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Conversion Rate
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Conversion Rate - Conversion rate is the proportion of visitors to your site
who will buy your product or conclude a transaction. In theory, every Web site
has a goal and therefore there is an expectation that a percentage of visitors
will fulfill that goal. It may be a non-commercial goal such as
joining an organization or changing a political opinion. Conversion can be
viewed as a metric of SEO "efficiency."
Conversion rate is obviously most important and easiest to measure for online
store websites that are running an advertising campaign. An advertising campaign
that is based on a pay per click model must deliver a profitable percentage of
actual customers from among the visitors who actually get to the Web site.
Therefore, it is considered optimal to produce and place ads that get the most
likely prospects, rather than the greatest number of prospects.
The same considerations to a lesser extent apply to other types of
advertising campaigns and to Search Engine Optimization, which generates
visitors by an investment of time and money in improving the Web site. These
considerations often determine how ads may be localized, what content will be
put on the landing page, how the site will be optimized, and what sort of
content will be added. There is no point in putting English language content in
a Web site that is trying to sell shoes in Paraguay for example, nor is there
any point in running advertisements that appear anywhere other than in searches
or Web sites that have a high percentage of Paraguayan visitors.
Using analytics that trace where visitors go in a Web site and knowledge of
what is likely to make visitors conclude a transaction, SEO practitioners claim
to be able to increase conversion rates by altering the Web site itself.
Google has a "Conversion
University" that provides hints on how to improve conversion. Studies reveal
that about half the visitors to online stores abandon their purchases in
checkout and never complete a transaction. A normal conversion rate can be 1%. A
"high" conversion rate might be 2% to 5%. 10% is extraordinary. Supposedly, this rate can be improved
considerably by studying the flow of visitor traffic, optimizing the checkout process
and the
Landing Page. Obviously,
a 100% or 1000% gain in sales is worth the effort if it succeeds.
Improving Conversion Rates
Conversion rate is so intimately linked to the
Landing Page
concept that articles about landing pages usually discuss what are really
factors that boost
conversion. The assumption in each case is that there is a link or links that
the page designer intended for visitors to click. A high click rate is
"success." Not all landing pages have that goal, but some of the factors
important to getting people to click a link are also important for other goals.
Conversion rates depend on off site factors and on-site factors. Off site
factors include the localization and focus of advertisements and link
placements. On site factors include content and page design. Visual layout as
well as wording can make a big difference in click-through rates both for
advertisements and for on page links.
Here are some of the most important factors:
1. Visual "landscape" - Links that are in the top half of the screen and on the left hand side are
more likely to be clicked.
This can be
varied somewhat depending on what is on the page. For example, visitors may be
drawn to unusual graphics, or
Large
Red Text on a Yellow Background
However, in general the map below is valid. Keep important material "above
the fold" - in the top half of the screen, though not necessarily in the banner
area, which may be ignored.
Here is a false color mapping showing where visitor's eyes tended to alight
and spend the most time on a page. The left upper quadrant and the right
are the most prominent. Put the important messages and the links you want
people to click on in the red areas:

The results of such tests will vary, depending on page content, but focus
on the upper left quadrant seems to be a constant.
2- Content - Of course, the content should be about the product. But
sometimes it is better not to have too much content about the product, as
visitors will get distracted reading your interesting page. Language should be
simple and direct. Avoid passive voice. "With Whizzbang, your conversion
rates are improved" is not as good as "Whizzbang improves your conversion
rates." Involve readers by talking directly to them. "Whizzbang solves
your problems" is better than "Whizzbang can solve one's problems." Make
sure the visitor sees "what's in it for them" at a glance: "Whizzbang can Increase your profits 300%" in large type at the top
is better than "Studies tend to show that our Whizzbang system can increase
profitability by as much as 300%" in small print at the bottom.
3- Style - Here the guidelines are less clear. Simple, direct
sentences are good, but "soft sell" ("You probably will want to buy")
may or may not be better than "hard sell" ("Buy Now").
4- Organization - Make sure people know what your page is about.
That's important for search engines too. The heading should tell people what the
page is about and should be easily identifiable.
5 - Use of Colors - Red buttons are supposedly better than other
colors, but not always.
6 - Link Text Content - Writing "Click here" in a link is said to
increase the chances people will click on a link.
Asking a question in a link is supposed to increase click-thru rate.
What is the secret? should attract more
clicks than "Here is the secret!"
