If you have been running your business for any amount of time, you know how important it is to have a high conversion rate. If your rate is too low, you lose a lot of opportunities to convert your visitors into customers. A high conversion rate is a sign that people trust your brand and want to buy from you. With a low conversion rate, you are missing out on these opportunities.
On the other hand, if a lot of attention is focused on whether your business has a good conversion rate, that’s not the best approach as well. By itself, the conversion rate may not give you a complete picture of how you're doing. What if the project your business is working on can't be compared to others? What if the industry is different?
What is a good conversion rate?
Seeing your conversion rate is low does not necessarily mean that your business is failing. In fact, it is a good thing to know what your conversion rates are, as it will help you to keep track of how your business is performing over a long period of time. A conversion rate is the number of people who take a desired action on your website, divided by the number of times your website is viewed. This means that if you have a conversion rate of 15%, for every 100 people that visit your website, 15 people will take the desired action.
One of the most common questions that we receive in our inbox is: "how do I improve my conversion rate?" The conversion rate depends on the market average. This means that, if you have a lower conversion rate than the market average, you should look into the reasons for that. If you have a higher conversion rate, you are doing a great job. But what is the market average for conversion rate? What is the average conversion rate for Google Ads, Facebook Ads, SEO or other sources? In this blog post, we will answer these questions!
Google Ads vs. Facebook Ads vs. SEO
A better title for this blog post would be: "Is my conversion rate too low? Let's find out what your competitors are making!" There is no such thing as a correct conversion rate. Your conversion rate depends on your product and your market. The average conversion rate varies based on your website and the industry. One industry's average can be higher or lower than another industry's average. By understanding the average conversion rate of your industry, you can figure out how your conversion rate compares. You can then compare your conversion rate to the average and benchmark. The most important thing to do is to know your conversion rate before you do anything else.
As we can see from a blog post published by WordStream, each industry tends to have slightly different conversion rates. It also varies from source to source. Google search ads will have higher CR, because the purchase intent there is higher than for Google display ads, where we just target people who potentially may be interested in what we offer. This is why, it’s always a good idea to analyze sources one by one to take into consideration what’s the purchase intention behind this traffic.
As we can see from the infographic provided by WordStream, the average conversion rate for Google Search is 4.40%, whereas for GDN it’s only 0.57%. But if we dive deeper into specific industries, we can see that the vehicle market has an average of 7.98% conversion rate in search, compared to only 2.77% in clothing.
It would be difficult to provide you here with a list of all niches and average conversion rates for them, but to better understand your current situation, you can always Google it and find out how you’re doing and how your competitors are probably doing.
My stats will not be your stats!
There are more ways to measure your conversion rate than just using Google Analytics. You could be getting more conversions than you are measuring! Don't just go by your analytics. Look at other sources of data too. For example, Facebook Ads gives you a conversion goal for your ad set. It will say if you are getting close to meeting your goal or not. Google Ads also gives you a conversion goal for your ad set. It will say if you are getting close to meeting your goal or not.
Almost every day, I get a message or an email from someone that has a website and a question. Usually, that question is: "How can I get more traffic to my website?" The truth is, that no matter what you read on the internet or in a book or even what I say on this blog, you will never be able to take my traffic stats and compare them with your own and come up with a result that will be the same for both of us. There are so many variables that go into producing traffic that even if you use the same method to get traffic, the results will not be the same.
On the other hand, it doesn’t really make any sense to focus on generating as much traffic as possible. You can get all the traffic in the world, but as long as it’s not coming from your potential customer, as long as you didn’t eliminate your bottlenecks on the website, it won’t convert into sales. Think of each visitor as a potential customer. If this person didn’t buy anything, try to understand what was the reason. At the end, when you better understand your customer, you will be able not only to increase your average conversion rate, but you’ll also realize that you don’t need thousands of extra hits. You’ll only need those that really matter.
How to find out what your stats are?
There are lots of tools to measure your stats. For Facebook or Google Ads, you can measure your own stats, but they will never be 100% correct because you don’t know what ads are shown to the people who don’t click on them. Your Facebook Ad stats are only correct when you know what ads were shown on Facebook to people who didn’t click on your ads (it’s fairly easy when your targeting is precise). Not all people who see your ad will click on it, and not everyone who clicks on your ad will buy your product.
You will be amazed at how many ways there are to evaluate your stats! Google Analytics and similar tools will give you a complete report of your KPIs. It's important to remember that, when comparing your results to others, you should always check the time of year, the time of day and in case of social media activity, the number of posts and the number of followers (for Facebook pages). Always compare apples with oranges!
Conclusion: It’s hard to compare your own business to others and to know if your conversion rate is too low or not. Knowing the conversion rate of your competitors can be useful, but the most important thing is to know your market average. Find out how in this blog!
It's important to know whether you are performing poorly or well. Without this data, you might be overspending on ads that aren't working. Benchmarking is a great way to see how your Facebook ads, Google Ads and SEO are performing. You can then compare your performance to the average of all these marketing channels.
To find out whether your conversion rate is too low or not, you can compare your website to similar businesses in your niche. You can use SEMRush for this. SEMRush provides you with information about your website’s ranking in search engines, its rank in social media, and it's cost per click.