Conversion Rate – a key figure in online marketing
The Conversion Rate (CVR) shows the ratio of conversions (e.g. purchase) to metrics such as Ad Impressions, clicks, etc. The Conversion Rate, along with Response, is another performance metric in online marketing and is always given as a percentage. The formula is: Number of transactions / Number of visits x 100. The higher the value, the better.
This means in a concrete example:
An online store offers its products for sale through a Display Campaign. To check if the measure was successful, a landing page was set up before the campaign started. The number of orders could be tracked exactly through this landing page (Landing Page = Target Website).
5,000 visitors clicked on the ad and landed on the landing page. 100 visitors then made a purchase. In this case, the Conversion Rate is 2%. 100 (Number of transactions) / 5,000 (Number of visits) x 100.
An increase in views of a website does not necessarily mean higher sales. One reason for unproductive traffic could be that the website’s offer does not meet the visitor’s expectations. For example, a promoted product should not already be sold out, or if searching for men’s fashion, visitors should not be confronted with suppliers offering mostly women’s products. In this case, while the visitor numbers may be high, the wrong target group was addressed, and the revenue goal will not be met, leading to a low Conversion Rate accordingly.
Ways to increase the Conversion Rate
In e-commerce, the Conversion Rate can often be increased by optimizing website usability. The goal is to offer the user a user-friendly website where they can easily navigate and experience a fast and clear ordering process. Additionally, trust seals can help increase the Conversion Rate because they convey trustworthiness and give customers a good feeling when entering their address data. As part of an online campaign, it is important to ensure that the website is optimized to make the purchasing process a pleasant consumer experience.
Your contact for a better Conversion Rate
There are many different types of conversions. It could be the purchase of a product, signing up for a newsletter, subscribing to a service, or downloading a brochure. Since each campaign has its own objectives, it is important to define them before starting the campaign, identify the target audience, and set a target cost per order (CPO). Only in this way is it possible to optimize a campaign and improve performance metrics such as the Conversion Rate.
It’s best to speak with Tanja Hensler, our online specialist. She will gladly show you how to improve the Conversion Rate of your online campaigns and avoid mistakes in customer acquisition (hensler@trebbau.com, Tel.: 0221/37646 – 330).