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What's a Good Conversion Rate and How to Improve It?

What’s a good conversion rate? At the end of the day, a good conversion rate for you is a higher conversion rate than the one you have now. Knowing where to focus your time and efforts can seem overwhelming but that's where our Gurus can help.

Marketers are all about the conversion rates. But it's tough to know what to shoot for if you don't know what makes a good conversion rate in the first place.

There are real benefits to taking a close look at what makes a good conversion rate. Not obsessively, but at least once per campaign, so that you have a clearer view of your position in the market and what to aim for.

Jump to statistical breakdown for:

Before we jump into the conversion rate statistics, there's one big question you need to answer:

What are you counting as a conversion? 

Conversion may mean different things depending on the campaign. Almost any trackable action that’s important to your business can be counted as a conversion.

That includes conversion from search engine user to site visitor, site visitor to blog subscriber, email recipient to customer, customer to brand promoter, and many other legs of the customer journey.

Examples of conversions include:

  • an ecommerce sale

  • an email subscriber

  • a completed download

  • a lead entry

  • a click to call

If your goal is opt-in forms, you're working with different benchmarks than the numbers you get for your landing pages, which are going to be different than the ones you get in your email marketing campaigns, and so on.

What is a good conversion rate?

The truth about conversion rates? 

They're subjective.

Your product or service, industry and your target audience all weigh in on how you can convert visitors into leads, and leads into customers. The average conversion rate varies by the medium and channel too, so what's "good" for one business might not be for another. 

That said, there are lots of studies and research that reveal what's a good conversion rate.

According to studies, a good conversion rate is somewhere between around 2% to 5%.

But this can vary massively based on the factors we just mentioned.

Take a look at this Episerver research - it shows how conversion rates differ massively based on source. Users who reach your site through a specific channel, such as a Google Ad, might be more interested in what you have to offer than users who land on your site through unqualified channels. They're more likely to be qualified leads, which means sales and conversion rates tend to be higher.

Let's take a look at good conversion rates for different channels:

What is a good conversion rate for a website?

The average rate for a website depends on a whole tonne of factors, including your niche, target device, etc.

That said, the average rate is estimated to be between 1% to 3%. This means a large majority of your visitors will never convert the way you want.

This might sound low, but consider if you have 100,000 visitors a month and your conversion rate is 3 percent. This means about 3,000 of your visitors are converting. Not a bad number!

What is a good conversion rate for Google Ads?

These insights from WordStream show the median conversion rate for a Google Ads is 2.35 percent:

wordsteam median conversion rate

That's the median.

On closer look, you can see that the top 25% are converting at 5.31% and higher.

Ideally, you want to break into the top 10 percent — these are the landing pages with conversion rates of 11.45 percent or higher.

So, if you want to build a good conversion rate for your Google Ads campaigns, aim for a conversion rate higher than 11.45 percent.

conversion-rate-unicorns

This study from Unbounce looked at the performance of 74.5 million visits to more than 64,000 lead generation landing pages spanning ten industries - travel, real estate, business consulting, business services, credit/lending, health, higher education, home improvement, legal, and vocational studies/job training.

What did they find?

unbounce conversion rate by industry

 

The best conversion rate varied across industries, but again, the median conversion rate hit between 3% and 5.5%.

What is a good conversion rate for eCommerce?

Average eCommerce conversion rates are around 1% – 2%, according to Bigcommerce. The platform recommends that at least a 2% conversion rate should be the baseline goal for your online store.

How do you calculate your eCommerce conversion rate?

Easy: If your online store is getting 10,000 visitors and 100 conversions for a set period, your store’s conversion rate is 1%.

Now, let’s delve deeper to see eCommerce conversions by channel.

This research from Episerver retail clients Q1 2020 is based on 1.3 billion unique shopping sessions across 159 unique retail and consumer brand websites. It shows how conversion rates are significantly higher where consumers have higher purchase intent, i.e. they are searching for products on a search engine, compared to social and display ad referred visits where conversion rates are much lower.

conversion rate by traffic source

What is a good conversion rate for Amazon?

The average Amazon conversion rate for organic listings is 10% to 15%, while the average conversion rate for Amazon ads is 9.47 percent.

A good conversion rate for Amazon ads and organic listings is typically above 12 percent.

What is a good conversion rate for Facebook Ads?

Just as with Google Ads, conversion rates for Facebook ads vary across industries.

Another study by Wordstream found that industries with higher conversion rates were fitness (14.29%,) healthcare (11%,) and real estate (10.68%), while technology (2.31%) or industrial services (0.71%.) had lower conversion rates.

