What is a good conversion rate?
Visitors and clicks in all honor but let’s be honest – it’s the real sales that matter. One of the best investments you as a marketer can make is to optimize your website conversion. That is what percentage of your visitors become leads and customers.
We’ve created an infographic and quick guide on how you can work strategically to improve your website’s conversion over time so that it keeps getting better and better at collecting quality leads for your sales team.
Note that this guide is intended for B2b companies that collect leads. The conversion rate for e-commerce, B2C, hotels etc. may have completely different values.
Conversion rate between 0-0.5%
In the beginning, it can be difficult to get leads. Partly because the traffic is often lower, but also because you do not have enough interesting content or do not give visitors sufficient reasons or tools to convert through eg. to fill out a form. This phase represents a pretty poor conversion rate. Therefore, it is important to have patience and focus on optimizing and removing focus from things that take unnecessary time and resources. If you find something that works here, however, it can have enormous positive consequences later on so take the opportunity to understand what is NOT working.
For example, to get started you can First, see what keywords your page is ranking for and think about whether your pages really match what your visitors expect to see. You can see what keywords your website is showing in Google Search Console. Create content that your target audience really wants and that they are prepared to “swap” using their contact information. Also improve features for collecting leads e.g. forms, popups. If you do not have a large budget, you can start with cheap tools.
Conversion line between 0.6% – 0.9%
In this phase, the conversion has evolved somewhat and generates occasional query but still 99% of your visitors leave the page without leaving any form of information about who they are. But of the few people ewho actually leave an impression, it is important to keep track of where visitors come from. Also, keep track of what kind of leads it is. Are they people who are ready to buy or are they just generally interested in the area you work with. It is, for example, a big difference between someone who chooses to subscribe to your newsletter and someone who fills out a form where they want to be contacted.
In most sectors, a conversion rate below 1% is still considered unsatisfactory. The positive is that we see a development potential because visitors actually choose to convert. Here you should look extra carefully at which channels the visitors come from and which ones choose to contact your company. Do they come from organic search (Google, Bing etc.) or perhaps from links from a partner. Or is it a blog article on LinkedIn that has generated the most leads in the last period.
Learn from what’s happening on your website and your customers’ buying journey and use this knowledge to further improve future ventures. It is also good if you already start working here with some kind of CRM such as Pipedrive or Hubspot CRM. This gives you a better understanding of what your leads actually are and you get better opportunities to communicate with them in an organized way.
Conversion rate 1% -3%
If your site has passed the 1% limit, there is real potential in your online presence. The conversion rate is now so high that you can start working on scaling up your bets. This means that you no longer only need to optimize, but can also focus on copying the methods you have used and which prove to work. Now you can also focus on the channels that do not generate enough leads and see if you can improve those flows as well.
For example, if you do not receive any leads through paid search (Adwords), you may have to optimize both ads and landing pages for this purpose. But also remember that it may be that you should instead focus on the channels that actually work for you and your company and reduce resources for those that do not work. That is, do not spend too much time on channels that do not seem to provide anything.
Now is also the time to increase focus on marketing automation and to nurture leads that are not yet mature. Feel free to use a marketing automation that keeps track of your leads and what they do so that your salespeople only work on the leads that are actually hot and interested. Examples of such tools are Hubspot and Drip.
Conversion rate above 3%
A conversion rate of 3% or more is usually very good. This means that 3 or more out of 100 visitors choose to leave their contact information to your company in exchange for eg. content, knowledge or help. Now it’s really time to focus on scaling up your online presence. More campaigns, more landing pages, more keywords and more content. Look at what content and feeds so far have given you the most leads and try to recreate the same concept with different content.
Imagine if you, for example, Today there are 2-3 landing pages that generate leads – what can 10-15 of the same or similar give you? Maybe 10 times as many leads as today – and you have proof that the entire flow actually works. You can’t make smarter investment than that.
In this phase, it is also important to work more closely with the sales team so that the leads they get to work with are as good as possible. Measure e.g. what percentage of the leads becomes customers and don’t forget to keep taking care of the leads if there is no business right now. This is one of the biggest mistakes companies working with Marketing Automation and Inbound Marketing make.
Now you can also measure the value of an average deal and thus get what a lead is worth. This information is extremely valuable for upcoming marketing and sales budgeting and it also proves the value of the marketing department and ROI.
Focus on the right metrics
Don’t forget to take a look at the details from time to time. Measuring the number of visits, how long the visitors stay on the page and the proportion of new visitors is interesting, but the values that really do matter are:
- The conversion rate from visitors to leads
- The conversion rate from leads to customers
- The conversion rate from visitor to customer
- Conversion rate per channel (search engines, social media, direct, links)
- The value of an average deal
- The value of a lead
- The value of 1000 visits
- If you keep track of these values, your web presence will be much more interesting to work with.