In this article, you’ll see what a good conversion rate is by industry and how you can calculate your conversion rates.
Table of Contents
Every business owner needs to have any idea of what a reasonable conversion rate is, to know what to expect. And, of course, fine-tune their copy to try to maximize their ROI’s and best their competition.
First of all, conversion in digital marketing is getting your customers to take action from your ad or landing page. You either ask them for their emails, phone numbers, or they make an outright purchase.
According to Wordstream, a website’s average landing page is 2.35%, but the top 25 percent convert at 5.31 or higher. The top 10 websites in the 10 percent have an 11.45% conversion rate.
This should give you a more precise context on what to expect regarding your conversion rates. It’s not a one-size-fits-all sort of thing. You have to keep tweaking your page to get better results.
Conversion rates vary by industry and the platforms you advertise with. What works for one sector or platform may not work for another.
Knowing this will save you from those advertisers that promise you the entire world if you can just buy their course. So, here are the variations according to the industry or platform.
Several studies have been carried out to better find and understand the average conversion rates by industry. This is to help you see what a typical conversion rate resembles in your industry.
Among the industries in the digital marketing space, eCommerce has the largest footprints. Because everybody is trying to sell their products online. So, the competition is more stringent but they offer the best results for the top brands. Reports show that the overall conversion rate for eCommerce is 3.5%. It goes up to about 25.8% for brands in the top 25 percentile.
In the business services industry, customers like to do extensive research before taking action on any offer.
The business services industry records a lower average conversion rate than eCommerce and a lower conversion rate among top performers. Their median conversion rate is 2.6%, while the top performers (in the top 25 percentile) are at 21.6%
The Software-as-a-service (SaaS) space has a higher overall and average conversion rate than the business services industry.
Landing pages in the for SaaS companies create stronger relationships with their customers due to the benefits they offer and the lead-magnets used to get them in the first place. SaaS companies’ median conversion rates are 2.9%, while the best performing brands sit at 24.2%.
Everyone needs legal advice at some point. The legal industry has one of the highest median conversion rates out there, with 4.4%. The best landing pages in the legal industries are slightly lower than the eCommerce industry at 25.3%, But it is up there as one of the industries with the highest conversion rates.
The home improvement industry’s median conversion rate is at a tie with the business services industry at 2.6%.
The home improvement industry is one that almost everyone goes online to research, and with a compelling landing page, you can convert people. The brands in the top 25% of the home improvement industry have a 19.5% conversion rate.
The real estate industry relies heavily on leads. The median conversion is at 2.6%, just like the home improvement and business services industries. The top 25 percentile convert at 19.6%, which is just a tiny scratch above the home improvement industry.
Calculating your landing page’s conversion rate is very simple. You don’t need some complicated formula or a degree in mathematics; it’s as basic as finding out the number of people who visited your page, dividing it by the number of people who converted and multiplying it by a hundred.
Let’s assume you had 5000 visitors on your website, and 250 people converted. You can just pick up your calculator and divide it. So, 250/5000 will give you 0.05. Then multiply 0.05 by 100, and you have your conversion rate of 5%.
Try our free A/B test calculator.
If you don’t want to go this route, there’s an easier way–with Google analytics. It shows you your conversion rate from the platform without any need to do any calculations. But you have first to install it on your website.
If you’re looking to improve your landing page conversions, check out the following articles:
Tracking your conversion rate as a business is necessary because it helps you see how well your marketing campaigns are doing. So actually measuring your conversion rates and knowing what to expect in your industry gives you a clear idea of how successful your business is
Sign up to get weekly insights & inspiration in your inbox.