7 - Getting the right visitors to your page - Advertise
free laptops or free sex and you probably will get a lot of visitors to your
Web site. Most of them will not be interested in buying your product
however. The page, and the advertisements for the page must be about the
product. The page description and the advertisements have to be directed to
bringing the sort of visitors who will really buy the product or take the
intended action. A page with a kiddy cartoon may draw a lot of children, but
if you intended that they should vote for a political candidate, you
probably won't achieve your goal that way.
Deviant wording in an advertising and spelling errors can actually
increase click-thru: Lady's Shoes is
said to attract significantly more clicks than Ladies' Shoes. Of course, the extra visitors may not be buying
shoes, and are just attracted by the anomaly.
8 - Eliminate Steps - A one page "process" where people click and
buy on the same page is better than a two or 3 page process, because the
likelihood that visitors will click the next page is never more than a few
percent.
9- Clutter - If a page has a lot of messages, images and
choices, there is less change that visitors will choose a particular link,
if that is what you want them to do.
An optimal page from the commercial conversion point of view should have one
goal, and give visitors a single option. Navigation links detract from
message - you want them to click that button.
10 - Payment - If you are selling something, include as many forms
of secure payment as possible, including ACH (Automated Clearing House)
check payments.
In truth however, nobody can guarantee that a particular
wording or visual layout is the most effective. Therefore, experts recommend
doing A/B testing (effectiveness of two alternatives) or multivariate testing
(multiple alternatives tested for multiple factors).
External or extraneous factors - More than one expert
seriously considers product price a conversion factor. Actually, that's not the
business of the SEO consultant, but obviously, if you lower the price of the
product, you are more likely to get more customers. Free is best. With free
giveaways, you can get up to 20% or more "conversion." But of course, the free
giveaways are usually selling something else, and the real conversion rate is
the number of people who ultimately buy the product. Another obvious factor is
quality. If you have built a good reputation, or any reputation, it is going to
be easier to sell your product, or convince them that your idea is worthwhile.
Conversion Rate Optimization Tradeoffs
The factors that make for good Web design for conversion are often opposed to
those that make good Web design for Search Engine Optimization, and these
tradeoffs must be taken into consideration. The idea entry page, landing page or
main page from the standpoint of conversion is a page that has one screen full
of text and a single link or multiple links to the same page, which is the page
where the transaction is concluded. If the visitor clicks on any link, it is
going to be that product page link. The ideal main page from the standpoint of
search engine optimization is a page that is at the hub of the Web site. It is
the focus of all links in the Web site or one of several foci, but it is also the origin of a lot of
links that go to other key pages, each of which may be a landing page for
visitors seeking a term through search engines. Such pages are terrible from the
point of view of conversion.
The likelihood of a visitor
clicking on any one link when there are many links is very low. Therefore, for a
paid advertising campaign, or even in an organic SEO- designed site we may want
to make separate
landing pages that are NOT portals.
These may have one or two links only to the page where we "make the sale."
The optimization tradeoffs are not necessarily straightforward. For example,
Acme Widgets has $10,000 to spend on optimizing its site. At present, 1%
of visitors buy widgets from their online store. Should they spend this money on
simply increasing the number of visitors, or on increasing the conversion rate
or both? The answer is not straightforward. If visitors are abandoning products
in checkout, they may be leaving when they learn the price of the product or the
shipping terms. No amount of optimization will improve the conversion rate, and
therefore the best SEO strategy may be to increase the number of visitors,
provided that Acme is not already reaching most of its prospective customers.
Here is the ultimate example, a real one evidently, that illustrates the
absurdity of over-emphasis on conversion.
| Conversion Rate
Optimization – Test 2 |
| |
Order Path A |
Order Path B |
| Page 1 Unique Visits |
3908 |
2762 |
| Page 2 Unique Visits |
1374 |
1026 |
| Conversion to Page 2 |
35.16% |
37.15% |
| Page 3 Unique Visits |
43 |
42 |
| Conversion - Page 2 to Page 3 |
3.13% |
4.09% |
| Completed |
19 |
19 |
| Overall Conversion Rate |
0.49% |
0.69% |
What
You Need To UNDERSTAND: This micro-test produced a 41.8% increase
in overall conversion rate.
