We understand CR in PPC campaigns as the percentage of people who buy our product out of all those who have visited our product listing. This is a very simple calculation, all we need to know is the total number of PPC orders and the number of PPC clicks. Then, we divide the number of orders by the amount of clicks and we get the CR. Where the value is expressed as a percentage.
For example, if we have had 1000 PPC clicks on our ads and they have come to our listing and we get 100 orders. Of those initial 1000, only 100 have purchased the product, then the conversion rate would be:
The CR is an excellent metric to determine the correlation of our product offering with that of the competition. The higher our conversion rate, the more desirable the product listing is for the customer. Conversely, the lower our conversion rate, the less attractive it will be to users.
All we need to do to have a higher CR is to change our product listing. Therefore, we must completely change everything that is related to the product, the images, the bullet points, the main title, the keywords, the reviews, the price. That is to say, everything that influences the customer’s purchase decision when he/she is making the purchase process in our product listing. Since we are always interested in having a conversion rate as high as possible, there is no situation where we want to have a low conversion rate. That’s because with Amazon PPC we are paying per click, for each customer that comes to our product listing. Because we are paying for that customer, we want as many people as possible to convert, the more effective our PPC campaigns will be, and the lower the cost.
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