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What is Website Conversion?
A website conversion is when a visitor completes a desired action on your website, such as making a purchase, filling out a form, or signing up to a mailing list.
We’ll talk about good conversion rate percentages, but before that, you should also know that website conversions divide into two:
Micro Conversions
A micro conversion is a conversion that gets you a step closer to your end goal or, in other terms, macro conversion. They are events that occur before macro conversions. Subscribing to a newsletter and downloading an e-book are some examples of micro-conversion.
Macro Conversions
Macro conversion occurs when an end goal such as a sale or obtaining a new paid subscription is achieved.
What is a Good Website Conversion Rate?
Wondering “what is a good website conversion rate”? Let us tell you.
An average conversion rate for a website is between 2 percent and 5 percent. Website conversion rates higher than 5% are considered to be “good” or above the average. Moreover, top brands in many sectors enjoy much better results than 5 percent.
Note that conversion rates vary depending on;
- Type of industry (technology, information, finance, legal, etc.)
- Conversion goal (email signups, checkouts, ad clicks, etc.)
- Audience demographic (occupation, income, age, etc.)
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Average Website Conversion Rate by Industry
What is an average website conversion rate?
Conversion rate averages for websites highly differ based on the industry. Even though the average website conversion rate is 2%-5%, some industries like finance drive higher results.
As you can see from the table above, e-commerce websites have lower conversion rates, especially when compared to top-tier finance. B2B websites are also on the higher side, particularly when you look at the top tier.
It’s essential to consider your industry when figuring out where your business stands in terms of conversion rates. For example, while achieving a 6.25% conversion rate can place you among the top-tier e-commerce sites, it would be considered a below mediocre percentage for the finance industry.
Average Website Conversion Rates for Ecommerce Sites
The average e-commerce conversion rate is 2 percent to 4 percent. Conversion rates for online retailers can also vary in itself depending on the retail sector, competition, and demand.
Here’s a breakdown of e-commerce website conversion rate by industry:
The table above shows how average e-commerce website conversion rates may differ based on what they are selling. An online store selling pet care products can expect a higher conversion rate than a store that sells sports items.
Looking at the industry average can prove useful, but I’d recommend developing a better and detailed understanding of what’s happening when users interact with your website. This way, you can also get a clear insight into how you can improve the user experience, hence the conversions.
Website Conversion Rates by Device Type
A report on conversion rates based on device by Statista shows that;
The conversion rate of global shoppers is highest on tablets with 3.41%, while smartphones lag with a conversion rate of 1.86%.
How to Calculate Website Conversion Rate
To calculate your website conversion rate, divide the total number of conversions on your website by the total number of visitors, then multiply the result by 100.
Website conversion rate formula:
Number of conversions / Total number of visitors X 100 = Conversion Rate
If you want to identify what might be lowering your conversion rate, we have a free conversion rate optimization checker tool for you. 👇
Why You Need to Measure Your Website Conversions
Your conversion rates go beyond just numbers and percentages. It’s not just about how much revenue you make. In fact, conversion rates can tell you a lot about your website and product.
Here are two reasons why you need to measure your website conversions:
1. Better Understand UX
Understanding how users experience your website, identifying what works and what causes issues or loss of conversions are vital to prioritize the right changes and optimizations.
Your website conversion rate can give you a hint about the user experience.
- A low conversion rate might be an indicator of poor user experience. It’s best to test and identify the blockers and issues users are experiencing, then optimize them. This can give your conversions a boost as well.
- A high conversion rate shows that you are doing something right (🥳). Identify the highest-converting points in your customer journey and apply the same, if applicable, to other parts of your site.
2. Understand Your Customers
Conversion rates can help you figure out what your customers want and don’t want, what they like about your site or site. For example;
- A low conversion rate on a product or pricing page might indicate that you need to clarify the pricing, features or explain the benefits in detail to the users.
- A high conversion rate on your landing page CTA might show that you have done a great job with the copy and design to persuade users to take the desired action.
Wrap-up
There are many ways to optimize your website conversion rates, from a better design to convincing CTA. In fact, we can break the steps of CRO into three:
- Figure out what drives customers to your website
- Identify what might cause potential customers from converting
- Find what convinces them to take the desired action
When you follow these steps, you’ll understand what contributes to your conversions and what undermines them. This way, you can draw an actionable CRO strategy for the future.
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