Conversion rate is a metric used in digital marketing to quantify the effectiveness of marketing activities. It measures the percentage of users who “convert”, or take a desired action, out of a larger group.
In the context of boutique professional services firms, a conversion could be a potential client booking a consultation call, signing up for your newsletter, or downloading a case study from your website.
How to Calculate Conversion Rate
The conversion rate is calculated by dividing the number of conversions by the total number of actions, and then multiplying the result by 100 to get a percentage. For example, if your website had 1,000 visitors in a month and 100 of those visitors booked a consultation call, your visit-to-booked-call conversion rate would be 10%.
Conversion rates are not static numbers – they fluctuate based on a range of factors, such as changes to your marketing strategy or modifications to your website. It's important to monitor your conversion rates so you can keep track of any changes and make necessary adjustments.
Why Conversion Rates are important
The conversion rate is a vital metric in growth marketing because it directly impacts your firm's bottom line. For boutique professional services firms, a high conversion rate could mean that your website is effectively communicating your expertise, your content is resonating with your target audience, or your services are appealing to potential clients. On the other hand, low conversion rates would indicate issues with your website, marketing strategy, or offerings that you’d need to address.
Improving your conversion rates should be an ongoing focus in your marketing strategy. Even small increases can lead to significant impacts – for example, increasing your website visit to booked meeting conversion rate from 5% to 7.5% would result in a 50% increase in booked calls.
