Loading...
Answers
MenuHow do I calculate a conversion rate for each paid plugin I offer on my website?
Lets say I have 100 members on my website. I have 5 plugins they can pay for.
I've been using a 2% conversion rate to estimate. But if I have 5 or 10 different plugin options that members can purchase do I say 2% will buy each? Or 2% will buy any of the 5 then average the value of the 5? Whats the formula?
Answers
Basically, conversion rate is goals divided by total visitors and multiplied by 100 to make it into a percentage.
So if you have 100 sales and 10,000 visitors, your conversion rate would be: 1%.
You need to measure 2 things in your case:
1. Conversion rate for each plugin.
2. Overall conversion rate for all sales.
2% estimate is a very, VERY broad benchmark marketers like to throw out there when asked for average conversion rate. It will be wrong.
Here's an article with average conversion rates segmented a bit, it is still not 100% accurate but it might just give you a bit more accuracy.
http://www.smartinsights.com/ecommerce/ecommerce-analytics/ecommerce-conversion-rates/
Re-reading the question, I get a feeling that you might be trying to do some planning, for business/marketing plan.
It doesn't matter how many members you have, because not everyone will buy and you will also have new visitors converting to members as they buy plugins.
Now you might need to segment your conversion rate:
1. Members
2. Visitors
3. Plugins
Keep in mind, each plugin will have it's own conversion rate so applying 2% rule for each will be wrong. Some will be popular, other's won't.
So.
If you want to use 2%, that should be your overall sales conversion rate. Then, you need to guesstimate sales for each plugin within those 2%.
Let's say:
You have 10,000 visitors, 2% conversion rate would give you 200 sales.
Now:
- Plugin A = 50 sales = 0.5% conversion rate
- Plugin B = 100 sales = 1% conversion rate
- Plugin C = 30 sales = 0.3% conversion rate
- Plugin D = 20 sales = 0.2% conversion rate
These are random numbers, you need to figure out which ones might be more popular than the rest to put some numbers on them.
Keep in mind that's for all visitors, members and new visitors. You can segment that to members by looking at how many sales were made by members, rather than everyone.
This is just basic overview to help you think it through. Hope that helps.
From the question it sounds like this is more about forecasting than it is about tracking but I could be incorrect on that. If I were tracking something like this for a client I would generally track a conversion when any item is purchased and then I would track the conversion value as the dollar amount of the actual transaction. You could also leverage Google Analytics e-commerce tracking to get good, detailed numbers on the items purchased and amounts of each item and of the total transaction.
Based on this logic your logic and a conversion rate of 2% you would have 2 conversions out of 100 visitors and a totally average sale value of $x where $x is the total value of the conversions added up and then divided by the number of conversions. If sale 1 was $50 and sale 2 was $100 then you would have a 2% conversion rate with an average transaction value of $75.
One option is a mouseclick software whereby you can track each click and where they are clicking or they have a heat map option. If I had 5 different plug-ins to purchase and I could track total unique visits to the site and the purchased amount of each one, you could easily come up with the answer. EX: 1,000 total unique visits, 100 purchases with an equal distribution of each plug-in means 20 were purchased of each. So 2% bought each plug-in but 10% converted total.
Related Questions
-
How to price conversion rate optimization?
I provide conversion optimisation services on a price per day on a rolling monthly basis. I did it this way, because my background is in software development consultancy and everything was estimated and billed out on a daily basis. I also provide one off services which is normally priced based on how long it would take to complete. I prefer to work with customers on a rolling monthly basis because I can have an impact on many aspects of their digital marketing and business processes. It means I'm also not tied to only creating split tests but have the freedom to advise and have a positive impact on multiple areas of a business.KM
-
Need to install a pop-up to convert visitors on our blog for a B2B SaaS product
Pop-ups are generally pretty obtrusive to the user experience and may actually have a negative impact on your conversion rates. I'd recommend refining and testing your calls-to-action (including offer, copy, image, & placement) to make sure those are as optimized as possible. I'd also recommend setting up your calls-to-action as "smart content" -- in other words, show different CTAs to your subscribers, leads, and customers so you're asking each visitor to take the next step that's most appropriate for them. Happy to discuss leveraging smart content in more detail if you're interested -- it's helped us tremendously in increasing our blog conversion rates.SB
-
[eCommerce] What are the most important parts of a product page to get the highest conversion rate possible?
There is a lots of important aspects of a product page here's a few to start: - Page should match your facebook ad style - Add to cart button should be professional looking - Proper description - Reviews & other social references - Live chat button - Exit pop I'm a conversion optimization expert I'd love to help here. I'm always one call away.JH
-
I'm looking to get off the Yahoo platform. Shopify seems to be nice, and BigCommerce just looks like a slightly better Yahoo. Thoughts?
