Why are conversion rates important?
- It’s a universal metric for success
- Rising online competition
- The high cost of digital marketing
- It can help save you money
- Short consumer attention span
In the world of digital marketing and e-commerce, you may have encountered the term ‘conversion rate’ fairly often. If you didn’t already know, conversion rate pertains to the rate at which your online visitors and prospective customers complete the desired action.
For example, every time you employ the use of a WordPress survey tool on your website, the action that is desired is your online visitors answering the survey. If you have 10 website visitors a day and 5 of them answer it, then your conversion rate is 50% (the number of conversions divided by the number of visitors multiplied by 100).
The higher the conversion rate, the better it is for you and your online endeavors. This is why experts have long considered conversion rates as the most important metric in digital marketing.
A general explanation might familiarize you with conversion rates, but familiarity might not be enough in this digital age where business models are continually changing to accommodate a strong online presence amidst the e-commerce boom. With that in mind, here are 5 more reasons why you should be paying more attention to your conversion rates.
It’s a universal metric for success
Conversion rates by nature are straight-forward. The saying “the more the merrier” is an apt description. It is a universal metric of success because conversions usually mean you are doing the right things with regards to your online strategies and website optimization. Just one look at your conversion rate as well as comparing it to your benchmarks, you will already know if you need to make improvements if not overhaul your approach to digital marketing.
Rising online competition
Moving on to more specific reasons, online market competition is getting fiercer than ever. More and more retail and e-commerce sites are trying to fight over the same amount of customers. The implication for you is that you have to be competitive at every stage of digital marketing from attracting customers to eventually making a sale. To do that, you need to have a website that is more ergonomic, efficient, and pleasing to use than your competitors’ website. Check your conversion rates to see if you need to make improvements to stay ahead of your rivals.
The high cost of digital marketing
As the demand for digital marketing rises, the costs are also rising. That is to say, maintaining a strong online presence is not going to get cheaper which means every single thing you do to market your products and services online counts. One of the worst things that could happen is you spending loads of funds and other resources only to get a meager return. Paying attention to your conversion rates will inform you if you are making good investments. If your rates are low and your expenditure on online marketing is high, then it’s time to switch it up or cut some costs.
It can help save you money
Concerning the previous entry, once you decide to make a change to your conversion rate optimization (CRO) strategy, you can then save some money. This is because there are many cost-effective ways to increase your conversion rates. You may not be aware of some of these methods just yet, but hopefully, the knowledge that your rates are low will be enough to push you to research and find new ways or adopt approaches you have previously overlooked.
Short consumer attention span
Incorporating recent findings in the field of psychology, studies have proven that the newer generation of consumers has shorter attention spans than their older counterparts. However, what does this mean for your online marketing endeavors?
A shorter consumer attention span means you have a shorter time-frame to turn your website visitors into conversions. This is more apparent now since smartphones and computers are more popular with the younger generations like millennials and subsequent generational categories.
If the average user cannot find what they need in a short amount of time, then the chances of them sticking around and purchasing your product or availing your services are considerably lowered. This makes accessibility and availability more important than price point or quality especially if the difference in price and quality, for your competitors, is just marginal.
This makes paying attention to your conversion rate important because the short attention span of your visitors could be the reason why it is low. Improve your website’s quality through better conversion rate optimization. Use a WordPress survey tool to know your website’s visitor demographics and make the necessary changes from there.
If it cannot be stated enough, understanding your conversion rate can be the key to having a bigger online presence and consequently a more successful digital marketing strategy that will lead to more profits for your business. In that regard, a little diligence can go a long way so remember to pay more attention and treat your conversion rates with utmost importance.