We introduced a lovely calculator that allows you to get a rough idea of how AdWords will perform. This is nifty if you plan on using AdWords for paid search.
When meeting with a prospective client, they rarely know the numbers needed for the calculator (average order value, conversion rate, cost per click, etc.). That’s where Sebo’s expertise and experience comes in handy. However, we are about creating freedom. We believe that knowledge is freedom. So, we’d like to teach you how to estimate conversion rates.
Ecommerce vs. Lead Generation
First ask yourself, “Which site is mine? Ecommerce or Lead Generation?”
Is the primary goal of your website to accept online purchases? If the answer is “yes,” then you are most likely an Ecommerce site.
Is the primary goal of your website to grab customer information through a contact form (like ours)? If the answer is “yes,” then you are most likely a lead generation site.
A safe estimation for each would be:
0.5-1.5% for Ecommerce
3-4% for Lead Generation
Conversion Rate Adjusters
Conversion rates can fluctuate for many reasons. These reasons could include:
- Level of commitment required by visitor
- Product’s price
- Buying cycle (Long vs. Short)
- Your website’s trustworthiness
- Level of customer awareness
… Just to name a few. If any of these are a factor for your website, we recommend reducing the conversion rate by 0.5-1.0%.
Level of commitment required by visitor. This refers to how much the visitor is going to have to invest after converting. If they contact you, are they going to have to answer the phone or respond to an email? The difference can mean quite a bit for some people. Are they buying a puppy or a Bobblehead? Is the product extremely personal or relatively public?
Product’s price. Spending $20 is easy. No permission needed from a spouse (usually). But what if you are selling something that costs $5,000? Should that payment be taken online? Are they going to buy on the first visit to your website or wait a while?
Buying cycle. Clothing is surprisingly a long buying cycle. Many visitors aren’t interested in buying any clothes at the moment but would like to receive your newsletters. How much time would you expect someone to take to consider buying your product? This plays more to Ecommerce but is also relevant to lead generation.
Website’s trustworthiness. Are there a lot of broken elements on your site? Does it have an SSL (people are starting to learn they are important!)? How many misspellings are present? Does the site look like it’s been touched in years? Anyone would be hesitant to buy in these scenarios.
Level of customer awareness. This is a tricky one to explain. Let’s say you sell an innovative product or service. Do people know the name of that product? What is it called? What problem does it solve? Will it work? Is this version 1.0? Will it get better like Iron Man’s suits? These could cause hesitation and decrease the conversion rate.