Varos Glossary

Conversion Rate Benchmarks

What are conversion rate benchmarks?

While a respectable conversion rate is often thought to be between 2% and 5%, other experts argue that anything above 10% is more realistic. But that's up for debate. There is no flat charge that applies to everyone. The definition of a conversion, the industry, the product, the traffic source, the landing page text, and many other factors all affect the conversion rate.

Website

The conversion rate of a business's website is dependent on several factors. We point out just a few:

  • Loading speed
  • Optimization for Mobile Devices
  • SEO

Furthermore, there is often a large disparity in conversion rates across sectors. This means that the final exchange rate depends on a wide variety of variables.

Conversion rates on websites vary widely from one sector and business model to another. However, the average conversion rate across sectors is between 2.35-5.31%, whereas the conversion rate for ecommerce is between 1.84-3.71%.

Ecommerce The conversion rate for ecommerce on average falls somewhere in the region of 1-4%, with worldwide data now sitting at 2.58% across all devices. However, conversion rates may vary significantly depending on factors such as industry, country, device, time of year, marketing strategy, and other similar factors.

This necessitates building your KPIs and  considering market-specific subtleties, while conducting an analysis of the median ecommerce conversion rate of your sector's market.

  • Keep in mind that it is impossible for two different firms to have the same conversion rate when you are making comparisons between the conversion rates of your own company and those of your rivals.

There are a number of considerations to take into account, including your intended audience, geographic regions of operation, items or services supplied, and level of market presence.

Email

It is difficult to locate conversion rate standards for emails, especially if you are seeking standards that are relevant to your sector.

In most cases, the email marketing data of typical users are kept secret, despite the fact that we may all stand to profit from exchanging information on the most effective strategies.

  • Open Rates. Open rates are the proportion of email recipients that actually opened the message that was sent to them.
    This is the initial sign of success, and the specifics of this might change depending on the sector. The overall average is 21.33% across all of the different industries.
  • Unsubscribe Rate. ┬áThis is the proportion of clients who, upon receiving your marketing communication, opted out of getting further messages from you. If you start to observe a rise in your rate, it's probably an indication that you're doing something wrong since the average interest rate across all sectors is 0.26%.
  • Click Rate. The term "Click-Through Rate" refers to the percentage of receivers of your email that opened it and then clicked on anything included in it.
    This is the point at which you will see a precipitous drop in the percentages, and you will become acutely aware of how challenging it is to get people to really connect with your campaign by clicking on the offers you provide to them.
  • Hard Bounce Rate. This represents the proportion of emails that were sent but never received by the intended recipient. If you have a high number of hard bounces, it indicates that the spam filters are marking your website as suspicious.
    This almost always indicates that your marketing list is out of the current and that the associated email address has been deleted. Because the vast majority of users use the same email address for long periods of time, the average hard bounce rate is 0.40%.

App

It is generally agreed upon across discussion boards, independent research, and brand-provided analyses that the majority of mobile applications have an average conversion rate of 1-2%; hence, achieving a conversion rate that is more than 2% should be seen as a successful one. Games may have average rates as high as 10%, but SaaS applications, although reasonably well-known, occasionally struggle to meet 1% on in-app objectives. This is because games have a higher time spent in-app due to their addictive quality. The conversion rate for the internet travel sector is between 1-5%, and the conversion rate for mobile devices actually exceeds that of desktop computers.

However, in practice, there is no gold standard, which is OK since there are other, more significant things that can be learned that can help improve app marketing.

The two most important steps in the process of increasing app conversion rates are:

  • Determining the specific conversion targets for your app; and
  • Developing efficient engagement techniques in order to raise those conversion rates.

Checkout

If your checkout completion rate was greater than 61%, you would be ranked in the top 20% of stores, and if it was greater than 69.4%, you would be ranked in the top 10%.

If your store has a checkout completion rate (across all devices) that is lower than 29.5%, you will be in the bottom 20% of all stores, and if it is lower than 21.9%, it will be among the lowest-performing stores.

Conclusion

The goal of comparing your company's conversion rate to industry standards is to identify areas for improvement. To better understand what, if any, adjustments need to be done, it is useful to compare your conversion rate to that of your main rivals.