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Conversion rate optimization (CRO) is one of the goals of all marketing campaigns. Various metrics are used to evaluate the effectiveness of your paid ads and blog posts.
Conversion rate is one of the most effective metrics for determining the performance of a marketing campaign. You can use a number of conversion rates to determine the success rate of your efforts.
Continue reading to find out more about measuring conversion rates. What exactly is the conversion rate?
A conversion rate reflects the proportion of users who complete a targeted action compared to the number of people reached by a marketing effort. It refers to the number of conversions per visitor to your site; in paid advertising, it refers to the number of conversions per click on an ad.
You can use the conversion rate to find out how many people are taking the desired action.
Want to know what conversion rates to track? To better understand your marketing, the following are some conversion rate metrics:
First, take a look at your click-through rate (CTR). In other words, how many people click on your site’s links when they come across them. CTR may be used in email marketing, paid advertising, and organic search.
Remember, CTR is not just the number of people who visit your site. It’s about the number of people who click on links to your site compared to the number of people who saw it in the first place. For an email campaign, it’s the number of people who open your email newsletter.
This gives an idea of the effectiveness of off-site marketing in bringing people back to your site.
Cost per conversion (CPC) measures how much you pay for each conversion.
Consider the following scenario: you run a paid search ad for a month. So, to find out the CPC of an ad, you need to know the total cost. Then divide that by the number of conversions.
The CPC can help you determine which marketing materials are worthwhile and which are not. Even if two ads generate the same number of conversions, the CPCs will change if one costs more than the other.
Return on investment (ROI) measures how much money you make from marketing.
For example, the ROI of an email marketing campaign is calculated by subtracting the costs of the campaign from the revenue generated from it.
Naturally, you want a positive ROI since it means you’re spending less on marketing and generating more income. A negative ROI suggests you’re losing money on the campaign; therefore, halt or change it.
The new visitor conversion rate focuses on visitors who are coming to the site for the first time.
The conversion rate of new visitors into purchases is usually low. To begin with, first-time visitors are least likely to make a purchase – they need to get to know your brand before they make a purchase.
Purchases are not always conversions. This metric is great for measuring first impressions, for example, email sign-ups.
The returning visitor conversion rate is the inverse of the new visitor conversion rate. This metric measures the conversion rate of repeat visitors to your site.
This rate should be higher than the conversion rate of new visitors. If they are the same, then your site has a problem.
If you mix these two indicators, you can get a wrong idea about the conversion rate. You may be converting a large number of returning people, but adding new visitors can skew that figure.
Average time on site is another useful metric to study. You can use this metric along with the conversion rate to find out how long users stay on your site.
This number gives you an idea of how fast visitors convert.
If your conversion rate is high and your average time on site is low, it indicates that you’re providing enough information to encourage people to convert. Visitors who spend more time researching your product or service to determine if it’s right for them have a higher conversion rate and spend more time on your site, according to statistics.
If both are low, people will quickly leave your site without converting, so you may have to make changes to keep them on the site.
In addition to the last metric, it is useful to know how many visitors stay on your site. Some visitors may go to a site, immediately find that it doesn’t have what they’re looking for, and leave without even looking at it.
Your bounce rate measures this behavior. A high bounce rate indicates visitors leaving your site quickly, whereas a low bounce rate means visitors staying longer.
A high bounce rate indicates either poor content or a slow loading site. Your site may need to be improved to increase usability and conversion rates.
It depends, of course, on the circumstances.
Seologic can help you track conversion rates.
Not sure where to start with conversion rate optimization? Let Seologic take control! We have more than 8 years of experience in digital marketing and can take your campaigns to new heights.
All of the above conversion rates and more can be improved with our CRO services. You’ll also get a personal account manager to help you with everything.
Call +13478979960 or contact us online.
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