The Myth of 2-3% Conversion
If you want a practical answer to benchmarking your conversion rate in Adwords. Perhaps you should listen to this guy: honest answer with a practical solution.
What do you think?
If anyone could dig into their data (AdWords, in particular) and pull out a reliable average conversion rate, it’s Google. Why don’t they? Honestly, I suspect the answer isn’t as positive as most people want to hear, which leads us to…
So, what is the average conversion rate? Maybe a better question is: what’s a good conversion rate? Honestly, that depends a lot. If you’re paying $1/click on PPC, have an impressive 10% conversion rate, but only make $2 in profit per sale, you’re still losing your shirt. Meanwhile, if your website drives leads for a $100,000 piece of equipment, even a 0.1% conversion rate could drive impressive revenues.
Consider another question: which of these situations would you rather be in?
100 visitors/day converting at 5%
500 visitors/day converting at 1%
5,000 visitors/day converting at 1%
I’m a big believer in trying to improve conversion, but at the end of the day, (1) and (2) are roughly equal (5 sales), and I’ll take (3) any day (50 sales), even if conversion is low. In addition, improving a 1% conversion rate is going to be much easier than increasing your traffic by 50X, so (3) also has the most room for improvement.
via The Myth of 2-3% Conversion.