Conversion rate on different buying stages
Hello,
In some industries, a 2% buying conversion rate is the Standard.
But we know, customers have different buying stages (recognition of a problem; Research; evaluation; purchase decision; post-behavior).
Each stage has a different conversion rate. So my question is:
Is the standard conversion rate of 2% in GENERAL of ALL buying stages? OR only for those people in the evaluation stage?
We all know that 2 visitors out of 100 will NOT buy. That's not true. Not even 1 out of 500 will buy, so I guess the 2% rate is ONLY for those people in the "ready-to-buy" stage,
Am I right? What do you think?
Hi chewie49,
Are you sing the word "standard" in place of "average"?
Of course targeting different stages of the buying cycle will result in a variance on direct response conversion rates. In fact the goals are often different for each of these stages.
Targeting the upper section of the purchase funnel is often considered educational marketing, or brand marketing. While targeting the lower section of the purchase funnel is generally referred to as response marketing. The goals are different for each of these types of campaigns, but they are all share the goal of improving conversions in the long run.
With educational and branding campaigns you are targeting prospect at an earlier stage and therefore the conversions often occur at a later date, so trying to measure them in the same way you measure direct response campaigns is likely to lead to invalid conclusions.
I think another thing that you are not considering in your question is market segmentation. There are many ways to segment your marketing other than just by "buying stages", and each market segment will have it's own unique conversion rate. It really does not serve much purpose to fixate on any "standard", or overall average conversion rate. You need to test and determine conversion rates by the most granular market segmentation as practical.
You may find that some market segments convert at 20% while others convert at 0.5% and both can be equally effective under the right circumstances. Ultimately you need to measure the value per conversion against the cost per conversion and then multiply that by the number of transactions to find the true value of each segment. Stop fixating on "standard" conversion rates and instead focus on profit potential at a granular level.
How does one start learning Conversion Rate Optimization?
As the thread title says, how should one start with an aim to become a CRO consultant?
Are there any skills that you should already be proficient in (Javascript, Web Analytics etc)?
Is it a lucrative career option?
I want to move away from SEO as it has become almost a commodity to offer as a service,
with no guaranteed results for the client.
CRO looks far more promising, with exact numbers and data that can be quantified and
results measured quickly.
Appreciate your advice.
Thanks!
CRO converts the traffic once its there.
BUT... CRO can be used offsite to increase the conversion of say a FB ad or even a search engine description. These practices, obviously assist SEO in bringing in traffic.