Conversion Rates, SEO, PPC, Search Engine Optimization, Web Design, Charlotte, NCIn web jargon, a conversion rate is the ratio of people of just viewing your site versus the number of people that actually purchase something. Even if they don’t actually purchase ON your site, if they make the phone call and purchased through you personally, that still can be considered a conversion if they came to the buying decision while on your site.


So, a conversion is ‘converting’ a viewer to a buyer on your website. The conversion ‘rate’ is the ratio of buyers to viewers. A typical conversion rate on a new pay-per-click campaign may be 100 viewers to 1 buyer, or a conversion rate of 1%.

High Volume is Good, High Conversion is Better

Many people focus too strongly on spending money to attract more visitors to their site, when it is much easier and cost-effective to increase your Return On Investment is to increase your conversion rate. For example, if 1000 people come to your site and you convert 1% of those into buyers, that means 10 people have purchased something on your site. If the average purchase is $100, and your cost on that $100 was $20, equaling a total production cost of $200 and a gross profit of $800. Let’s say it cost you $.50 per click to get that 1000 people there ($500). You have made a net profit of $300, or at this point, 148% ROI.

Double Your Pleasure

Now let’s change one simple thing, let’s double your conversion rate from 1% to 2%. Taking the same numbers into effect means 1000 people came to your site that you sold to 20 of them (not 10), for a gross sales of $2000, and the production cost of $400, but for the same $.50 per click ($500 in pay-per-click cost). So now your net profit is $1100 or 181% ROI. By simply going from 1% conversion to 2%, you have substantially increased your Return On Investment for no additional advertising cost.

How Can You Increase Your Conversion Rate?

There are a number of ways to increase your conversion rate. One way is to improve your landing page to make it much more purchaser-friendly to induce a purchase from the viewer. If your page is designed to compel them to buy, this will increase the ratio of people from simply looking at the page to someone who buys something. Change the Destination URL to a landing page more relevant to the content of the ad (or keyword). By increasing the relevance of your landing page to the ad that they clicked on, you’ll be taking your viewer directly to what they are interested in, therefore increasing the likelihood that they will buy. Also when choosing keywords for your ads, the more exact or longtailed your keywords are, the more likely they are to buy. Metheney Consulting can help you get the most from your marketing dollars by doing this.



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