No matter the traffic you get on your website, at the end of the day, conversions are the holy grail of every marketer. With the percentage of people searching Google for the phrase “Conversion Rate Optimization” now more than ever, you might be wondering what a good conversion rate for your website is. As per experts, the average conversion rate across industries is around 2-5%, but did you know that top performing websites can have conversion rates as high as 20% or more?
With the right strategy and optimization, your website can potentially convert visitors into customers at a much higher rate. Keep reading to learn more about what a good conversion rate for your website is and how to improve it.
What is a good conversion rate for websites?
A good conversion rate for a website varies depending on the industry and type of website. However, generally, a conversion rate of 2-5% is considered good, and a rate above 5% is considered excellent.
When measuring conversion rates, there is no single solution that applies to all situations. Factors such as industry, marketing channels, sales process, and product value can all affect the conversion rate.
For example, converting a low-value lead for a low-cost item may be easy; converting a high-value lead may require a more in-depth sales process. Benchmarking your website's performance against industry standards and adjusting your expectations accordingly is essential. This way, you can accurately evaluate your lead generation efforts and optimize your marketing strategy.
Now that we’ve specified that website conversion rates differ by various factors, let’s explore each.
Why do conversion rates differ by industry type?
Website conversion rates can differ by industry type for several reasons. For example, the conversion rate for an e-commerce website selling physical products may be lower than that of a B2B SaaS company website. Here are a few reasons why -
- Product complexity: Some products or services may be more complex and require more steps in the purchase process, which can lead to lower conversion rates. For example, buying a car is a complex process and may have more steps than buying a t-shirt online.
- Conversion process length: Some industries have a longer conversion process, which can lead to lower conversion rates. For example, a B2B software company might have a longer conversion process that includes multiple touchpoints and decision-makers, while an e-commerce store selling physical products might have a shorter process.
- Lead quality: Some industries may attract more qualified leads, leading to higher conversion rates. For example, a B2B software company might attract leads that are more likely to convert because they are actively searching for a solution to a specific problem, while an e-commerce store might attract a more general audience.
- Competition: Some industries may have more competition, leading to lower conversion rates. For example, an e-commerce store selling a commodity product might have more competition than a B2B software company offering a niche solution.
- Brand awareness: Brand awareness can also affect the conversion rate. If a brand is well-known and established, it can have a higher conversion rate as people may have more trust in them.
- Audience: The website's target audience can also affect the conversion rate. For example, a website targeting a specific niche may have a higher conversion rate than a website that targets a general audience.
It's important to note that these are just some factors that can affect conversion rates. The specific conversion rate for a website will depend on a variety of other factors, such as website design, user experience, and marketing strategy. Here is a general breakdown of conversion rates for different industries:
How do conversion rates differ by industry type?
- E-commerce: 1-3%. The purchase process for e-commerce sites is usually more complex and requires more steps, such as adding items to a cart and going through a checkout process.
- B2B SaaS: 5-10%. The customer journey for B2B SaaS companies is more straightforward and involves fewer steps, such as requesting a demo or signing up for a free trial.
- Lead Generation: 5-15%. These sites focus on capturing contact information in exchange for a lead magnet like a whitepaper, e-book, etc.
- Healthcare: 2-5%. The conversion rate for healthcare websites can vary depending on the type of service they offer. For example, an appointment scheduling website will have a higher conversion rate than a website that provides general information.
- Finance and Insurance: 2-5%. The conversion rate for websites in the finance and insurance industry can vary depending on their service. For example, a website for online loan applications will have a higher conversion rate than a website that provides general information.
- Travel: 2-4%. A website for booking flights will have a higher conversion rate than a website that provides general information.
Do website conversion rates differ by marketing channels used?
Website conversion rates can differ significantly depending on the marketing channels used. Here are a few examples:
- Organic search: Organic search traffic generally has a higher conversion rate than other types of traffic since users are actively searching for a specific product or service.
- Paid search: Paid search traffic can have high conversion rates, especially if the ads target specific keywords and audiences.
- Social media: Social media traffic can have lower conversion rates since users may be browsing casually and not necessarily looking to make a purchase.
- Email: Email marketing can have high conversion rates, especially if the email is targeted to a specific audience segment and the call-to-action is clear.
- Display Ads: Display ads can have lower conversion rates since users may not be actively looking for the advertised product or service.
- Affiliates: Affiliates can have high conversion rates, especially if the promoted products or services are relevant to the affiliate's audience.
You might have a feeling of, “I already know this, tell me something new,” after going through these details. However, you’ll be surprised to know that 68% of Small Businesses Don’t have a Documented CRO Strategy, even though they are familiar with this concept.
