This is more important to know what conversion rate is before knowing about the meaning of increasing conversion rate.
In the easiest word, conversion rate is the percent of visitors who take a specific action that you want from the visitors to take. The process of increasing the rate of people taking action is called increasing conversion rate.
Just increasing the number of people taking action is not increasing conversion rate, you have to increase the percent of taking action.
Calculation of conversion rate
There is a very easy calculation method to find out the conversion rate. This is a simple math.
Conversion rate is the rate between the total number of visitors to a particular page and the number of specific action taken by the visitors that you want form the visitors to be taken.
For example, one of your landing pages gets 100 visitors a day and your collected email is 25 a day then your conversion rate is (Conversion/Total Visitors) × 100. Here is your conversion goal is email collection.
The math will be (25/100) × 100 = 25%. So, your conversion rate is 25%.
So, from this discussion it became clear that another name of conversion is achieving goals. Different companies can have different goals as well as different conversion points.
What are the different conversion goals?
I have given an example conversion goal above that is “email lead collection”. But it is not only one conversion goal. There are various types of conversion goal can be according to the business types and strategies. I am giving some examples of conversion goals with business types.
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What is the importance of increasing conversion rate?
Conversion rate is directly related with the profit of your business whether it is b2b, b2c or affiliate marketing business. Low conversion rate indicates that you are at loss or low profit.
Suppose your conversion goal is collecting leads. Now, if you bring traffic to your site from paid ads then a lead can be achieved at the lowest price only when your landing page is capable to generate the highest conversion rate.
From the math you can see the difference
You increase your conversion rate up to 10% then you will get 5 leads at the same cost. If you get 5 leads then your cost per lead is 5$.
You are not only saving money but you are making the possibility of getting more profit. So, increasing conversion rate is actually increasing your profit. Profit is the primary object of a business.
If you are working with free traffic then low conversion rate is killing your valuable time and effort and definitely preventing you from getting more profit. So, increasing conversion rate is important for both paid and free methods.
What is the best conversion rate?
At the time of creating this info-graphics, I discovered that there is no such thing called best conversion rate but I have noticed from a reliable source that if you are on professional and finance service niche then 10% conversion rate is a good conversion rate for this industry.
You can see in the picture that marketers are so confused about good conversion rate. Actually, every industry can’t generate the same amount of conversion rate and different industries have different types of customers.
You can see in the picture that, conversion rate is varying with the industries. According to the information of the picture it can be said that, if you are on higher education industry then more than 2.6% conversion will be good for you.
The article "what is the best conversion rate for a website" has discussed about difference between conversions of various types of website that will make you a special person who know specially about conversion rate.
How to increase conversion rate?
There are various reasons for peoples to convert. There are several psychological terms for increasing conversion rate. It demands several articles to cover “How to increase conversion rate”. Sometimes a slight change can make a huge difference in conversion rate on the other hand you may have to do a lot of things to increase your conversion rate.
Since conversion rate is the most important matter for a business, we have taken it very seriously. That’s why we create articles to give you the core solution, so that, you can cross the peak in terms of your conversion growth with our articles.