Factors affecting the conversion rate
All websites and web shops have different conversion rates based on a variety of factors. These are just a few factors among other things:
- The statistics measured
- Where traffic is coming from
- Offers and promotions
- Page design, usability and authority
It is possible to measure conversion rate on a specific campaign, the entire website or on different traffic sources. For example, a e-commerce site can have an average conversion rate for the entire website on an average of 1%. But at the same time they also can have a campaign directed against a specific brand or product category that has an average conversion rate of 8%.
It is often a extremely big difference depending on where your traffic is coming from. To compare the conversion rate on traffic from Google compared to social media traffic often show huge differences. History shows that search engines usually give a better conversion rate compared to eg. portals, forums and most referral traffic from inbound links. By tracking this in Google Analytics or any other statistics tool, you can improve your ROI on your marketing activities and take better decisions on how to spend your marketing budget.
Other factors are campaigns – a good ad creates traffic that more or less already are convinced to buy a product. Depending on your advantages it should push for how easy it is to shop, or how quick you can deliver. User-experience is the key. Industry also plays a major role. For example, the electronics industry have a lower conversion rate than any other industry because customers often know what they look for and only look for the lowest prices. The competition is incredibly high and margins are low.
Conversion rate statistics
There have been studies on what general conversion rate online retailers usually have and how much it differentiates for industries. Unfortunately, it is impossible to say how much store X or Y sells if you do not have access to their visitor statistics and the number of orders. However, there is a general percentage shown by studies on various online retailers that can help to get an idea of what is normal.
A very useful site with sales statistics are FireClick Index. That follows conversion rates and trends periodically in various industries and for different traffic sources.
To sum it all up: Only compare conversion rate with your own industry, the type of traffic and the type of marketing. Sponsored links, email marketing or search engine optimization, etc.. A normal average rate to aim for is 2-3%, in contrast to the electronics industry where it can be as low as 0,4%.