Website conversion rates are a crucial metric for small business owners like you, to track and understand. This metric measures the percentage of website visitors who take a desired action, such as making a purchase or filling out a contact form depending on what your end goal is. Typically this is a purchase for a product based business and a lead/enquiry/contact form for service based businesses. A higher conversion rate means that more visitors are taking the desired action, which can lead to increased sales and revenue for the business.
At a basic level, website conversion rates are important as it gives you valuable insight into how well the website is performing. By analysing conversion rates, brand owners can identify areas of the website that may be causing visitors to leave without taking the desired action. You can even dive deeper and look at specific page conversions. For example, if the conversion rate on a particular product page is low, it could indicate that the product information or images are not compelling enough to persuade visitors to make a purchase. Or perhaps the product itself needs work.
One of the most important reasons however, when looking at your website conversion rate as small business owners, is that this information can help to improve the return on your investment (ROI) of marketing efforts. This is a simple mathematical equation that many people tend to bypass. Let’s look at a quick example. If your website converts at 2% which is often referenced as an average eCommerce website conversion rate and you spend $2000.00 on Facebook ads and a 3% click through rate (666 visitors) with an AOV of $75 then you would be making roughly around $999 – not a very good return on your ad spend (ROAS).
Now say your website conversion rate sat at 5% using exactly the same spend and performance metrics as above, then you would generate around 2.5K in revenue. Even small percentage increases in website conversion rates can be the difference between making and losing money.
To optimise your website otherwise known as Conversion Rate Optimisation (CRO) there are a significant number of things you can do across your website. It could be something as simple as understanding which pages or sections of the website have high conversion rates, and focus your marketing efforts on these areas to drive more traffic and increase sales. Or as complex as watching user behaviour using heat map tools and re-engineering your website to be optimised more closely to the user journey. You can also use an array of plugins or apps to help move users to convert or convert with a higher monetary value.
Improving website conversion rates can also help small business owners to better allocate resources. By identifying areas of the website that are not performing well, small business owners can make informed decisions about where to invest their time and money.
We recommend several steps to kick off your website optimisation.
1. Analyse now (and regularly) the website’s analytics /google analytics data to identify areas that are underperforming.
2. Conduct user testing to gather feedback on the website’s usability and design. Or leverage heat maps to understand more closely the user journey.
3. Optimise the website for conversions by making changes such as redesigning pages, adding calls to action, and testing different headlines or images or landing pages by way of example.
4. Also ensure the website is mobile-friendly and fast-loading. With more and more people browsing the internet on their smartphones, it’s essential that the website is optimised for mobile devices. Similarly, slow-loading websites can be frustrating for visitors, leading to high bounce rates and low conversion rates (and google doesn’t like that either!).
If your website is not converting well or you’d like to push up the conversion rate a notch or two, The Brand Architect can help! We offer eCommerce websites a comprehensive 304 point checklist against best practice. If you want to find out more contact the team and they will happily walk you through this game changing audit.