This is probably the most common question I get as a consultant specializing on Conversion Optimization. What is a good conversion rate? What should my conversion rate be? I currently convert at X%, is that good?
The correct answer is never particularly direct. Conversion rates vary widely based on many different factors such as price points, audience, marketing channels, etc.
With that said, I was reminded today about the Fireclick Index. According to the index (numbers accurate as of this post date), here are the conversion rate benchmarks for different industries:
- Fashion & Apparel: 1.80%
- Electronics: 0.10%
- Catalog: 5.00%
- Specialty: 0.90%
- Outdoor & Sports: 1.30%
- Software: 7.80%
These numbers are “compiled from the live statistics of participating Fireclick customers.” There is so much room for obfuscation here. Why is the electronics category so amazingly low? If a client came to me selling a $30 electronics products and they were converting at .20%, I would certainly not tell them that was good. And yet, that’s twice the industry average according to this index. Also, what is the price point on the majority of the software Fireclick customers are selling? 7.80% on average seems high compared to the others.
If you ignore the electronics and software outliers, conversion rates between 1.5% and 3% are very common, and you’d expect catalog based sales to be slightly higher so their numbers are probably in the ballpark.
To answer the question in the title of this post, “What should my conversion rate be?” – I have to leave you with one thought. On the web, average is BAD. When you have thousands of competitors, being just as good as everyone else basically guarantees that you will not survive for very long.
One of my clients is in the Fashion & Apparel industry and converts at about 6% (and there’s still room for improvement). If their competitor converts at the “industry average” of 1.8%, well, that rivalry probably isnt going to last very long.
The answer is you should always push your conversion rate higher. You should setting your own benchmarks and then breaking them every quarter. What are you doing to make that happen?