Conversion rates
<Return to home page Conversion rates are key to any commercial web site project. If you want to get email responses from your company site, then there is a conversion rate for that. If you have an ecommerce web site and send out emails, there is a conversion rate for that as well. It is not enough to get visitors, traffic and visibility ... a site must convert!

 

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  Conversion rates are really the final key to success
  It's not just the number of visitors or page views.
   
 
Once we have completed your website, you may have the inclination to think that all work is done.

Maybe build another one, or add more pages to net more visitors? After all, if you're making 10 sales for every 1000 people to visit, then getting 2000 people to visit will mean 20 sales! Right? Many websites concentrate solely on increasing the number of visitors they have, when often they have fairly simple problems with their site that, if solved, would have a huge effect on their conversion rate and improve their site's bottom line at minimal expense.

How much would it cost you to double your visitor count? For more sites, plenty. What if you, instead of doubling your visitor count, worked to double your sales from your existing customers? How about bumping it to 5%? 10%? Higher?

Think a 5% conversion rate is aiming high? The top online converter in December 2008 was turning 31.1% of visits to sales. Amazon was at 23.7% for the same period. Yes, it was Christmas, but looking at the same report for July 2008 you can see top sellers with conversion rates of 15% to 25%.

The following conversion rates are a compilation of data from a number of independent sources. We've also got some figures for the top online conversion rates taken from April 2005 from Nielsen//Netratings.

It is extremely difficult to predict accurately what changes will have a significant positive effect. So many factors work together, and there are so many differences between users of one site compared to another, that experience can often work against you when you're trying to improve a conversion rate.

Below, the latest conversion rates from the Fireclick Index (made available to its clients). They're aggregated from Fireclick's actual Web analytics retail customers, spanning December 1, 2003, to March 1, 2004:
  Sales conversion rates categorized by type of web retailer.

Vertical Conversion

Rate (%)
Catalog 6.1
Specialty stores 3.9
Fashion/apparel 2.2
Travel 2.1
Home and furnishing 2.0
Sport/outdoors 1.4
Electronics 1.1
All verticals 2.3

Registered users: (Lead Generation)
Companies with an optional and free registration process commonly get 2% - 3% of visitors to register. When added to buyers (who also have to register) companies frequently find they have the personal details of about 5% of visitors.
Free subscribers to paid subscriptions
Typically between 1% and 7% of registered users will convert to a paid service.

Sales/Visit (browse to buy)
A typical range would be 0.5%-8% depending on the sector, target market and quality of the site and proposition.
Within retail financial services online, for example, 1 - 2% would be typical with 2% being very good.

For retailers the high end can go up to 8% but this is exceptional and only the case for the very best pure-play e-tailers.
For a ´clicks to bricks´ e-commerce site targeting consumers you would more usually expect between 1% and 2% of visits to culminate in a sale with 5% representing ´best in class´.

Shop.Org - April 2000
Shop.Org indicates that the average conversion rate of their members' websites (visits resulting in a sale or sales lead) currently stands at about 1.8%. (State Of Online Retailing 3.0 - April 2000)


     

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