When you have a website that sells products or generates leads, it’s important to know your rate of conversion. A conversion is considered a sale, or someone completing your digital form.
You should have monitoring and tracking software installed to get this information. Google Analytics is a common one, and Crazy Egg is another. While these systems may be set up, they may not tell you what your conversion rate is.
Look for how many people visited a particular page and then find out how many people completed that form or bought that product on that page. If you can’t find this information, contact your tracking and monitoring software for help.
Once you find this information, here’s how you determine your conversion rate. Recently I did a discovery report for a company. Their heat map tracking software on one of their primary lead generation forms revealed the following:
662 people visited the page for August 2017. Out of 662 people, 42 of the people decided to engage the form; but only half of those people (21) actually completed it.
What would be the conversion rate for that page? Here’s the formula:
The number of form completions (or page sales) ÷ total amount of page visitors x 100 = your conversion rate.
If we take the example company above’s numbers, we get 3% (rounded) rate of conversion because 21 ÷ 662 x 100 = 3%. You can do this equation not just for pages but for your entire website. With an idea of your conversion rate, you can know how your website is doing and if there needs to be some improvement.
So, is 3% good or bad? It all depends on your industry and if that conversion rate is helping meet your business’ bottom line. You have to determine what the value of one conversion is to you. Let’s say it’s $1,000.
Now, let’s times that value by the number of sales or leads you’re generating every month, and weigh it next to the cost of the website, or what you’re spending each month to maintain it.
If your website has been around for at least a year, it should be paying for itself; and you should be seeking to get your conversion rate higher every month.