Approximate conversion rates
Posted: Tue Dec 17, 2024 7:02 am
Sales conversion is an indicator that should be sufficient for a particular business. If, according to the business model, a store brings in N revenue, then its conversion should not be lower than a certain value.
Roistat brings average indicators for various niches:
Financial consulting less than 10%.
Advertising and media less than 10%.
Education less than 8%.
IT less than 7%.
Innovation less than 5%.
Production less than 5%.
Tourism less than 4%.
Retail less than 3%.
Many people think that average indicators are just penetration data confusing, and they are right. But at the initial stage of business, it is still necessary to have at least a rough guideline. Such indicators allow you to understand in general terms what you need to strive for, but each organization decides for itself what conversion is optimal for the company. Further assessment is influenced by:
Annual revenue and size of the organization.
Average bill.
Audience specifics.
Length of the transaction cycle.
Product specifics, etc.
Reasons for poor conversion
The conversion rate is affected by literally everything: the characteristics of the product or service, the organization's policies, and even the errors of the Internet resource developers. The indicator may be unsatisfactory, for example, for the following reasons:
Low usability . This happens if there is no mobile version of the site, the interface is complex, clickable buttons do not work, navigation chains are too long, pages are broken, and take too long to load.
Poor product presentation . When a seller presents their product, they should focus on the needs of the target audience. For example, a product card for a screwdriver set does not need to describe the appearance of the product and its convenience. A potential buyer expects technical characteristics of the tool and the most complete description of the components.
High price . If you rarely buy a product, it is possible that the cost of the product is really too high. Analyze your competitors' price tags and work out your pricing policy.
Low price . If you sell premium goods, then the reduced price on them can become a barrier for the consumer. The products lose their status.
Decrease in purchasing power, seasonality of goods . In some cases, business may be adversely affected by external factors that cannot be influenced in any way, such as social or economic factors.
Untargeted traffic . Let's imagine that visitors came to the online store from an advertisement. The advertisement promised a certain product, but it was out of stock. Obviously, they came for this product, so the deal will not take place. By working on content for the audience of your product, you can have good traffic, but a small number of sales. Here it is recommended to return to the traffic attraction hypothesis and study the demographics of users.
Roistat brings average indicators for various niches:
Financial consulting less than 10%.
Advertising and media less than 10%.
Education less than 8%.
IT less than 7%.
Innovation less than 5%.
Production less than 5%.
Tourism less than 4%.
Retail less than 3%.
Many people think that average indicators are just penetration data confusing, and they are right. But at the initial stage of business, it is still necessary to have at least a rough guideline. Such indicators allow you to understand in general terms what you need to strive for, but each organization decides for itself what conversion is optimal for the company. Further assessment is influenced by:
Annual revenue and size of the organization.
Average bill.
Audience specifics.
Length of the transaction cycle.
Product specifics, etc.
Reasons for poor conversion
The conversion rate is affected by literally everything: the characteristics of the product or service, the organization's policies, and even the errors of the Internet resource developers. The indicator may be unsatisfactory, for example, for the following reasons:
Low usability . This happens if there is no mobile version of the site, the interface is complex, clickable buttons do not work, navigation chains are too long, pages are broken, and take too long to load.
Poor product presentation . When a seller presents their product, they should focus on the needs of the target audience. For example, a product card for a screwdriver set does not need to describe the appearance of the product and its convenience. A potential buyer expects technical characteristics of the tool and the most complete description of the components.
High price . If you rarely buy a product, it is possible that the cost of the product is really too high. Analyze your competitors' price tags and work out your pricing policy.
Low price . If you sell premium goods, then the reduced price on them can become a barrier for the consumer. The products lose their status.
Decrease in purchasing power, seasonality of goods . In some cases, business may be adversely affected by external factors that cannot be influenced in any way, such as social or economic factors.
Untargeted traffic . Let's imagine that visitors came to the online store from an advertisement. The advertisement promised a certain product, but it was out of stock. Obviously, they came for this product, so the deal will not take place. By working on content for the audience of your product, you can have good traffic, but a small number of sales. Here it is recommended to return to the traffic attraction hypothesis and study the demographics of users.