What is conversion rate?
The term conversion rate refers to the percentage of people who see an ad or an offer and actually take the desired action. The “desired action” could be anything from installing an app, making a purchase, or signing up for a newsletter. For example, if you send 1,000 users to an app landing page and 20 people install the app, this means your conversion rate is 2%.
Conversion rates are important because they help you measure how well your website, app, or campaign is performing. If you have a low conversion rate, this could indicate user experience issues such as slow page loading times, your offer is not appealing, or your call-to-action is not clear.
Regardless of the cause of your low conversion rate, improving this metric by just 1-2% can often have a meaningful impact on the ROI of your campaign and overall business.
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How to improve your conversion rate as a marketer
The process of improving your conversion rate is referred to as conversion rate optimization (CRO). CRO is important because it helps you maximize the return on investment (ROI) for your website or campaign. By increasing your conversion rate on paid ad spend, this means you’re increasing the ROI of your existing traffic.
There are a number of ways to improve your conversion rate, and as HubSpot highlights, a few of the most effective CRO techniques include:
- Add social proof to your landing page
- Write strong CTAs and conduct A/B testing with them
- Add live chat to answer any support questions at the time of purchase or download
- Improve your page speed and optimize for mobile
These are just a few ways that marketers can improve their conversion rate, although regardless of which technique is used it’s essential to track all your marketing metrics (not just conversion rate) in order to optimize them over time.
How does Singular track conversion rates?
By taking a scientific approach to marketing analytics and growth, this enables marketers to discover new conversion rate optimization opportunities that can increase ROI. In particular, Singular provides several layers of granularity when it comes to ROI-based insights to improve conversions. On top of ROI-focused insights, SIngular allows marketers to visualize creative assets side-by-side so you can easily see which ad creatives are driving the highest conversion rate. As highlighted in our article on conversion tracking:
The goal, always, is improving future performance by learning from existing and past campaigns. Steady optimization on targeting, conversion tracking, and ROI is critical to maximizing performance.
In summary, tracking and optimizing for conversion rates is one of the most effective ways for marketers to increase the ROI of their marketing efforts and make more money from their existing traffic.