Source: marketingexperiments.com/improving-website-conversion/conversion-rate-optimization.html
Do you understand? Order Path B is the "New improved" version, which got
0.69% conversion as opposed to 0.49% conversion. More is better right? A 41.8%
increase is "what you need to understand" say the experts. But because Order
Path A attracted many more visitors, the "improved" path resulted in precisely
the same number of orders! It seems that what you really need to understand is that you would have
paid money for someone to do this makeover, and you would have had a Return On
Investment of zero. Maybe that's not what they meant, but that is what they
show.
Conversion Rate Assumptions
Conversion issues are less straightforward for sites that do not engage in
online sales and those that aren't selling anything. For example Whizzbang
Systems sells telephone exchanges and voice mail services to large telecom
corporations. They use their Web site to recruit personnel and for general
advertising. It is very difficult to determine what the "conversion rate" is for
such sites. How likely is it that a telecom executive who read a White Paper at
the Whizzbang systems Web site will choose Whizzbang's proposal in the next
Request for Proposals? The numbers of such transactions are too small to
make a serious estimate from survey data. Whizzbang can, for example, increase
the number of visitors they get by investing in a huge online telecom industry
glossary. That glossary may attract telecom industry engineers and executives,
but it also may attract a large number of curious people who just want to know
about Voice over IP standards, the intricacies of broadband transmission or the
SS7 standard, and are never going to order a telephone exchange. On the other
hand, by including such pages and optimizing them, Whizzbang is building its
brand reputation and its credentials and prestige as an industry leader.
Conversion rate models and other metrics often make assumptions that do not
really apply to all websites and businesses and therefore their utility is
limited. For example, it is usually assumed that there is one or
more "Landing Page(s)" - a page
or pages that visitors get to from advertisements or because the site is
optimized that way, and from which they should be
navigating to product purchase pages. In Whizzbang telecom's Web site, there may
be no such page other than the main page or the most popular page.
Conversion Rate vs Bounce Rate
Another metric that is said to be indicative of site efficiency and
conversion is
Bounce Rate, which
is the rate at which people leave a page in less than X seconds, or the rate at
which people leave a page without continuing to other pages on the Web site.
Bounce rate and conversion rate are usually, but not always, inversely related -
that is, a high bounce rate will tend to imply a low conversion rate. That is
not always the case, especially if bounce rate is defined as time spent on a
page. Remember that 2% is considered a high conversion rate if you are asking
people for money. 80% of the visitors
may leave a page quickly, but 10% of the remaining 20% may make a purchase.
Conversely, visitors can spend hours on a landing page because it is
interesting, informative and humorous, and they may also go to other pages on
the site, without every buying anything or doing what the site owner intended
them to do.
Conversion Rate Articles
Here are some articles for further reading about conversion rate improvement:
7 Rules for Landing Page Optimization - There is nothing here about
landing page optimization, but it is a reasonable guide to improving conversion
rates.
Landing Page Confusion
- This one is also about conversion rates, with some interesting case
studies.
10
Factors to Test that Could Increase the Conversion Rate of your Landing Pages
- This is exactly what it says - an excellent article by a real literate expert
(Sumantra Roy), with no hype.
Landing Page Tutorials and
Case Histories- Again, this is about Conversion rates - with a very large number of links to
guides and case studies.
Copywriting
Maven’s Landing Page Makeover Clinic #1: SEOmoz.org -
Another page about conversion. The joke is that SEOmoz is supposedly a
conversion "expert" - but here is an expert's expert who fixed the expert's Web
page.
Ami Isseroff November 28, 2008
Note - Definitions of Search Engine
Optimization terms are based on inferences from common usage and definitions given by other sources. Conclusions about
search engine behavior are based on understanding of the behavior of the most popular search engines. Both are subject
to error or may change. Search engine company management may define or use a term or set or change any policy in any way
they see fit, and may make these definitions and specifications public or not. These decisions and definitions are
beyond our control. Notice: Copyright
SEO Glossary
Note - Definitions of Search Engine
Optimization terms are based on inferences from common usage and definitions given by other sources. Conclusions about
search engine behavior are based on understanding of the behavior of the most popular search engines. Both are subject
to error or may change. Search engine company management may define or use a term or set or change any policy in any way
they see fit, and may make these definitions and specifications public or not. These decisions and definitions are
beyond our control. Notice: Copyright
All materials are copyright 2008, 2009 by Ami Isseroff. All rights reserved. These pages may not be reproduced in any
form in electronic or printed media without express written permission from the author.
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