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Personalization Glossary

A/B testing? Recommendation models? The personalization engine space uses several acronyms that may seem daunting, so we're here to help. You can find definitions to the most common e-commerce customer experience optimization terms here!

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Conversion Rate

Retailers use conversion rates to measure how many website visitors perform a specific action. This could be completing a purchase, joining a mailing list, requesting more information, etc.

In any paid marketing strategy, the conversion is the primary focus metric, if visitors aren’t converting for your advertising/marketing what’s the purpose of performing it over and over again?? Conversion rate optimisation helps marketers optimise and run targeted ads that help improve conversion for every buck they bet on PPC ads, this is one of the best ways to identify the best strategy that converts most of the visitors. 

What is a good-conversation rate as per industry standard?

Is achieving 5%-10% a good conversion rate? As per industry research, the average conversion rate of landing pages is 2.5% but when looked deeper, the top 25% of the conversion funnel converts at 5.31% or higher. Essentially if you want to reach the top 10% of your conversion funnel then the landing pages should achieve close to 11.45% conversion rate on average. 

After analysing thousands of Google Ads which are accounts when combined come about $3 billion in annual out of which we identified that some advertisers are converting at rates two to three times the average conversation. Is performing extremely well in conversion your goal or you want to be average in conversions? 

Through some extensive analysis of data on landing pages industry experts were able to identify some specific traits of best-converting landing pages. What are they doing differently than you? How are they significantly converting more on their landing pages? If looked deeper there aren’t different things but there are optimal ways these optimisations or advertisements can be delivered to your target audience. 

What is a Good Conversion Rate?

As per recent industry research, a good conversion rate is close to 2-5%. If your recurring conversion is firmly sitting at 3% then 6% conversion would be a massive jump. You must have doubled your conversion rate but you would still be at the lower level of conversion bucket. 

Rate= Number of desired completed actions/number of visitors 

If a website isn’t achieving the desired conversion rate, usually customer service is optimized. This usually involves solid analytics and smart personalization. 

Retailers may also improve their conversion rates by carefully considering and adapting the customer experience in terms of ease of use and clear navigation. This means they can easily discern where to click next to find the desired information.

Navigate between the letters, to explore the glossary terms

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