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Why my Conversion Rate is Very Low?

Follower ✭ ☆ ☆
# 1
Follower ✭ ☆ ☆

Hi Friends,

Compare to last month, my conversions has got increased and conversion rate has reduced. I would like to how my conversion rate has got reduced? 

Last month Stats:

Budget: $23,649.51 Clicks: 2,450 Conversions:71 Conv.rate: 2.90%

This Month Stats: Budget:$27,080.02 Clicks:4707 Converisons:77 Conv.rate: 1.59%

 

Please help me in this regard.

 --

Thanks,

S.Rajesh

1 Expert replyverified_user
Marked as Best Answer.
Solution
Accepted by topic author Joomla J
September 2015

Re: Why my Conversion Rate is Very Low?

Rising Star
# 2
Rising Star

Hi Rajesh,

 

Conv. Rate is the ratio of conversions to clicks which is (conversions/clicks) *100. In the previous month you've got 71 conversions from 2450 clicks which gives a conv. rate of 2.89%. Though your conversions have increased from 71 to 77 this month, the number of clicks have almost doubled (from 2450 to 4707) which slashes the conversion rate to 1.63%. In other words, your conversions changed much but conv rate has reduced due to increase in clicks.

 

This also means there's a difference in the traffic you're getting. Have you made any changes (like adding keywords or changing match types) apart from increasing the budget? I'd recommend looking at the search terms to identify irrelevant clicks and negating them using negative keywords.

 

Feel free to write back!

Sumanth Sridhar
Marked as Best Answer.
Solution
Accepted by topic author Joomla J
September 2015

Re: Why my Conversion Rate is Very Low?

Badged Google Partner
# 3
Badged Google Partner

Hello Joomla,

Conversion rate is an equation with two parts: conversions over clicks. You clicks have increased but the conversions have not increased with the same proportion, hence causing your conversion rate to drop. 

Firstly, make sure there is no tracking issue. Once that is done, you can take other measures to improve your conversion rate.

  1. Identify the keywords, that are generating high traffic but low conversions. Either lower down the bids of such keywords or pause them
  2. Review your search terms and mark all irrelevant keywords as negative
  3. Try testing different landing pages to see which performs better in terms of conversion rate. 
  4. Try testing different match phrase to see which performs better in terms of conversion rate. 


Regards,

Syed Sayem Mustafa




Marked as Best Answer.
Solution
Accepted by topic author Joomla J
September 2015

Re: Why my Conversion Rate is Very Low?

Explorer ✭ ✭ ☆
# 4
Explorer ✭ ✭ ☆
Simply, Conversion rate is calculated by taking the number of conversions and dividing that by the number of total ad clicks.

According to your Stats of last month -
Conv.rate = Conversions/Clicks = 71/2450 = 2.90%

Stats of this month - Conv.rate = Conversions/Clicks = 77/4707 = 1.59%

Your Ads has earns good clicks but conversion rate is poor. you can take several steps to improve your conversions.

There are a number of things you can do to improve your conversion rate, like adding more specific keywords and negative keywords. Refine your traffic by adding negative keywords which are non - relevant to your ads. Pause or remove more general Keywords which more likely increase clicks that are not potential Value . Use the search terms report to reach the right customers - increase bid of the more converted search term( Keywords ). Improve your landing page experience like highlight offers and price. For more info https://support.google.com/adwords/answer/2404198?hl=en
Marked as Best Answer.
Solution
Accepted by topic author Joomla J
September 2015

Re: Why my Conversion Rate is Very Low?

Follower ✭ ☆ ☆
# 5
Follower ✭ ☆ ☆
Thanks Sumanth. How do i reduce my budget in adwords? Give me some tips. But also increased huge in this month. What would be the reason for this?

Thanks Again,
S.Rajesh
Marked as Best Answer.
Solution
Accepted by topic author Joomla J
September 2015

Re: Why my Conversion Rate is Very Low?

Badged Google Partner
# 6
Badged Google Partner
Hi Rajesh,

You might have added new keywords in the account which may have resulted in increase in budget.
In order to optimize your budget, identify negative keywords from your search term and add them to your campaigns and ad groups. This will help you save a lot of budget and and irrelevant clicks.
Secondly, do an analysis on the average position of your keywords and see which position is most converting, rather than going for the top positions. Top positions tends to get most click which result in high spending, but if you focus or keeping your avg positions at 3-4 slot, this will help you get good conversions at a lower cost.

I hope this will help you in optimizing your spending.

Regards,
Sayem
Marked as Best Answer.
Solution
Accepted by topic author Joomla J
September 2015

Re: Why my Conversion Rate is Very Low?

Follower ✭ ☆ ☆
# 7
Follower ✭ ☆ ☆
Thanks Sayam.