The average conversion rate for Facebook Ads is 9.21 percent, which is high compared to other channels. That makes sense given how targeted you can be with Facebook Ads.

What is a good conversion rate for organic search?

How much of your organic traffic should convert? The average conversion rate for organic traffic is 16%.

Studies also show that organic traffic is three times more effective at converting traffic compared to social media traffic.

Why is the conversion rate so high?

Because organic search traffic generally catches people at the end or near to the end of their purchase cycle, when they know what they want and are searching for it.

You’d be forgiven for thinking that this gives organic search the advantage in the battle of SEO vs SEM. But both tactics work at different stages of the funnel, which means they are most powerful when used together. 

What is a good conversion rate for email?

Email is still an incredibly effective channel at driving purchases, especially for ecommerce.

The average conversion rate was sitting at a very respectable 15.11% in 2020, though it's dropped slightly in 2021 to 14.65%.

It's when you dig deeper to look at conversion rates for different types of emails that you can really see  what works:

  • Browse Abandonment Emails: 4.10%

  • Cart Abandonment Emails: 18.54%

  • Email My Cart Emails: 24.58%

What is a good conversion rate for mobile vs desktop?

Just as conversion rates can vary by channel, they also differ based on the device.

Here’s a breakdown:

In the US, mobile has an average conversion rate of 1.68%. Compare that to tablets at 3.20% and desktop at 2.51%.

How can I improve my conversion rate?

Stats mean nothing unless you do something with them. Measuring your conversion rate is the first step. Next, you need to get to the people and journeys behind the numbers to make meaningful improvements.

The question you need to answer is this:

Do you want to be average, or do you want your marketing campaigns to perform better than others in your industry?

Less than  1 in 4 businesses say they are satisfied with their conversion rate. So what can you do about it? How can you craft a strategy to increase online sales?

The businesses that stand out in the above conversion rate studies are the ones that refuse to settle for just "average" conversions.

We've put together some proven conversion rate optimization tips to help marketers rise from average to amazing:

Start planning how you will improve your conversion rate

When it comes to campaigns, too many marketers fly by the seat of their pants, and that's a huge risk. Why?

Because the reality is that marketers who create a clear, documented strategy are 313% more likely to be successful.

Start planning how you will improve your conversion rate.

You know what your page’s current conversion rate is, but where do you want it to be? What does a good conversion rate look like for you?

What would happen if you increased your conversion rate by 1%, 2% or even 5%? How would it impact your business and bottom line?

Don’t just set a conversion rate goal, though.

Break it down just as you would for any other business objective.

  • What is the timeline for your conversion rate goal?

  • Is this goal reasonable and realistic?

  • How can you meet this conversion rate? What steps will you take to get there?

Next, you need to do research.

The key question you need to answer if you're going to improve the conversion rate is simple:

'Why aren’t visitors converting?'

Answering this comes down to two key areas:

  1. Understand different visitor types and intentions. If you want to convert traffic, you first need to understand WHO your customers are, HOW they are getting to your site and WHY they're coming to your site.

    Visitors may have come to your landing page through organic search with no previous experience with your brand or any idea what your products and services are. Or they may have jumped onto your site after a referral from a friend.

    Each of these customer groups has different needs. Only by tailoring the funnel to those needs can you hope to improve your conversion rate.

  2.  Identify issues and barriers with the user experience. Once you understand the drivers bringing people to your website, learn what obstacles they have. In other words, what drives them away?

    Where are people leaving your website? Check Google Analytics to identify your most problematic pages, and their weakest parts.

Now what?

Dive even deeper and gain more quantitative insights using a heatmap tool like HotJar, Smartlook or Crazy Egg.

Heatmaps show the number of clicks, scrolls, and movement on a page. So you can see exactly WHERE people are going on your page, and where they aren’t. Use these insights to isolate which parts of a webpage are driving user behaviour, and pinpoint any sticking points.

Only when you've got a really clear answer to these questions should you start to plan testing and changes to your website to skyrocket your conversion rate.

Change the offer

It doesn’t matter if you have the best Google Ad and landing page in the world. If your offer isn’t what people want, you can't expect a landing page conversion.

Sure, having an understanding of good web design principles is important, but you're ultimately trying to create a website that motivates people to take the desired action.

Your offer plays a mega-huge part of that.

Look at high-performing landing pages and the one thing they have in common is creative and unique offers.

Think beyond what your competitors are doing, and consider how you can stand out with an offer that your audience really wants.

For example, software companies will offer a free trial. Agencies will offer a free e-book.

But how might you think outside the box to come up with something more compelling for your business? This means thinking about what your target audience will value and actually use.

