Increasing conversions gives brands more opportunities to gain customers and earn higher profits. It brings a new marketing philosophy to the table, so should organizations spend money on conversion rate or CVR marketing?
For decades, marketing has been focused on campaigns to make people pay money for products and services. The digital movement has disrupted traditional strategies and has opened the door to many more opportunities.
This article discusses CVR marketing, how it benefits brands, and how to calculate conversion rates.
What Is CVR Marketing?
CVR marketing is a marketing method that centers on increasing conversions or encouraging prospective customers to complete a favorable action.
Conversions may refer to any of the following:
- Purchasing a product
- Subscribing to a service
- Signing up for a newsletter
- Calling or emailing the company
- Following the company’s social media accounts and liking their posts
- Downloading a digital product from the website (ebooks, whitepapers, mobile apps)
- Completing a survey form
Why Is CVR Marketing Important?
Subscribing to a brand newsletter does not seem as impactful as purchasing. So, why must marketers waste money on newsletter marketing and other CVR endeavors?
It’s all about the intention. You will not always be able to convince leads immediately to invest in a product or service with just one website visit. However, when you entice a casual website visitor to sign up for a newsletter or follow your social media accounts, you can engage them further.
These prospects will learn more about your brand and your products or services. The more prospective clients know about you, the more likely they may be to spend money down the line.
Developing a CVR marketing campaign is only the first step. You must track its performance and streamline strategies to make the most of your investment. You don’t need to implement many different CVR campaigns to maximize results.
A high CVR indicates that the campaign is working and is an opportunity to gain more customers and generate revenue. Failure to monitor your campaign results may mean you are spending too much money on unnecessary endeavors.
To know your CVR, you must know how to calculate the conversion rate.
What Is the Conversion Rate Formula?
Before going into the conversion rate formula, here are the steps to calculate the conversion rate:
As mentioned earlier, there are different types of conversions. You must focus on a specific metric—such as the purchase of a product or service—and determine the conversion rate.
Most businesses employ various CVR marketing strategies, which means multiple conversion computations.
It isn’t easy to manually monitor your marketing campaign, especially when most are done through digital channels. It would help if you had marketing tools to track performance.
Conversion monitoring or tracking tools are software services that measure user activities and generate reports for businesses to assess their campaigns quickly.
Aside from monitoring conversions, it would help if you looked at impressions. These are the number of times the advertisement appeared on a particular platform. The number of impressions will be used to evaluate conversions and determine success.
3. Calculate CVR
Let’s input some numbers into the formula.
A shoe company, Runner’s Mate, wants people to learn more about the company and its products. However, it’s a relatively new brand, so it’s still difficult to draw audiences to its eCommerce store and social media accounts.
But if more people can be aware that Runner’s Mate uses organic raw materials and that 1% of its profits go to charity, then they might purchase the shoes and even tell their friends to do the same.
So, Runner’s Mate creates an ad and pays for 5000 impressions. The eCommerce mobile app linked in the ad gained 200 installs during the ad campaign. What is the conversion rate for this ad campaign?
Now, the question is: Is 4% a good conversion rate? Was the ad campaign worth the investment, and should the brand continue along these lines to promote its eCommerce store?
What is a good conversion rate?
Generally, 2% to 5% is an excellent conversion rate. This means Runner’s Mate targets the right audiences with their ads and that warm leads complete the intended actions. They can leverage social media, email, and more paid ads to spread the word about their brand and what their products can offer.
Every brand employs various marketing campaigns to generate conversions. For each strategy to be sustainable, it must deliver measurable results that benefit the brand. The conversion rate is one way to measure a campaign’s success.
Successful CVR marketing campaigns must be continued, while ineffective ones should be improved or scrapped altogether. You can’t keep spending money on campaigns without a solid return on investment (ROI).
It’s not just about money, either. Let’s go back to the previous example of Runner Mate’s ad campaign for mobile app downloads. If there are fewer than a handful of app installs after a month, it’s clear that the campaign has failed. But upon assessment, the marketers realized there was an issue with the app’s UX, so people had a difficult time opening the app.
They can get the app developers to fix the issue and restart the ad campaign. Future assessments will reveal other such problems that can be solved.
CVR marketing can also help you with media planning or creating a roadmap to determine the best media or digital channels to reach your audience. You’ll have more success prioritizing platforms your target customers frequent rather than stretching too thin across all media.
The internet has created a more expansive world for marketers. Better yet, it’s more affordable compared to traditional advertising. The advantage of digital media is that its results can be easily measured.
You can immediately adjust your campaigns to improve conversions based on your CVR results.
Here are several strategies to boost results:
A live chat will engage website visitors who are ambivalent about your product or service offerings. Your potential customers may have questions about your brand, and getting answers instantly with a live chat may convince them to convert.
Communicate your call-to-action (CTA) clearly on all your marketing collateral. Some web users may not know what to do next because your ad’s CTA wasn’t strong or prominent enough. For maximum visibility, opt for multiple placements so people won’t miss them.
Clarity also refers to your website. Minimize clutter so visitors can navigate unhindered, and your CVR marketing strategies can bear fruit. Eliminate distractions from your landing pages, or they will take away the web user’s attention.
Test Your Campaigns
Check and test the campaigns multiple times to ensure they generate the intended results. Troubleshoot all campaign elements, such as web copy and images. Your ads must be free of grammatical errors and engaging enough for your target audience to read or skim.
Make sure all links open to the correct and relevant pages. Don’t waste any clicks—ensure leads can immediately perform your intended action.
You should also conduct A/B testing on your CVR marketing campaign. It’s a research methodology where you set output A and output B against each other and determine which works better. Now you have a strong campaign and need to confirm if it also has a strong CVR.
Make it easy for your target audience to convert. Do away with long forms because people will not have the patience to complete them.
According to a study, people usually leave a website after 10 to 20 seconds. That means you have half a minute to impress and attract a web visitor’s attention.
Giving them a long form to fill out to subscribe to a newsletter or sign up for a mailing list will likely drive them away.
Track Visitor Activity On Your Site
Why are people on your website? Are they browsing specific products or services? Are they buying? It’s essential to understand what people are doing on your website. Track their journey from the moment they click on a landing page and the pages they browse.
If a vast majority of web visitors click away from your site without purchasing or converting in any other way, you have work to do.
CVR Marketing Takeaways
CVR is one of the most critical metrics in digital marketing. Every CVR marketing campaign can be measured with this metric, and it helps companies put money into activities that provide ROI and improve those that are not working.
CVR is crucial to develop sustainable marketing strategies, saving money, gaining more customers, and increasing revenue.
You can create successful CVR marketing campaigns and conversion rate optimizations with the right tools. Mediatool helps businesses manage all campaigns with ease and convenience.