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Measuring Conversion Rates

Every site has conversion events, even those that are non-ecommerce. One of the most integral components of website promoting is the conversion rate of a website. Conversion rates measure the results and success of an effective internet marketing campaign. Conversion rates are measured by the number of potential visitors performing a designated action, whether the action is buying something or completing a form. In most cases, the higher the conversion rate, the more successful the site will ultimately be valuable your website becomes.

Conversion Rate % = Outcomes Unique Visitors during a particular time period.

Measuring conversion rates can be very difficult for companies who are using paid inclusion to bring more business to the web page. Usually, web pages use web analytics programs to measure the conversion rates they are getting when they launch a new pay per click campaign. The web analytics software studies the behavior of website visitors, and collects data for use in many different research areas, including learning about current conversion rates. Data used to study conversion rates is compared against key performance indicators to determine if the conversion rate of the particular website is at the peak percentage or if there are changes that need to be made to the campaign to gather the desired results.

Conversion rate measurement heavily relies on using visitor tracking software such as log analyzers or HitLens Traffic Analysis. But effective management of your conversion rates requires more than visitor tracking software. You also need to analyze why things happen in order to improve your conversion rate. Implementing the following may help lower your bounce rate and improve your conversions:

Analyze your bounce rate.

An important thing you should measure is your site's bounce rate (sometimes called "drop-off activity"). Bounce rate is the number of people arriving at a page and then leaving without doing anything. Compare your pages and determine which have the highest bounce rate. Once you determine which pages have high bounce rates, you can unusually tell why and make appropriate adjustments to help keep users on your site and move them towards ordering or otherwise completing the desired action.

Make a website that works for everyone.

Many people overlook and ignore thousands of people who don't use Windows XP or Vista with Internet Explorer at a screen resolution of 1024x768. So the first thing you should do is to make sure that you develop something that works for everyone, so you're not limiting your potential customer base.

Are your micro-conversions increasing your bounce rate?

Most people measure conversion by the complete macro-conversion action they want users to take (e.g., how many people made a purchase, subscribed, registered, etc.). Every end-goal conversion is composed of micro-conversion points, like the click-through path in a shopping cart. You need to define and plan for micro-conversions and macro-conversions rather than only focusing on the macro-conversions.

Every page on your site should focus on getting the visitor to take an action, even it is simply to move on to the next step in the process. Conversion rates suffer when sites fail to drive customer micro-conversion actions and maintain momentum through the sales path. Once the path is defined and each of the micro-conversions actions defined, you can work on optimizing the most effective call to action for each step that leads to your end-goal macro-conversion.

Action to Benefit Interaction

One effective way is through the action to benefit interaction. On Microsoft's home page, there's a link: "Download Internet Explorer 6 now. Experience the latest in private, reliable and flexible Internet browsing." This call to action is done well because the sentence contains an active verb ("download") plus an implied benefit ("private, reliable and flexible Internet browsing"). Action-benefit interactions have been used by marketers for over three decades. For example, the Columbia House Music Club pitch: "Join the Music Club: 12 CDs for Free!" works particularly well with people who scan information, namely, Web users.

 

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