitors, of whom 10 download your free e-book, then your CPA is $5. Now, if nobody wants these e-books but two people add their names to your email database, your CPA is $25. With this in mind, we need to see where these customer interactions turn into sales. Your maximum CPA depends largely on when you’ll complete the sale – for example, while the e-book CPA is 20% of the email database, the conversion rate of the email database may be 15x higher than the conversion rate of e-books. The cost of these leads correlates to the quality,
Current Rate And Goals:
As we saw above, each of your varying offers have different conversion rates. Usually, the more interest or commitment that your visitor shows (from entering their email address, to making an appointment, to becoming a member), the more quality you can expect from their lead – although you are less likely altogether to convert them in the first place. When it’s all said and done, the bottom line is always the bottom line. So do you have the sales to show for it? As your website or brand grows, you’ll find more ending up in your marketing budget to help you to find more traffic, where you can maximise your sales. A new business might be focussing on Adwords campaigns and SEO, to garner brand awareness and interest, but once you’ve generated this you’ll probably redirect your efforts to other advertising.
Your conversion rate should be where you can see the rewards of your hard work coming together, but you can only see the true value if you are carefully analysing and reviewing your data. Without a clear understanding of where your budget is going and how it’s working for you, it’s difficult to see where you can improve. For conversion rate optimisation services, our digital marketing gurus can show you exactly where your brand can sharpen up (and where to stop wasting your money). Dilate Digital is a Perth-based marketing agency, with conversion optimisation experts ready to boost your business.