Do you know your CVR (conversion rate)? Whether the goal of your website is to generate leads, drive online purchases, or get email subscribers – if you aren’t tracking conversions you have no way of understanding which keywords and ads are converting website visitors into customers. Without this valuable metric, you will not be able to efficiently optimize paid search campaigns to your target ROI (return on investment) or CPL (cost per lead) goals.
Remember: You can’t improve what you don’t measure!
Conversion data allows you to monitor and measure the effectiveness of your online advertising campaigns. And if you don’t track conversions to the most detailed level, you will not know how to effectively measure the success of your pay per click marketing efforts. You know how much was spent on a keyword. However, how much revenue, or how many leads, did that keyword generate? The answers to these questions are key to understanding how to adjust your keyword maximum CPCs (cost per click) going forward.
Most search engines offer basic (and free!) conversion tracking tools to help advertisers answer these important questions. Google AdWords and Bing Ads conversion tracking are quick and easy to implement – just a small snippet of code placed on ALL thank you/confirmation pages (the pages visitors arrive to AFTER completing the desired online action). If you use Google Analytics, you may also track performance by setting up goals and funnels under profile settings. Note: you can also track performance of non PPC campaigns (e.g. banner ads on other networks, website sponsorships, email marketing, monthly newsletters, etc.) by appending Google Analytics UTM tracking parameters to those URLs.
So, what is a good conversion rate? Ah, the age old question that is more difficult to answer when you are first starting your PPC campaign.
You can scour the internet for forums, articles or case studies to find out what others report as “average” conversion rates and come across benchmark studies for CTR and CVR similar to this. However, itʻs important to remember that conversion rates donʻt just vary by industry, they vary by advertiser too. It’s always best practice to establish your OWN baseline and then improve your conversion rate from there.
Understand your conversion rate. Improve your bottom line. So easy to implement- start tracking today!