Marketing can be expensive, so it is important to make sure your marketing budget is working effectively. To increase business and profits, converting potential customers into actual customers is crucial. Websites consider conversion rates as the percentage of potential clients who make a specific desired action. Before it’s possible to assess marketing practices and make more money, it’s important to understand how to figure conversion rates and make them grow.
How to Calculate Conversion Rates
Conversion rates refer to the percentage of events leading to another desired event. In the e-commerce world, they are calculated by dividing the number of orders received with the number of times a website was visited. If a website generates $100,000 over 2,000 orders in a month where 40,000 visitors were recorded, the conversion rate is 5 percent. In other words, five out of every 100 visits make $50 in company revenue.
How to Increase Conversion Rates
After learning how to figure conversion rates, it is helpful to uncover ways in which you can increase them. There are numerous tips that will bring success.
- Add Testimonials. Customers always like to see feedback from other customers, especially when it is positive. Adding testimonials to a website is a smart way to build confidence from the public and heighten conversion.
- Use Credible Symbols. Customers want to purchase from a trusted shopping source. Placing logos of the Better Business Bureau or using secure services like Verisign will always raise conversion rates.
- Clearly Display Contact Information. All business websites should clearly display a phone number, email address, or live chat option. These encourage customers to ask questions and gain confidence in a product or service.
- Update Headlines. Headlines grab the public’s attention and are the most important part of any webpage. Having an enticing headline encourages customers to consider making purchases. To keep things fresh and attract new business, it is essential to frequently change the headlines as well.
- Offer Extended Guarantees. Customers like to know they have nothing to lose by trying new things. Elongating a product guarantee boosts confidence and increases conversion rates. Even extending a guarantee from 30 to 90 days will heighten business.
To improve a business’s conversion rates and lower bounce rates, it is important to track and follow them on a regular basis. This helps uncover things that are working well and areas that need improvement, plus it will increase your ROI on your SEO and marketing budget. Since conversion rates are directly related to sales and profits, the above tips will improve the company’s bottom line.