Analyzing Your Site's Conversion Rate

Is the C-Rate a good metric?

The percentage of sales to site visits = the conversion rate. The rate is normally in the 1-5% range. If you experience a 5% or above rate you're in 'fat city'.

The rate is determined by several factors:
- The industry sector in which your business operates. For example, the average C-rate within the healthcare industry is 1.8-2.1%, food and beverage .9-1%, transportation 1.4%.
-Your target demographic: age, gender, etc.
-How competitive your product or service is.
-How much money you budget for social marketing.

If your site is getting good traffic but not many conversions (a high bounce rate) you need to change your online marketing strategy. You are not getting enough market coverage, the site is not engaging, you are targeting the wrong demographic, your product is not needed so demand is low.

Make sure you study the site's analytics to determine where your marketing or product is falling short of your sales goals. Perhaps you can try one or more of the following fixes to get your C-rate where you want it.

-Incorporate good infographics and videos in your marketing.
-Redo your narrative. Stick to the benefits of your product to the buyer and explain them in terse, straight-forward wording.
-Use podcasts and, if possible, a webinar or other form of live streaming which
would include a Q&A session.
-Analyze your competition. How are they marketing? Do they have a blog? Where do you rank in a Google search vs. the competition?
-Use and post customer testimonials.
-Ensure that your access, login, and payment processing is easy to use and response is short. Take all credit/payment options and make sure your site is secure.

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The question of whether the C-rate is a good metric remains? I believe it is one determinant but only one and you should not rely on it entirely to rule your marketing plan. Social media marketing is inexpensive as compared to traditional marketing paths but may not be the way your product is "best" marketed. Radio, TV, public relations, charity partnerships, print, public speaking, seminars and workshops are just a few marketing avenues to be used.

Using a mix of social and traditional marketing is best for most products especially if marketing to a local/regional demographic.

Jim Lavorato, Founder
4M Performance