If your conversion rate is stuck at 2 percent or lower, chances are you need to rethink your offer. But you can only know for sure if you ask your customers. Ask people what they want help with, and see what they say. Look for a common theme and craft your offer around this.

The more valuable your offer is, the more likely people are to want to claim it. That's where you will see your conversion rate  soar.

Conduct big tests

Everyone tells you that you should run A/B testing to find out what works and improve your conversion rates. But the reality is, if you want big improvements in your conversion rate, changing button colours and image sizes isn't going to cut it.

You need to go BIG.

PPC expert Larry Kim says it best:

"You can stay really busy doing small things that have little impact. It’s like rearranging deck chairs on the Titanic. We need to move past this mentality to big tactics and optimizations that will dramatically change your performance and fortune."

What kinds of big tests should you try?

A) Flow

One of the main barriers to conversion comes down to it being too difficult for the visitor to complete the sales funnel.

Work out what are the obstacles keeping visitors from converting, and get them out of the way.

This might mean changing the flow of your landing pages to craft a sales funnel that is simplified and friction-free, so more leads can complete their path to conversion.

Start by testing different variations to find out exactly what generates a higher conversion rate.

B) Messaging

The other key barrier to conversion is doubt.

Does your landing page focus on the benefits of your product or service? Does it match with your Google Ad?

If your traffic is landing on your page and quickly clicking away, it’s likely because your landing page and ad don't have a good message match. This puts doubt into the visitor's mind, and they don't convert.

Your goal is to make it instantly obvious that the page is relevant to what the user needs. Don’t leave your visitors guessing when they click through to the landing page. Build trust by making the message match what they expected to see.

The second focus of your messaging is to ensure it matches the user intent.

If your messaging doesn’t resonate with your customers' intent, you’ll have a harder time converting them.

Go back to your buyer personas to find out what your audience really wants. Don’t have buyer personas? Now’s the time to create some - you can use HubSpot’s tools.

Creating a conversion optimized website / e-commerce store  

So, you want your website to be a conversion machine. That means it should be working to transform traffic to leads, leads to customers, and customers to loyal advocates.

Website conversion rate optimization (CRO) is about creating a website that's fine-tuned to encourage online visitors to take that final step to convert and making it as easy as possible.

We know we just told you to focus on the big stuff, but there are some low hanging fruit you can act on first as part of your conversion rate optimization:

Speed up your website

Does a speedier page result in more conversions? Absolutely!

An Aberdeen Group study showed that a one second delay in page load time can have dramatic effects on your conversion rate. It equals 11% fewer page views, a 16% decrease in customer satisfaction, and - get this - a 7% loss in conversions.

So the simple act of speeding up your website can improve your conversion rate (not to mention it will help your SEO performance).

Try these tools to analyze your site speed:

  • Google PageSpeed insights analyzes the content of a web page and generates suggestions to make that page faster.

  • Pingdom tests the load time of that page, analyzes it, and finds bottlenecks for you to address.

  • WebPageTest uses real browsers at consumer connections speeds and also provides optimization recommendations.

Use remarketing

A huge 96% of the people who visit a website will leave without ever converting to a lead or sale. That's where remarketing becomes a powerful tool.

It helps you get in front of a lead with targeted, relevant advertising as they spend time browsing the web, reading emails, scanning an article, watching YouTube videos, using social networks or searching for information.

Cut down your form fields

Too many form fields is one of the fastest ways to kill your conversion rate. You don't need to do much to see that removing all unnecessary form fields will improve your conversions.

Of course, you need to make sure you're getting enough information to follow up leads. So, find the right balance between getting the critical lead information and keeping the form short. 

Let customers know your online store is safe

If you're going to win sales online, you need to build trust with customers before they'll be willing to enter their credit card number and personal details on your website. People want to know you are a credible and trustworthy business.

Time and again, split tests show that trust signals can significantly increase conversion. This includes:

  • Install SSL at checkout and site-wide where possible.

  • Show small images of multiple payment options, such as Apple Pay, PayPal and credit cards.

  • Display McAfee, GeoTrust or other security badges.

These are just a few quick actions you can take today to convert more traffic on your ecommerce store or website.

Over to you

What’s a good conversion rate? At the end of the day, a good conversion rate for you is a higher conversion rate than the one you have now. Knowing where to focus your time and efforts can seem overwhelming but that's where our Gurus can help.

Using our evidence-based methodology and data-driven analysis, our conversion rate optimization Gurus specialize in continually increasing the number of goal completions taken on a website. Their objective is to minimize the friction customers may have during their purchase journey while maximizing the ROI on every conversion.

Get started with your FREE digital audit and 6-month game plan today.

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