Why Is Your Conversion Rate Important?

Do you have a business website?

Is it gaining enough traffic and conversion rate?

If your answer is “No,” then finding this article is a good thing for your website especially for you.

In case you are now wondering and interested, then let me do some explanation and make things clearer for you.

What is conversion rate?

To put it simply, a conversion rate is when internet users visit your website and do the things that you want them to do like signing up and registering to your site, subscribe to your newsletter or even purchase a product or pay for a service in it.

It is the actions they make within your website aside from just reading and looking around. It is the percentage of successful transactions versus the number of visitors to your site in a given period.

As an example, you spent some good money to build a website, made it look the way you want and had it live before you knew it. After a while, you had 10,000visitors, and 100 of them paid for a service or bought something from your site.

To translate it in a conversion rate language, it is 10,000/100=1%.

That 1% is your conversion rate. That may look small compared to 10,000, but that is a good sign that your site has a potential to get a positive ROI (Return on Investment) shortly—that is if it improves or at least maintained.

Why is it important?

So you could plan ahead

If you know your conversion rate, you will have an opportunity to take proper action for your website. If it is a low percentage, you know that you must be doing something wrong or not doing enough. Therefore, you can change your strategy or take a different approach to make the conversion positive.

It makes financial sense

Being aware of your financial growth makes a whole lot of difference for a company.

Say you started off with just 10% growth in the first quarter of the year and then another quarter gets you 20% more. It indicates how well your company is thriving and knows that you are doing a good job.

Be the first to make a move

Knowing your conversion rate can make you monitor the market and trade’s movement. That means learning what the consumer’s wants and needs and also the things that do not appeal to them.

It gives you the advantage of making an early move right even before your competitor realizes it.

In business, being the first gets you the best parts and bits in the market.

So you can balance the expenses.

As I have mentioned, awareness is an advantage. That also includes the knowledge to which you will know whether to invest more in ads, marketing department and other commodities of a website for better traffic and design.

Make sure to also arm your website with Google Analytics for you to determine how much visitors you get every month and compare it against your revenue or the number of visitors that made an action or purchase.

Also, you must have a proper conversion funnel. It is a direction or a path of pages that which leads the visitor to the page where they can be converted into a buyer. It looks more like this pattern:

Homepage > Contact > Success page.

(A visitor lands on your homepage, click a marketing page, sends to another page that invites him to fill-up a form and finally confirms submission or success as we call it.)

So, if you have a website, you have to be in control and in-the-know regarding your traffic and your conversion rate, we recommend using clickmagick.

It is not enough to just post something, and expect to have revenues in no time. You have to know the comings and goings of your traffic, so you will know if you need to improve, fix or maintain something within your website.