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Low conversion rate

[ Edited ]
Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello,

 

I think I have really low conversion rate in Adwords:

30 last days = 0.09% = 1 conversion from Search campaign(CTR 15%), 3 from Shopping campaign(CTR 1.9%), 0 from Remarketing(CTR 0.17%), 0 from Dynamic remarketing(CTR 0.18%)

Cost per conversion = +-$256

Total clicks: 5.45k

Money spent = $1000

 

I'm selling computers.

 

1. Do you think the conversion rate is low, or I'm having high expectations?

2. If it's really low, would you suggest how to increase it?

 

Thanks

1 Expert replyverified_user

Low conversion rate

Rising Star
# 2
Rising Star

Why would someone buy computers from you rather than elsewhere? Are your prices better? Are you selling well-known brands? Offer free shipping?

 

 

Marked as Best Answer.
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Accepted by topic author kironet
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Re: Low conversion rate

Follower ✭ ✭ ☆
# 3
Follower ✭ ✭ ☆

Hi @kironet, 0.09% conversion rate, is indeed very low, there are couple of things to consider:

  • Try to have someone who doesn't frequently visit your website to go through the entire funnel - perhaps there are some changes that could be made to a landing page. Furthemore, perhaps you can test some bigger changes at the ones that get the most traffic using Google Optimize.
  • Check out your search term report and see whether there are keywords that drive clicks, but are actually irrelevant for making a sale i.e have low buying intent.
  • How are your prices compared to competition. If they are quite higher in a price-driven market, you might consider reducing it. Price is only one, but perhaps there could be other factors as well.
  • Are you counting only transactions (a sale) as a conversion in Adwords? If so, there are other things to consider here and one of them is Customer Lifetime Value. So, if you paid $256 to acquire a customer, maybe he is worth much more than just what you earned from selling that one product. Also, perhaps someone signed up for a newsletter, how many of these can you later convert to a customer?
  • And also, it really depends on your product. It's hard to make a sale right on the spot when a user lands on your page if you sell a $3.000 fitness machine, compared to a $10 book. 

Consider your margins and think how much can you spend in order to acquire a customer. This would rather be a top-down approach, but it will help you define all the operational things such as how much can you afford to spend per click.

 

In addition, 1.9% CTR for Shopping campaigns is really great and since you also had the most conversions from these, perhaps you should a allocate more of your budget there and gradually increase it to test other things as well.

Low conversion rate

[ Edited ]
Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

@RobSkelton

Why would someone buy computers from you rather than elsewhere? This is difficult one, we are giving gifts for each purchase. 

Are your prices better? Our prices are the same and slightly lower.

Are you selling well-known brands? Apple one's 

Offer free shipping? Of course(for each purchase)

Note: We are selling refurbished computers

 

@Dino Kukic 

Thanks for the useful information.

Low conversion rate

Follower ✭ ✭ ☆
# 5
Follower ✭ ✭ ☆

@kironet, you're welcome, best of luck with optimizing your campaigns!