Online businesses have plenty of room for improvement, with 39% saying they are dissatisfied with their conversion rates, and just a quarter claiming to be either 'very' or 'quite' satisfied.
This is one of the findings from our Conversion Report, produced in association with RedEye, which presents the results of a survey of 700 company and agency respondent about their approach to conversion rates.
While companies have concerns over their conversions, agency respondents were more optimistic, with nearly half (46%) saying their clients are typically satisfied with conversion rates. Rates are improving though with 70% of companies and 82% of agencies reporting an increase over the last 12 months.
Here are a few other highlights from the research:
- More than two thirds of companies (68%) measure overall site conversion to sale (shown below), compared to half (54%) who measure overall site conversion to response, while agency responses were similar (70% and 59%).
- Segmentation improves conversion. Organisations whose online conversion performance had improved over the previous 12 months looked at twice the number of segments as those whose rates have not improved.
- The main types of segmentation carried out are: demographic (39%) geographic (36%) and behavioural (33%). Some are clearly missing a trick, as 13% of companies do not segment at all.
- Over half of companies (56%) use segmentation for customer analysis, and 50% use it for email personalisation, with search engine marketing lower down the list of priorities:
Barriers to improvement
- The biggest obstacle to improving conversion rates is a "lack of resources" (cited by 47% of respondents), though there is some disagreement here between company and agency respondents.
- Only a third of agencies (33%) said that the lack of resources was an issue holding back improvements to conversion rates, with more (40%) pointing to a "lack of budget".