With a clear Conversion Rate Optimization (CRO) strategy, businesses can significantly increase the effectiveness of their online marketing efforts, leading to more sales and revenue. A CRO strategy can identify and address issues that prevent website visitors from converting into customers. Businesses can improve their conversion rate and maximize the return on investment for their marketing efforts.
Here are 5 killer tips on how you can improve your website’s conversion rates -
1. Make sure your website has a clear and compelling value proposition
Visitors should know immediately what you offer and why they should choose your company over competitors. By clearly stating what a company does and why it's better than competitors, a value proposition can help build trust and credibility with visitors. This, in turn, can increase the likelihood that visitors will take the desired action, such as making a purchase or filling out a form.
A clear value proposition can also help visitors quickly understand if a website is relevant to their needs, reducing the likelihood of leaving the website due to confusion or frustration. This can lead to a higher conversion rate because visitors who stay on the website longer are more likely to convert.
2. Use persuasive design elements to nudge the user
Persuasive design elements can improve website conversion rates by using psychological principles to influence visitors' behavior and decision-making. These elements include trust badges, social proof, and clear calls to action.
For example, trust badges can provide visual cues that a website is reputable and trustworthy, increasing the likelihood that visitors will trust the website enough to make a purchase or fill out a form. Social proof, such as customer testimonials or a high number of social media followers, can reassure visitors that other people have found value in a company's products or services, increasing the likelihood that they will too.
Calls to action, such as "buy now" or "subscribe" buttons, can help guide visitors towards taking a desired action by making the next step clear and easy. By providing clear and persuasive design elements, websites can increase the likelihood that visitors will convert by providing them with the necessary information and guidance to make a decision.
Also, persuasive design elements can improve the website's overall user experience by making it more visually appealing and easy to navigate, which can lead to more engagement and conversions.
3. Experiment with different web page versions with A/B Testing
Use A/B testing to optimize your website. Test different website versions to see which elements drive the most conversions.
By creating two versions of a webpage, each with a small difference, such as a different headline or button color, and then randomly showing each version to different visitors, A/B testing allows you to see which version of the webpage leads to more conversions. This information can then be used to make informed decisions about improving the website.
A/B testing allows for a data-driven approach to website optimization. It provides you with hard numbers indicating which changes are positively impacting conversion rate and which are not. This can help you identify problems with your website that you may have yet to notice otherwise and make changes that can significantly improve conversion rates.
Additionally, A/B testing can be a powerful tool to test different elements of your website, such as headlines, copy, images, and calls to action, to find what resonates best with your audience. This can help you optimize your website to align with your target audience and improve your conversion rate.
4. Optimize your website for mobile
With mobile internet surpassing desktop users by 56.89% of online traffic worldwide, mobile-friendly websites garner 15% more unique clicks than ordinary ones.
Mobile-friendly websites are optimized for smaller screens, with easy-to-use navigation and larger buttons that are easy to click on with a finger. They also adapt to the different screen resolutions and orientations of mobile devices, and ensure that all the website elements are visible and accessible on all devices.
Websites that are mobile-friendly can prevent users from leaving the website, resulting in a higher bounce rate, which can negatively impact conversion rate. In contrast, a mobile-friendly website will make it easy for users to find the information they need and complete the desired action, such as making a purchase or filling out a form, resulting in higher conversion rates.
5. Retarget users to bring them back to your website
Retargeting ads can help improve website conversion rates by bringing back visitors who have previously interacted with your website but have yet to convert. With cookies or pixels to track website visitors, retargeting ads help keep your brand top of mind and remind visitors of your products or services, increasing the likelihood that they will return to your website and convert.
Retargeting ads also allow you to show ads specifically tailored to the products or services that a visitor viewed on your website. For example, suppose a visitor viewed a specific product on your website but didn't purchase it. In that case, you can show them ads for that product as they browse other websites, increasing the likelihood that they will return to your website and make the purchase.
Retargeting ads can be used across different platforms, such as Google Adwords, Facebook, and Instagram, and also can be tailored to different devices, such as mobile or desktop, so you can reach your target audience where they are spending their time online.
Retargeting ads can be a powerful tool to bring back visitors who didn't convert and increase the chances of conversion by keeping your brand top of mind and providing tailored ads to potential customers.
RevenueHero is your CRO partner
With RevenueHero, visualize your funnel in real-time and immediately take action on anomalies. Track form conversions in real-time to help you understand what is working and what isn't. Get insights at a team, page, and router level to know what to tweak. To know more, book a demo today!