THE DEFINITIVE
Chapter 3
What’s a Good Conversion Rate?
How do you know if your conversion rate is working for you? Does your conversion rate demonstrate that you’re connecting with visitors successfully... or does it mean you’re losing traffic and missing out on potential revenue?
We know you’re results-oriented, so you love metrics and numbers. You want a specific goal to hit and to see which conversion rates are good, which are great, and which need improvement.
We can give you some numbers, but keep in mind that everyone’s situation is different. So, take everything here with a grain of salt.
What is a “good” conversion rate?
Based on Leadpages customer data, the average conversion rate for landing pages is 11.7%. However, that doesn’t tell you much as different offers will generate different conversion rates. So, let’s get a little more specific.
The average conversion rate for lead generation landing pages (where the goal is to collect leads, not sales) is 18%. However, that falls to 8.6% for sales pages.
Basically, if you’re giving something away for free you can expect a higher conversion rate, and if you’re asking people to buy something you can expect a lower conversion rate.
You could say that anything above these numbers is a good conversion rate. But really, any conversion rate that generates enough leads and sales for you to reach your business goals is a good conversion rate. All in all, it’s up to you to decide the right conversion rate for your landing page or website.
Make your own “good” conversion rate
We think that the “best conversion rate” is any number higher than what you’re currently doing. Even a one percent bump in conversion will take your business to the next level.
Start with a baseline number. What is your current conversion rate for a specific page or action? What does this conversion rate mean for your business right now?
Then, consider what your ideal conversion rate would be for that action. 100% is everyone’s ideal, but keep it reasonable. What conversion rate percentage would completely change the way your business is currently run? How would your sales journey change if your conversion rate was bumped up?
For example, let’s say you currently have a 1% conversion rate of site visitors to leads. Of 100,000 viewers, you get 1,000 leads. Of those leads, 2% convert to sales later in the sales process. That’s 20 sales.
But what if you brought your traffic-to-lead conversion rate up to even 4%? Now, of 100,000 viewers, you have 4,000 leads. With a 2% sales conversion, you get 80 sales. That’s 60 more sales than you otherwise would’ve gotten.
Then if you also boost your sales conversion to 4%, you’d have 160 total sales.
Small adjustments in your conversion rate optimization can start to show exponential growth.
You don’t need to overwhelm yourself. If your current conversion rate is 2%, you likely can’t get to 15% overnight. But with a few changes and an emphasis on optimization, you can improve your conversion rate and get more people to take the desired action.
Don’t forget the traffic
Let’s also take one more thing into account. You can't look at conversion rate on its own. It has a direct connection to the quality and quantity of your web traffic as well.
For example, let’s say you had a conversion rate of 100%. That may sound fantastic, but it may also signal very few website visitors. Two conversions from two visitors won’t take you very far. But a conversion rate of 5% with 10,000 viewers will give you 500 conversions.
Never look at the conversion rate in isolation. You want to evaluate your rate alongside traffic and total conversions.
Why conversion rate optimization is important
The higher the conversion rate, the more people are interacting with your business and taking those actions that bring your business to the next level. Plus, you’re getting a higher return on investment by converting more of the traffic that you’ve already attracted.
So it never hurts to work on boosting your conversion rate. Whether you’re at 1% or 10%, conversion optimization is about encouraging even more conversions, even more leads, and even more sales.
Frequently asked questions about conversion rates
What types of landing pages convert the highest?
As we discussed, lead generation landing pages convert the best. However, we can get more specific than that. Of those landing pages, cheat sheet landing pages convert the highest with an average conversion rate of 34%. This is followed by checklist landing pages at 27%, ebook landing pages at 24%, and mini-course landing pages at 22%.
How do different traffic sources impact conversion rates?
Different traffic sources can yield varying conversion rates. For instance:
- Organic Search: Typically has high conversion rates due to users actively seeking specific information or solutions.
- Paid Search: Can have high conversion rates if targeting is precise and ads are relevant.
- Social Media: Conversion rates can vary; engagement is high, but intent to convert might be lower compared to search traffic.
- Email Marketing: Often has high conversion rates due to targeting subscribers who have already expressed interest in your brand.
How can I set realistic conversion rate goals for my business?
To set realistic conversion rate goals, consider the following steps:
- Analyze Historical Data: Review your past conversion rates to establish a baseline.
- Research Industry Averages: Compare your performance with industry benchmarks.
- Identify Areas for Improvement: Look for specific elements on your site that could be optimized.
- Set Incremental Goals: Aim for gradual improvements rather than dramatic changes. For example, if your current conversion rate is 8%, a goal of 9-10% might be realistic initially.
- Monitor and Adjust: Regularly track your progress and adjust your strategies based on performance data.
What’s next?
So, what do you do if you discover your conversion rate isn’t meeting your expectations? In Chapter 4 we’ll review a number of strategies that will help you boost your conversion rate and get more out of your marketing campaigns.
