With the ever-increasing dominance of the internet, small businesses as well as big companies, are doing all it takes to tap into the lucrative online marketplace. Many have jumped into the digital marketing bandwagon in hopes of driving traffic to their websites and hitting their marketing goals.
While it’s important to increase traffic to your website, it is equally important to have those visitors turn into potential business leads or customers. That’s the end goal and without that happening, spending thousands of dollars into digital marketing can strain the business.
That is where the idea of ‘conversion rate’ comes from. It’s an important metric in digital marketing and the goal of this article is to explore what it means and how to influence it. eCommerce website design in Singapore has become a popular method to increase conversion rates.
What is Conversion Rate?
Conversion rate is the percentage of visitors to the website that complete an intended action. In mathematical terms, it can be expressed as.
Conversion rate = Number of converted visitors/Total number of visitors x 100
As an example, let’s say you get a reliable company that does eCommerce website design in Singapore to help develop an eCommerce website where you sell clothes. You then engage the services of a digital marketing consultant in Singapore to get people to buy clothes from your website. After implementing a digital marketing campaign, of the 1,000 visitors you had, only 30 eventually purchased the product. Your conversation rate will be determined as 3%.
Conversion rate plays a crucial role in digital marketing campaigns because it enables you to monitor how your actions are driving results for your business. A high conversion rate means the campaign is a success. This is the goal when hiring a digital marketing consultant in Singapore.
Is the conversion rate all about tracking sales?
While making profit is the eventual goal of any business, the conversion rate can be used to track other actions. That is why our definition of conversion rate included the phrase ‘intended actions’. Asides from generating purchases, other intended actions you might be expecting from potential consumers include:
- Subscribing to your email list
- Filling and submitting an online form
- Calling your business
- Downloading a resource from your website…. and many more.
However, the general idea remains the same.
Evaluating conversion rates
As you now know, the conversion rate is just a single number. How do you make sense of it and how can you tell if it’s too high or too low? Unfortunately, there is no clear cut benchmark of what constitutes a great or mediocre conversion rate. That is due to depending on a variety of factors. Let’s just examine two to pass the point across:
Industry
Let’s go back to our prior example where you got a company that specializes in eCommerce website design in Singapore to help develop an eCommerce website for your clothing line. We saw that the conversion rate was at 3%. Based on Google Adwords Benchmark, the average CVR for eCommerce is about 2%. That means with a conversion rate of 3%, your business is on the right track.
On the other hand, let’s say you own a real estate business and the conversion rate stays at 3%. The average CVR in the real estate industry is about 4%. At that rate, your campaigns are underperforming.
Intended Actions Required
As an example, as the owner of an auto dealership you carry out two separate campaigns; the first to get people to buy cars and the second to get people to download a free guide on choosing the right car. All other things being equal, which do you think will have a higher conversion rate?
If you chose option B, then you’re correct. Purchasing a car is a huge commitment compared to downloading a free resource and it’s only natural fewer people make the purchase.
Improving Your Conversion Rate
The goal of any digital marketing campaign is to maximize the conversion rate. However, before any business can improve their conversion rate, it is important to note why the current conversion rate is low.
Luckily, it all boils down to two major factors.
Unattractive Offer
Let’s face it, if what you’re offering is truly irresistible, more people will want to purchase it. If not, they’ll turn to your competitor – it’s that simple!
Dealing With Unattractive Offer
If your offer is not attractive, you need to go back to the drawing board. Critically examine your value proposition to see if there are obvious flaws, like the price point for example. Check to see if the message is presented in a way that will connect with the audience.
Moreover, evaluate your digital marketing campaigns to see if they best present the offer to potential customers. If your business is in Singapore, you should get a local digital marketing consultant. Since they strongly understand the market, they’ll be able to help you come up with effective campaigns that will put you in the best positive light.
Bad Website Design
Several factors can harm your conversion rate when it comes to the website design itself. Some of which include:
Difficult to Navigate
If visitors have to spend several minutes and navigate through several pages just to get important information from your website, you can be certain that the majority will close your page within the first few minutes.
Poor Website Performance
Do you know that the average person only waits for about 2 to 3 seconds for a web page to load? If it doesn’t within that period, they will assume that the site is unavailable.
Dealing With Bad Design
As you can now see, how your website is structured and designed can have a tremendous impact on your conversion rate. That’s why it is preferred to hire professionals when designing your website.
For example, if you have an eCommerce business in Singapore, get a company that does eCommerce website design in Singapore to help you develop an eCommerce website. Their expertise will enable them to create designs that work and that will improve your conversion rate.
Other tips to boosting conversion rate
- Create dedicated landing pages for your paid advertising campaigns
- Conduct A/B testing to optimize your website and landing pages
- Use call-to-actions on your website
- If you want visitors to fill a form on your website, keep it short.
- Use video content to engage your audience
In summary
Conversion rate is an important metric in digital marketing that guides you to keep track of how effective your campaigns are. Having a low conversion rate means something is not working right. Working with an expert digital marketing consultant in Singapore can help you pinpoint the problems and make changes that will take your business to the next level.
Therefore, it is recommended to develop an eCommerce website that will enhance your marketing strategies.
As a digital marketing consultant in Singapore, Digital Solutions, can help you to develop an eCommerce website of your dreams and boost your business to the next level.