Focus on the conversion rate and the impact of AI on its calculation

The conversion rate reflects the traces of visitors on a website. By describing the actions and frequencies of users, they are used to achieve the objectives of marketing sites.

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What is it about?

It is the percentage of visitors who perform specific actions on a website. This visit is recorded regardless of the action, whether it is a purchase, a subscription, a product selection or a download.

Just as there can be a multitude of actions on a page, the conversion rate can momentarily change. Such versatility will vary from one page to another and even from one product to another.

Companies aim to increase this conversion rate significantly. This is indeed logical, as a high conversion rate means more sales and actions on the page.

How to calculate the conversion rate?

The easiest way to calculate the conversion rate is probably the following. It will suffice to divide the number of conversions on the number of interactions on a site. Let’s take the concrete example of a company that launches an advertising campaign on Facebook. The administrator of the page decides to sell Irish sweaters and the publication attracts 1000 visitors. And if about 40 of these visitors buy the sweater, the conversion rate is equal to 4%.

Depending on the specificity of a company’s actions and goals, the conversion rate will mutate. It is therefore necessary to scrupulously follow the movements of users. For those who are tired of doing calculations at every turn, automatic calculators have been developed.

There are also 3 types of conversion: total conversion, subscriber conversion and customer conversion. By taking the advertising campaign for the sale of Irish sweaters on a Facebook page, we can illustrate these 3 conversions.

The total conversion rate will be equal to the number of unique visitors divided by the number of visitors with a conversion.

As for the Subscriber conversion rate, it will be equal to the number of unique visitors divided by the number of new subscribers.

Finally, the customer conversion ratewill be equal to the number of unique visitors divided by the number of new customers.

These indexes are of paramount importance for sites with a commercial focus. Via Google Analytics, the administrators of marketing pages will have access to more details in terms of conversion rate. It is indeed a powerful tool to track visitors on marketing sites or platforms.

Various parameters affecting the conversion rate

A/B tests

A/B tests are usually chosen by companies to compare options. The use ofAdoric allows to determine how the conversion rate reacts to changes in the website.

The type of display

The test gives the possibility to check which kind of advertisement works best, it can be popups or online ads.

The offer

Businesses have no shortage of imagination when it comes to attracting their customers. The best lures are discounts, offers and rebates. But not all discounts are equally attractive. The reality is that 10% discounts attract much more interest from users than other figures. Likewise, free shipping for new customers or subscribers is effective.

Headlines

Making headlines attractive also influences the conversion rate on a given site. Playing with fonts, size, color, effects of fonts gives unsuspected advantages.

The colors of the buttons

As said before, playing on the font has its advantages. Thus, opting for flashy colors or on the CTA buttons would have an impact on the conversion rate.

Triggering moments

Sometimes when a button is clicked, the site will activate a certain countdown before opening another page. The trigger moment allows the site to keep the visitor’s attention for a few seconds. This presence will logically influence the conversion rate. It is highly recommended.

Average conversion rate

The average conversion rate is usually between 1% and 3% and describes the average number of actual “visits” to the site. This number indicates that a certain number of users only visit the site and do not take any specific action.

The main objective of marketing sites will focus on increasing the conversion rate and the number of unique visitors. But realistically, these numbers will not really reach 50% and of course will never approach 100%. However, it is possible to increase them to be significantly closer to 50%.

How to recognize a good conversion rate?

A good conversion rate can be determined if it is between 2% and 5%. Currently, the big brands have the best conversion rates.

Conversion rate trackers

Tracking a conversion rate on different devices will show up in the numbers. The rate will actually vary from device to device. On a desktop computer and on a tablet, the rate will be higher than from a mobile device. The fact is that mobile devices do not convert as well as desktop users. The explanation given is based on the idea that mobile device users are less attentive.

What are some ways to increase conversion rates?

So what can you do to increase this rate? Here are 5 ways to improve it.

Propose a new personalized offer

Work on custom offers. Customers are often quickly titillated by discounts. In addition to discounts, if a site offers free shipping, you can be sure that purchases will increase.

Turn cart abandonment to your advantage

When the customer selects one or more products on a sales site and abandons the filled cart without reaching the payment. The causes can be diverse. However, it is possible to fight it by simplifying some procedures. In other cases, offering several payment options or adding an SSL certificate can dissuade the customer from abandoning his purchase.

Improve marketing techniques

Rarely do users buy on the first visit. That’s why you need to strengthen your marketing techniques. It is necessary to gain the trust of the customers so that they reveal themselves. This means advertising to those who have already visited the site in the past.

Don’t get discouraged by testing several times

Of course, after testing and testing, you may go through a phase of despair, but don’t let it discourage you. The smallest details count and patience often bears underestimated fruits. Run regular A/B tests and watch the changes as time goes on.

Boost customer support

Promoting good customer support greatly increases the conversion rate of a site. The following actions can help considerably: the presence of FAQs, clear pointers and direct chat. The latter can increase revenues by half and the conversion rate by up to 40%.

Artificial Intelligence positively influences the conversion rate

Many companies are now using the advantages that AI offers to increase their conversion rate as well as their sales figures. The automation, data analysis and support that AI offers has already paid off for 14% of companies according to the Boston Consulting Group. Artificial intelligence has indeed been able to offer solutions to sales companies during crises.

Artificial machines at the service of humans

AI can be used to study users’ commercial or non-commercial behavior. The masses of data collected are analyzed to offer personalized and authentic services. On the other hand, the best solution that AI has provided is the ability to solve problems based on the data and situations present. These machines adapt to every moment and help to find answers to frequently asked questions.

In terms of sales, online service offerings have increased tremendously since the crisis. Food delivery services, digital streaming of movies online, fitness services, and anything else that could simplify life during this period have grown.

The benefits of AI

AI helps to optimize the customer experience thanks to the fast and efficient solutions it can offer to companies.

Another benefit is hyper-personalization illustrated by the example of Starbucks. With each purchase, customers earn points by developing personalized offers. This technique has boosted sales figures by 300%, predetermining consecutive purchases in advance, motivating and rewarding buyers.

In addition, the ability to provide quick responses to customer requests and need through AI technologies also influences the conversion rate. More and more companies are taking advantage of automated assistance to reduce their customers’ waiting time. The example of Amtrak, with the automatic customer service called “Julie” managed to satisfy 30 million passengers every day.

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