Good conversion rate: an important but relative concept

Frequently highlighted as a cornerstone of digital marketing, the conversion rate (CR) should be regarded as a key performance indicator within your overall strategy. However, it’s a concept that can be tricky to interpret and should always be considered in context.

What is a good conversion rate?

A conversion rate is a metric that measures how effective an online marketing campaign is. It shows the proportion of people who have completed a specific action compared to the total number of visitors to your website or mobile app. To calculate it, divide the total number of conversions by the total number of visitors, then multiply by 100 to get a percentage. For example, if your website receives 100 visits in a week and you achieve 11 conversions, your CR is 11%.

Different types of conversions

A conversion isn’t just about making a purchase online. While that’s often the case for ecommerce sites, you may have other objectives. In short, a conversion is whatever action you want your visitor to take. This could include:

• Buying a product or service
• Subscribing to a newsletter
• Downloading software or an e-book
• Completing a survey
• Calling your business
• Requesting a quote

Your conversion rate doesn’t have to be limited to a single metric. If your aim is for visitors to both subscribe to your newsletter and buy your product online, then the conversion rate covers the whole process.

The benefits of a high conversion rate

A high conversion rate is a strong indicator of business success. The advantages are numerous: increased profits, greater visibility in your market, and higher customer satisfaction and loyalty. Achieving a strong return on your marketing investment allows your business to grow sustainably, reach a wider audience, and compete more effectively. Ultimately, the main benefit is the ability to boost profits through successful conversions, which drive overall business performance. In summary, the benefits of a high conversion rate include:

• Higher profits
• Greater customer satisfaction and loyalty
• Increased website traffic
• Lower cost per conversion
• More diverse customer acquisition channels
• Time and cost savings on targeted advertising campaigns

To help you maximise your conversion rate, Incremys offers a range of innovative modules tailored to your needs: Discover Personalised AI to enhance user experience, and content production to increase the relevance of your pages and improve your conversion performance.

Conversion rate and SEO: two closely linked concepts

Conversion rate and SEO are closely connected. The conversion rate is a key performance indicator (KPI) for both organic search (SEO) and paid search (SEA). To accurately assess your online marketing performance, it’s important to distinguish between SEO and SEA conversion rates. When we talk about the SEO conversion rate, we’re referring specifically to the traffic generated by organic search. Generally, conversion rates from SEO are higher than those from SEA. If you achieve a top position in search results, it’s because Google believes your content matches the user’s search intent: not only does this bring more visitors to your site, but it also means higher quality traffic. This increases your chances of conversion, which in turn boosts your conversion rate. It’s a virtuous circle.

Improving your conversion rate: at what cost?

Improving your conversion rate may seem essential, but you must consider your return on investment. Imagine that in one month, 100 visitors come to your site and your conversion rate is 5%. The average order value is £50. That means each visitor is worth (5x50) / 100 = £2.50. This is the value of a visit, which you should compare to the cost of attracting that visitor. By comparing the two, you can decide whether it’s worthwhile to invest further in improving your conversion rate under the same conditions.

Good conversion rate: a relative concept

“What is the average conversion rate?”, “What is a good conversion rate for ecommerce, Google or email marketing?” – these are common questions when developing a digital marketing strategy. Unfortunately, there’s no absolute answer, as the reality is more nuanced and complex than it might seem. Average and median conversion rates can vary widely depending on your sector. You also need to consider your average margin: if you sell the latest tech at a much lower price than your competitors, your conversion rate will soar – but at the expense of your margin. Retention rate and average order value also affect the real value of a conversion. As you can see, it’s a very relative concept, but here’s a useful rule: if you’re not fully satisfied with your site’s usability, the quality of your content, or your commercial offer (if you sell products or services), then you have room to improve your conversion rate.

Some examples

According to a study on Google Ads conversion rates, the median conversion rate in 2022 was 2.35%. However, this figure covers all industries. As shown below, there are significant differences. Even within the same sector, one in four companies achieves twice the average performance, and one in ten achieves five times the average. Unsurprisingly, there are also notable differences between industries:

• Median ecommerce conversion rate: 1.84%
• Median legal conversion rate: 2.07%
• Median B2B conversion rate: 2.23%
• Median finance conversion rate: 5.01%

These figures relate to Adwords conversion rates. Median values for landing pages optimised for SEO are generally higher.
When considering how to interpret a conversion rate, look at your sector, then set your short, medium and long-term KPIs objectively: if being at the median is the minimum, what rate can you realistically aim for in the near future?

Ways to improve your conversion rate

There are several ways to improve your conversion rate: use performance analysis tools such as Incremys or Google Analytics to understand your visitors’ behaviour and interests; promote your product or service through social media and online advertising; provide an intuitive and engaging user experience; offer a range of secure and convenient payment options; and streamline the purchasing process with simple, quick and user-friendly steps. All these actions can help significantly increase your conversion rate.

In conclusion

The conversion rate is a key indicator of business success, and it’s essential to use analytical tools to better understand your audience and optimise your results. Multichannel marketing strategies, an excellent user experience and careful ROI calculation are all necessary to encourage users to take action on your website or app.

SEO and Digital Marketing Knowledge Base