Shopify is best use case for $0 to $1M ish, depending on product line, how many transactions that makes up, and if their are some custom things that are not possible on Shopify that realistically lead to huge gains that would cover more costs of a custom solution with something like magento. I recommend Shopify to everyone starting out. That's what we used at Diamond Candles up until about a $5M run rate. We were/are growing quickly so we hit a point where payoff of customizing checkout flow, add of social sign on, etc. that could not be done because of Shopify, would cover and surpass costs of a more custom option. Best to think about this simplistic example. View the ecom platform market in about 3 buckets. 1. Starting out: $0-$1M ish 2. Wow looks like you have a business: $1M-$20 or 50ish 3. You are/could be publicly traded: $50M+ Take a look at usage #'s for market share size from independent third party analytics tools from Builtwith: http://trends.builtwith.com/shop/Shopify/Market-Share http://trends.builtwith.com/shop http://trends.builtwith.com/shop/hosted-solution Just because something is found on the web more isn't the full picture. Ie. I could make a blogging platform and have a bunch of scripts and bots install it on millions of domains and I would have majority of the market for blogging platforms (ya that would take a while and isn't a realistic scenario but you can get the point). Providers dominating the different categories by companies in those areas actually doing volume and being succsessful? 1. Shopify, BigCommerce, Volusion, Magento GO, 2. Magento (varying editions), Yahoo Stores, Symphony Commerce 3. Demand Ware, GSI Commerce, Magento (varying editions) At the end of the day a good illustration goes like this. A truck and a moped are two different things. A truck is not trying to out 'moped' a moped and a moped not trying to out 'truck' a truck. They are both perfectly suited to different applications, situations, needs, and circumstances. The same goes with who you choose to handle your ecom platform. For 2-3 search for internet retailers first 500 and second 500 lists. Pull off all ecommerce companies doing between $10-$50M as an example. Use the builtwith.com chrome toolbar to tell you what platform they are using. Hire someone for $2 an hour via odesk to make a spreadsheet of everything and the make a pretty little pie chart. Now you know what each revenue volume level chooses as 1, 2, 3 preferred platforms. Option 3 as a side note but very important one, is primarily a platform and commerce as a service model with companies like Demand Ware and GSI Commerce leading the market with platform and services including but not limited to customer service for the brand, fulfillment, marketing services, website product photography etc. Their pricing models are based on gross revenue share. ie. SportsAuthority.com does $100M online this year, GSI takes 30% of that to cover everything. (I am not sure who Sports Authority uses, just an example) You can almost pick any traditional brick and mortar retailer and if they have a website where they sell things, they all do, GSI or DW are the people behind the scenes running the call centers, shipping etc. Diamond Candles, my company, who started on Shopify decided to not go with a the market dominating option of Magento for a few reasons. One of which being upfront cost for an agency or on staff magento CTO type. We decided to partner with a newer entrant, Symphony Commerce, which blends the 3rd category model of platform plus service. Rev. cut is significantly smaller than providers in category 3, but still get benefits of volume savings on shipping volume, scalable customer support that can handle rapid growth and occasional spikes without us having to worry about scaling or implementing best practices, and a fully customizable platform as a service so to speak that doesn't require us to have in house tech but where we are essentially renting part time ecommerce engineers from with resumes that list Google, FB, Twitter, Magento, Amazon, etc. So in summary. If you are <$1M in revenue just roll with Shopify. Greater than that but less than $50M ish then I would recommend looking into Symphony. If Symphony is interested in letting you in then you won't have to incur the upfront costs of an agency or implementation and you will have an ongoing partner equally incentivized i your long term success financially which I prefer as opposed to an agency model which economically is incentivized to offer a one time finished product and their revenue is not tied to my financial success. It is the closest thing to an equity partner while returning our full equity.JW
-
What are the content marketing best practices of converting blog visits into signups?
Having a smart call to action at the end of each blog post is generally a good practice. Make it stand out, and make sure to add value to the visitor by signing up. I strongly recommend A/B testing (also called split-testing) your sign up call to action. That's the only way for you to improve the results of the signup rate. In regards to the conversion rate it's extremely difficult to predict. Depends on your value proposition, quality of content, your industry and so much more. Best advice is just to get started and be smart about the a/b testing. If you are running Wordpress I can strongly recommend OptinMonster to manage your call to actions. Unlike other solutions you won't have to pay a fortune, and it's very good. I'd also like to throw some flame to the fire on the ever ongoing discussions about popups. They receive a lot of flak, but are extremely effective. You can expect up to 200% more signups by using exit intent popups. Again - make sure to offer value to the visitor.FH
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.