Grokking your conversion metrics
Key takeaway:
A conversion rate is a percentage of people that went from X to Y.
For example, when a website visitor completes something, such as filling out a form, subscribing to your list, or making a purchase – that’s a conversion.
If 100 people hit your website, and 5 sign up for your email list, your (opt-in) conversion rate is 5%. If 10 people click to buy, and 1 actually buys, your (sales) conversion rate is 1%.
So use your actual data, or estimates using industry norms if you don’t have any yet, to determine if something is worth the effort versus winging it.
Want some very broad stroke industry norms?
- From viewing an ad to website visitor = .05 – 4.5%
Note: this is referred to as “Click Through Rate” and they can very low if your ad stinks or it gets lost on a page of tons of other ads, or it can be very high if say you’re doing a non-skippable video ad on YouTube, which is of course much more expensive.
- From visitors to a landing page with a “lead magnet” to signing up to get the free digital gift = 1% – 5%.
Note: we’ve seen these conversion rates as high as 65% on our own landing pages and on those of students because there are lots of ways to optimize the design of the page and creating a really attractive offer.
- From website visitor to a sale = 1% (if lucky).
VS
From email openers to a sale = 5% – 20%.
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