The Top Reasons Your Conversion Rate Is Low

How confident do you feel about your company’s conversion rate? Do you think you are a high performer and get more conversions than most of your competitors? Are you falling behind? Or are you in the middle?

I must assume that you are an average company, since the average company is … well, average. And if that’s the case, I’m willing to bet that even if your conversion rate is higher than the conversion rate of your peers, it’s still not as high as it could be.

What’s a “good” conversion rate, anyway?

I want to start this discussion with a point about “good” conversion rates. You may have a “low” or “bad” conversion rate, but what does that really mean? At what point does the conversion rate go from “bad” to “good”? Is it 3 percent? At 5 percent?

You can calculate the overall “average” conversion rate somewhere between 2 and 5 percent. But this statistic is not significant, because the average conversion rate changes considerably based on environmental factors.

For instance:

  • Industry. Different industries have different conversion rates. If you are thinking about selling products, higher costs tend to equate to lower conversion rates. This makes intuitive sense; More expensive products require more consideration and are more prone to things like procrastination and cart abandonment. So the outstanding conversion rate in one industry could be the lousy rate in another industry.
  • Channel. You will also need to think about the channel you are using, as conversions come in a variety of different contexts and functions. For example, him conversion rate you get from your PPC ads It won’t equal the conversion rate you get with email marketing, even if you’re running what is essentially the same content.

As you can see, there is a lot of room for subjective analysis when it comes to averages and what is considered “good” or “bad”. Your conversion rate may seem nominally low, but it can be average to high compared to other companies in your industry.

On the contrary, you may feel like you have a high conversion rate, but it can be surprisingly low for your chosen channel.

Also, the average conversion rate for a given set of conditions doesn’t tell you much about what’s possible. For example, the average brand in a given market can see a conversion rate of 3 percent, while the best-performing companies see 12 percent.

In that context, a 5 percent conversion rate would allow you to call yourself “above average,” but you would still see less than half of the conversions from a high-performing brand.

The Top Reasons Your Conversion Rate Is Low

So what factors are responsible for your conversion rate being low or staying low?

Some of the reasons may be out of your control. For example, your potential may have a functional limit if your chosen industry or channel has a naturally low conversion rate. So how are you going to change that?

However, most marketers in most situations can have more control over their conversion rate by addressing the following issues:

  • Dissonance directed at the audience. Whether you’re using content marketing, PPC advertising, email marketing, or some other channel as your primary conversion engine, you’ll need to keep your audience in mind. You’re reaching a specific demographic, with specific perspectives and values; If your content is not relevant to them, or if it is not persuasive to them, it will fail.
  • A weak offer. Most conversions offer some kind of exchange. For example, you are offering a product in exchange for money, or you are offering a PDF in exchange for personal information, or something similar. If the exchange is not considered favorable, people will not proceed. Enhancing the offer with free gifts, extended discounts, or other bonuses can help you capture more people.
  • A time consuming process. Users tend to be impatient, regardless of the demographic. If your conversion process takes too long, or requires too much effort, people will partly abandon it. You can streamline and simplify the process to capture more interest (and lose fewer people along the way).
  • Calls to action (CTA) not obvious. It always amazes me to see landing pages where the call to action (CTA) is not obvious. If you want to get more conversions, you need a shiny, almost nasty button for people to click comfortably. Sometimes something simple, like changing the color or moving it up in the layout, is all it takes to win more conversions.
  • Lack of information. In most situations, people want a lot of information before they volunteer their personal information or hard-earned money. If it’s unclear what the benefits are, or if people are confused about what your offer is, they won’t take action. Including a more robust list of benefits or linking them to other informational resources can help you here.
  • Low confidence. People need to trust you before they are willing to convert. If it is a new brand or if people are not familiar with your products, this will be a big problem. Fortunately, you can compensate for this by including more trust signals, such as offering customer reviews and testimonials or showing the top partnerships you’ve been able to secure.

The importance of testing the conversion rate

If you want to be successful with conversion optimization, testing is crucial. You need a lot of experiments and a lot of data to master this art.

Experiments are a great way to test out new angles, new designs, and new copies. Over time, through AB testing, you will discover which techniques are effective in ensuring new conversions and which ones fail. It is also a way to test your hypotheses and theories; Just because you think something will increase your conversion rate doesn’t mean it will.

Similarly, it’s important to run live user tests and use surveys to collect data on your prospects throughout the process. For example, if you find that most users are not interested in making a purchase, despite fitting the personality of your target customer, try to find out what’s holding them back. Is the price too high? Are they suspicious?

There is almost always room for growth when it comes to increasing conversion rates, so you need to adopt a mindset of continuous and iterative improvement. Keep trying new things and playing with new tools to see if you can progress or get over your last plateau.

Beyond conversions

Optimizing conversions and ensuring a higher conversion rate will be insane for your business.

Yes, optimizing conversions and ensuring that higher conversion rate IS going to be great, but it’s not the only thing to consider if you want to be successful in your marketing and advertising strategies.

For instance:

  • Expense, ROI and profitability. You will need to think about your level of spending, your return on investment (ROI), and your overall profitability. For example, it costs nothing to make an organic post on social media, but it could cost hundreds to thousands of dollars to place a single ad on a channel with enough traffic. Therefore, a high conversion rate on a super expensive channel is not as valuable as a decent conversion rate on a cheap channel.
  • Traffic flow. Your conversion rate will be modified by the flow of traffic on your channel of choice; If your 5 percent conversion rate is constant, it is much better to have 10,000 visitors than 1,000 visitors. Once you have a solid conversion strategy, you can work to increase your traffic.
  • Reputation and user experience. Also, consider the user experience you offer and your reputation as a brand. You may be able to get some extra conversions with spammy and aggressive marketing tactics, but if it’s damaging to your reputation, it won’t be worth it.

Your conversion rate isn’t everything. But it will have a significant impact on your marketing results, for better or for worse. This relatively short article doesn’t have everything you need to master the art of conversion rate optimization. Still, it should help you get started in the right direction and help you understand that, yes, it is possible to increase your conversion rate a lot more.

Image credit: anthony shkraba; pexels; Thank you!

Timothy carter

Revenue Director

Timothy Carter is the chief revenue officer for the Seattle digital marketing agency., Y He has spent more than 20 years in the world of SEO and digital marketing leading, developing and expanding sales operations, helping companies increase revenue efficiency and drive the growth of websites and sales teams. When he’s not working, Tim enjoys playing a few rounds of disc golf, running, and spending time with his wife and family on the beach, preferably in Hawaii with a cup of Kona coffee. Follow him on Twitter @TimothyCarter

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