We get asked this question all the time… “What metrics should I optimize for?” or “What is a good conversion percentage to shoot for?”
The answer is that it depends. It depends on the market, traffic source, offer, and other elements.
Instead of focusing on what percentage to shoot for, turn your attention to a couple different metrics. CPA values and your average customer value.
All you should really care about is how much it costs to acquire a lead or customer and how much that lead or customer is worth, when looking from a numbers perspective.
The difference between those two numbers is your profit. So once you have them you can close the gap on how quickly leads/customers are profitable to you through optimization.
The percentage of people that take the desired action is relative to those other numbers. After you establish your average order value and CPA you can then look at the percentage and make it better.
There are instances where increasing your conversion percentage could make you less money. For example if you were selling a product for $40 and have an upsell for $80. You can reduce the price to $30 and of course you are going to most likely get higher conversions since the product is cheaper. But with that less people may take your $80 upsell which could make you less money. That is why it is vitally important to pay attention to the average customer value and CPA values in your marketing. Then going back and making the conversion % better all while keeping your eye on the true values.
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Thanks for watching and happy converting!