One simply can’t prove that business marketing efforts are paying off without measuring conversion rate metrics. Just like financial documents let you track your financial history, project future revenue, and have accurate records for tax purposes, several conversion rate metrics let you understand if your marketing campaign is actually worth its weight in gold.
A lot of businesses, especially those who are new to the whole digital marketing scene, have no idea which conversion metrics they should check to track whether they are reaching their marketing goal. That’s why we are here to help them out!
In this blog, Upreprots – the leading digital marketing agency in India – will tell you about 7 important conversion rate metrics that one should keep tabs on when running business marketing campaigns.
But before talking about those conversion rate metrics, let us understand the meaning first!
What is Conversion Rate?
Conversion rate is basically a measurement of total users that ended up completing a required action proportionate to the total people your business reached with its marketing campaign. Put simply, the average number of conversions per ad interaction is shown in the form of a percentage.
Still don’t get it? Here’s an instance! If your business website received 200 visitors over 30 days and made 50 sales, your conversion rate is going to be 50 (divided by 200 or 25%)
This measurement is extremely useful for businesses to check how many people complete the action they want them to perform while running a business marketing campaign. The conversion rate will allow them to lower their customer acquisition costs by acquiring more value from users they already have.
By optimizing your business marketing campaign’s conversion rate, you can also increase revenue per visitor, acquire more customers, and even grow your business.
What Conversion Rate Metrics Should Businesses Check?
Now that you are aware of the meaning of conversion rate, it’s time to discuss the conversion rate metrics. Almost anything in the marketing campaign can be tracked as a conversion by brands and businesses. However, only a trickle of them carries more weight than others.
The most important conversion rate metrics that businesses should be measured are as follows:
#1 Click-through rate (CTR)
We all have clicked on an advertisement while browsing a website (say Facebook, Google, or any third-party site). Who didn’t? The percentage of users that click on a specific advertisement appearing on a web page of a specific website is called the click-through rate (CTR). This conversion rate metric is used in advertising to measure the potency or success of an online marketing campaign.
In simple words, CTR helps a business measure how effective its ad has been in seizing users’ attention and how many of them have actually clicked after encountering it. This conversion rate metric can be measured by dividing the number of actual clicks on your ad or SERP listing by the total number of impressions.
One can use CTR in email marketing campaigns, paid advertising, and organic search.
Useful click-through rate booster tips to consider in 2022
#2 Return on Investment (ROI)
Let’s say you are buying a smartphone worth $1000. At such a price point, it is obvious that you are expecting it to have a better camera, good processor, and AMOLED screen. You may even assure yourself by saying, “Hope it will be worth my investment”. Put simply, you are expecting a return on your investment.
In the online advertising world, Return on Investment (ROI) is a conversion rate metric that lets you check out how much profit you are making back from the current campaign. It helps you measure the effectiveness of your marketing campaign and let you see how much revenue it has generated for your business.
Business owners can measure the ROI of their marketing campaign by subtracting generated revenue from the total money spent on the campaign. Make sure your ROI has a positive figure. It depicts that you’re spending less on your campaign and getting more revenue in return.
#3 Traffic sources
Not many digital marketing experts talk about this conversion rate metric. They instead tell you to focus on increasing traffic while running a marketing campaign. Of course, increasing traffic is crucial but it isn’t as important as a lot of businesses think when it comes to conversion rate metrics. The matter here is not how many users visit you but how exactly they assist you in acquiring your campaign goals.
This means that you need to understand where traffic is coming from. There are three primary sources of traffic:
- Direct visitors: They visit your site directly by typing your website’s URL in the address bar.
- Search visitors: As the name suggests, search visitors find your business through a search engine like Google, Bing, and Yahoo.
- Referral visitors: Those who come across your business website by clicking a link from somewhere else, say another website or social media page are called referral visitors.
Different types of traffic have different engagement levels. Track each traffic source thoroughly and note down which one is doing the best. Just make sure you are getting traffic from a diverse number of sources while running a marketing campaign.
#4 Cost per conversion (CPC)
One of the most important conversion rate metrics one can calculate. Cost per conversion (CPC) helps you measure the aggregate cost involved in taking an action that leads to a successful conversion and sales to be more specific.
Also known as cost-per-action, pay-per-action (PPA), or performance-based advertising, it is a great way to dope out what marketing materials are beneficial and which ones are costing you more money than worth. It will help you decide whether your marketing campaign needs to be updated or not.
In order to measure a business advertisement’s CPC, get to the bottom of the total amount spent on it first. Divide it by the number of conversions driven by the advertisement later.
#5 New visitor conversion rate
The whole idea of running a marketing campaign is to attract new customers. Our next conversion rate metric is related to that! The new visitor conversion rate looks specifically at first-time visitors to your business website. It will tell you about potential customers who are likely to buy your product or service.
Unlike returning visitor metric that tells you the conversion rate amongst site visitors who visited your website previously, it tells you about first-time visitors who are taking their time to familiarize themselves with your brand before buying anything from you.
#6 Bounce rate
Imagine you are representing your work of art in an art exhibition. Some people may feel like having a magical encounter with another mind and will adore your art for minutes while others simply fail to create a connection at all. Websites work just like that. Some people may find things of interest on your site while others leave it without even so much as scrolling.
The bounce rate metric helps you monitor their behavior. It is defined as the percentage of visitors that leave a webpage without taking an action like clicking on a link, filling out a form, or making a purchase. A low bounce rate means people are sticking around your site. High bounce, on the other hand, means a lot of people are abandoning it as soon as they arrive.
Adjust your website design and content if a lot of people are bouncing. Delivering a better experience will definitely provide better conversion rate marketing results.
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#7 Average time on site
Another important conversion rate metric for businesses. Average time on site tells you how long users stay from the moment they visit your website. It gives you signs of how quickly people convert into potential customers. Average time on site should be viewed alongside conversion rate.
Having a high conversion rate but low average time on site indicates that your business is dishing out enough information to the converting users. Having both metrics as high means your visitors are spending more time reading up on your blogs, products, and services to decide if they are right.
Make certain that both average time on site and conversion don’t get low. Having both metrics low indicates that visitors are leaving quickly without converting. Make timely adjustments to your marketing campaign in order to make users interact for a longer span with your website.
Above are some important conversion rate metrics to check while running online marketing campaigns for your business. The ability to measure conversions is a crucial part of any marketing campaign. And these metrics will help you determine if your business is accomplishing its marketing goals.
We highly recommend you hire a team of digital marketing experts if nothing makes sense. With years of experience, Upreports will help you take your marketing campaigns to new heights.
Got any queries to ask? Send them to firstname.lastname@example.org and have them answered by our digital marketing professionals.
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