The unique circumstances of the year 2020 have forced businesses to shift their focus to other business goals and concentrate on online sales and transactions. However, this is a feat that is much easier said than done sometimes. It may be very easy for business owners (especially ones who have never tried online sales before) to get lost in translation. What aspects of online sales should be tracked to improve overall performance?
Conversion rates refer to the number of sales you generate because of the website traffic you receive. For example, you get 100 visitors to your website, and, at the same time, you are able to generate ten sales. Your conversion rate, in that case, is ten percent. Why is it so important to keep track of your conversion rate? Here is what you need to know.
What does your conversion rate tell you about your business?
Any business will need to measure their success using certain metrics that will indicate if they are doing well or not. If you run a business that primarily operates from an online setting, measuring your conversion rate is an important metric to help you determine whether you have the right strategies in place or if you need to improve on them.
Why track conversion rates?
The online world is very diverse. There are many different factors that can affect the decision of your target audience to buy from you or not. Tracking your conversion rate is a practical and effective way to monitor if you are getting enough conversions out of the clicks you get on your website.
1 – To Improve Inadequate ROI
Keep in mind that you are doing business to make money. Tracking conversions rates will help you gauge if you are making enough revenue from your website or not. If your website is coming up short when it comes to ROI figures, it may be time to improve your marketing strategies to get better results.
2 – To Properly Allocate Budgets
To improve your existing marketing strategies, or to create new ones, you need to have a budget for planning and execution. Tracking your conversion rate will help you allocate a budget for your conversion strategy and the development of new online marketing tactics to improve your conversion rate.
3 – To Identify Clicks from Conversions
It is crucial to identify the distinction between clicks and conversions. You may have a high click rate but a low conversion rate, which is ineffective to earn revenue in the long run. What good will a high click rate do if it does not make a difference in your profits at the end of the day?
Being able to identify the distinction between clicks and conversions will help you zero in on specific points in your online click strategy that you can improve. Once you are able to improve these aspects of your website experience, you will see a difference in your conversion rate as well as in your revenue in the long run.
Your online business is sure to benefit from you concentrating on improving your conversion rate. Keeping an eye on this crucial metric will help you gain more customers who are loyal to your brand. If you do not know where to start, you can always hire a digital marketing firm to help you convert your clicks into loyal customers.
Analytics Beyond is a digital marketing company offering website development, SEO, and PPC services. If you are looking for a premier SEO company in Toronto, give us a call!