With the number of marketing platforms increasing each year, many startups face difficulties when allocating the right share of the marketing budget to each different strategy and assessing conversion rates.
A lot of effort is then needed to customise these channels to suit the individual business needs.
Knowing the marketing channels that give other businesses their highest conversion rate is a good starting point to benchmark your own results and thus identify areas for improvement.
Only about 22 per cent of businesses are satisfied with their conversion rates, according to Econsultancy, 2016. So this metric is obviously high on most business’ lists to determine what theirs is and then finding a way to boost it.
Measuring the success of your own business against others can be tricky territory as there are so many factors going into the metric. But it can give you a bigger picture of whether your marketing strategy is successful, or at least be heading in the right direction.
However, these comparisons should only ever be benchmarks. Aim higher and look to surpass those average numbers.
Only about 22 per cent of businesses are satisfied with their conversion rates. Click To Tweet
Below we look at the most popular digital marketing platforms and then at key metrics and how to make sure you score highly…
Email is one of highest converting channels, which is unsurprising as subscriber lists already contain customers that have opted into receiving marketing from the business.
The conversion rate benchmark for email is 4.29 per cent.
However, you’ll only reach these returns if you can convert your email audience into consumers. Something as simple as tweaking a subject line could make all the difference in conversion rates.
TOP TIP: Make sure you create mobile-optimised campaigns as 49.53 per cent of emails are opened on a smartphone according to MarketingLand.
The number of advertisers using Facebook has more than doubled in the last 18 months, with the average conversion rate for Facebook across all industries at 4.7 per cent.
While gaining traffic through Facebook is easy enough with ad copy, boosting conversion rates is not as simple.
TOP TIP: Use interest-based targeting and make sure that you build high-converting landing pages for those that click on your ads. This is where conversion will succeed or fail.
An average conversion rate benchmark for websites is approximately 7 per cent, though anything between 5 and 10 per cent should be considered to be performing well.
Google boasts the highest conversion rates of 8.2 per cent according to data from Heap, while Bing has a 7.6 per cent conversion rate.
TOP TIP: HubSpot notes that 92 per cent of companies who blogged multiple times a day acquired a customer through their blog. Something to keep in mind when thinking about your marketing campaigns.
This social media tool is certainly one to watch right now for marketers with its new shopping feature becoming increasingly common across the platform.
More and more businesses are opting into using Instagram as one of its main marketing tools following the release of Instagram Business profiles and new ad platforms.
According to Instagram, 80 per cent of users say they follow at least one business on the app, with 60 per cent hearing about a product and service through the platform.
At least 30 per cent of Instagram users have purchased a product they first discovered on Instagram.
It’s current conversion rate is 3.1 per cent, but it has historically not allowed clickable links.
TOP TIP: With Instagram’s new updates coming to fruition, its conversion rate should shoot up within the next couple of years. It’s going to get even more useful, so watch this space!
Other than discerning which channels to focus on for your startup, there are other metrics that should be on your radar in marking the success of your campaigns…
The importance of Bounce Rate on conversion rates
As one of the most important metrics for any startups tracking their marketing activity, it’s essential to get to grips with it.
Bounce Rate is the percentage of single-page sessions in which the person left your site from the entrance page without interacting.
Many sites have a bounce rate of 45 to 50 per cent, with anything under 40 per cent is considered a success.
You might be seeing much higher numbers than this, due to a high percentage of your traffic coming from social media or paid ads. These visitors tend to have higher bounce rates and it can, therefore, drag your average down.
This could be fixed by looking closer at the targeting of the ads as it could be pulling in unqualified traffic due by featuring phrases that aren’t relevant. Other causes of an artificially high bounce rate include referrals or bot spam which frequently trawl through your site.
What can you do to improve bounce rates and to keep people on your website?
First of all you should ensure that you have intuitive navigation that is clear. If people get lost or confused on your site, they’re going to give up and leave. Homepages should use category buckets to direct visitors to the right product categories.
However, be aware that not everyone enters your site through the homepage, they’ll often come through a subpage or social. This makes it essential to include a call-to-action on every page, such as ‘contact us’, as it removes the user effort required to do what the business wants them to do.
DID YOU KNOW? Sixty three per cent of businesses say that generating traffic and leads is their company’s top marketing challenge.
What else should you be doing to ensure your marketing campaigns are successful?
For startups its always difficult to gauge the best ways to market your product from the get-go. That’s why we encourage you to do your own research, but also to ask for help from the people that have been doing it for years.
You could begin by copying your competitors to get the ball rolling as they may have already established themselves in a space using tried and tested methods. It’s ok to see their success and utilise their methods for your own benefits… just avoid plagiarism of course!
We encourage you to read up on blogs about marketing and strategy, go and see a consultant, even if it’s just for one meeting, and just ask around to get advice from peers who may have some insight.
Though if you’re looking to make sure your campaigns hit the spot, get in touch to find out what options are available to you.