What is a conversion rate? 5 effective ways to increase conversion rates

Reading time: 6 minutes

Conversion rate is a very familiar term for marketing professionals. This phrase appears in almost every discussion about business performance, especially in the evaluation of marketing activities. Therefore, this article will provide readers with more detailed knowledge about what conversion rate is and 5 of the easiest ways to increase conversion rates.

Vietnam’s leading AI-powered multi-channel virtual call center.

What is the conversion rate?

What is conversion rate? – This is a metric often referred to in Vietnamese as conversion rate. The conversion rate indicates the percentage of people who perform any desired action out of the total number of people. Typically, the conversion rate is calculated based on specific customer actions: filling out information forms; receiving ebooks; making purchases; signing up for offers, etc.

What is the conversion rate?

Conversion rate is typically calculated based on specific business objectives. For example:

• [1000] people visit the website, [100] of them leave their contact information to request service consultation. The conversion rate in this case is 10%.
• [50] Of the 50 customers who visited the store, 20 customers made a transaction.
• [2000] customers accessed the website omicall.com, and 100 customers registered to try the multi-channel call center.

The conversion rate is calculated using the formula: number after / number before (the number in square brackets).

Why is it important to optimize conversion rates?

There are many assertions about the importance of the conversion rate (CR) in business and marketing activities. This is because it is one of the key metrics that helps managers and staff easily assess effectiveness. During implementation, the conversion rate can be seen as your “exam score.” Therefore, no one wants to get a low score, right?

Optimizing and improving conversion rates in marketing offers many benefits to businesses. First and foremost is the cost-effectiveness. For example, if you spend 1 million VND to reach 1000 people and receive only a 10% conversion rate, then an increased conversion rate means your 1 million VND is generating more value for your business.

The Importance of Conversion Rate in Marketing

Furthermore, the conversion rate is one of the key indicators of the success or failure of any objective. This allows businesses to make timely adjustments to better monitor whether their projects are on track, thereby minimizing unnecessary risks and losses.

Revealing 5 ways to increase conversion rates in marketing.

After understanding the concept of conversion rate and its importance, let’s explore 5 ways to increase conversion rates effectively in marketing. Specifically, here they are:

Set clear goals.

Typically, conversion rates rarely reach 100%. Therefore, before starting any campaign, you need to research the ideal conversion rate for your industry, budget, and distribution channels to set goals that are appropriate and challenging enough for your team. This will allow you to create achievable action plans that are easy to track and optimize your conversion rate.

Create a clear value proposition for customers.

Creating a clear value proposition will make your product or service more easily accepted by potential customers. A specific value proposition makes it easier for businesses to choose a logical approach and call to action. This helps customers easily understand the value they receive and encourages them to take action, ultimately increasing the conversion rate of the campaign.

Use the A/B testing method.

A/B testing is undoubtedly a very familiar method for marketers. It’s also one of the effective ways to easily test and measure the effectiveness of your campaigns. The more thorough you are in preparing samples for A/B testing, the more successful you will be in finding the optimal formula for achieving a high conversion rate (CR).

Build a suitable sales/marketing funnel.

Build a suitable sales/marketing funnel.

Analyzing and understanding the customer’s buying journey is one of the core elements in increasing conversion rates. This greatly supports the process of building a sales/marketing funnel that accurately meets customer needs and psychology. As a result, the conversion rate will improve significantly.

Identify the reasons why customers haven’t taken action.

This might be one of the factors businesses often overlook when evaluating campaigns. However, it’s one of the ways to understand the barriers preventing customers from converting as desired. From there, you can make suggestions for changes to optimize any campaign.

Subjective self-assessment and habitual adjustments to increase CR (Continuity Rating) are common, but this approach is not highly effective. Due to resource constraints, many organizations have abandoned this method to bring about positive changes to these important metrics.

Conclude

Above are some basic concepts about what conversion rate is. In addition, we’ve covered methods to optimize your conversion rate (“CR”) for each specific campaign. Hopefully, this article from OMICall has provided you with many interesting insights into one of the most important marketing metrics.

VIHAT TECHNOLOGY Co., Ltd

Headquarters: ViHAT Building – 06 Street No. 16 (Him Lam Residential Area) – Hiep Binh Chanh Ward – Thu Duc District – Ho Chi Minh City

Hanoi Branch: Floor 15, LADECO Building, 266 Doi Can, Ba Dinh, Hanoi

Cambodia Branch: Thida Rath #154 St. 33MC, Sangkat Steung Meanchey, Khan Mean Chey, Phnom Penh