Good PPC Lead Conversion Rates

Everyone LOVES getting lots of orgasmic traffic, but what is the point of thousands, or even MILLIONS, of window shoppers that just won’t bite? It’s pretty clear that a good lead conversion rate is essential for ANY online business.
What constitutes a good conversion rate (i.e. the ‘visitors who took action’ divided by the total number of your visitors) seems to be in great debate. Every guru from Timbuktu will throw out a number…usually to boast.

2%…4%…7%…etc.

Not very enlightening is it?
Before we get to some helpful numbers, let’s looks at another important percentage:

100%

Yep, 100% is how much of your PPC traffic you can assume are already interested in your product or service…otherwise they wouldn’t have clicked your ad in the first place!
So should you freak out with worry that your conversion rate is too low (like I did before finding YaghiLabs!)? I mean, if 98% of visitors to your site are brushing it aside, should you be worried?

Yes and No

While it’s true that a conversion rate is a gauge of your persuasive sales ability, it also depends a lot on the individual product and the industry you’re in. So set your expectations accordingly and you need not fret!
Here are some more general percentage standards to help you get a good idea of what is expected:

10% for sign-up offers
2-4% for lead generation
1-2% in e-commerce

E-commerce covers a wide area of course. You can expect that the more expensive a product, the lower its conversion rate. Remember though, even being below 1% may give you a good ROI if the individual sales are big enough. Also worthy to note is that the more necessary or urgent services, such as plumbing, can expect higher rates like 15% or more.
As you are beginning to see, the truth behind these variances is that it depends a lot on the nature of the product you are selling, the industry you’re in, and the market you are targeting. Baby boomers buying jetskis are obviously NOT going to have the same conversion rates as grandmas signing up for self defence. Individual levels of interest vary and that’s impossible to control.
So, in the end, how do you know you have a good conversion rate? The answer, which I hope you’ve realised by now, is inescapable…

Accurate Knowledge

You have to know your industry, know your product inside out, and know your customers top to bottom. Only then can you set an accurate yardstick. Then of course, it’s time to work towards that standard and beyond! Why not? Fine tuning your PPC campaigns through trial and error takes time and money but it will ensure the optimum conversion rate possible.
So how many visitors can you turn over to the dark side?
Either read up on our other articles for more of that sweet sweet knowledge, or save yourself the hassle and just leave it to the experts at YaghiLabs.  🙂

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