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What Is Conversion Rate & How Do You Calculate It

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What Is Conversion Rate & How Do You Calculate It

Conversion rate is one of the most common metrics used by marketers, sales folks, and business professionals.

It is discussed often and taken on the surface as an important metric or key performance indicator (KPI) for most businesses.

However, it can also be misapplied, misunderstood, or improperly established for use as a key metric.

It is important to revisit conversions, conversion rates, and the use of the metric periodically.

It is even more important for any new initiative to have the metric well defined and understood before positioning it as a key KPI.

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In this guide, I’m going to dive deeply into what conversion rate is, how to calculate it, why that’s important, and ways to improve it.

What Is Conversion Rate?

Google provides one of the more concise definitions of conversion rate:

“Conversion rates are calculated by simply taking the number of conversions and dividing that by the number of total ad interactions that can be tracked to a conversion during the same time period.”

Now, let’s get into what it all means.

Conversions

Unlike some business and marketing metrics, understanding conversion rates require some self-definition.

It starts with defining what a conversion is – which can mean different things for varying types of brands and organizations.

You can have more than one type of conversion. As a goal, you can have it factored into a marketing funnel or customer journey. Or, it could be a firm financial metric your business hinges on.

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Step one is to clearly define what a conversion is for you.

One of the most common definitions I see relates to someone becoming a lead for a business that is focused on driving leads via its website.

Another applies to ecommerce businesses, where the conversion is the completed sale transaction.

Other common definitions include certain engagement metrics for businesses that rely on ad revenue generated by page views.

Secondary types of conversions get into events, engagement, and other things like email signups that help support funnels, customer journeys, and overall sales processes.

Conversion Rate

Conversion rate is a %.

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In high-level terms, it tells you the % of how many people came to your site who took the conversion goal action you defined.

Some sources provide benchmarks for specific industries or areas to help you understand a good conversion rate and offer some objectivity.

I’m not telling you to copy your competitors, but I think if you want to value conversion rate, you need internal and external research to validate where you stand and where you want to be.

Match this up with your persona research, target audiences, marketing funnels, and customer journeys.

You likely know what you want your site visitors and audience to do.

How many of them do you want to do it? How big is the universe of your target audience? What is realistic regarding the number of total visitors you think you can get?

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Find answers to these questions along with mapping out your conversion goals and conversion rate goals.

How Do You Calculate Conversion Rate?

Conversion Rate Formula

The formula to calculate the conversion rate is straightforward:

Conversions / Visits* = Conversion Rate

*I have to include an asterisk, though, as some definitions might not be as straightforward.

You could also call these “clicks” or “sessions” or look at them more granularly.

My definition here can be adapted based on the language and definitions used by your analytics platform and your other KPIs.

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An example in calculating conversion rate for my site (a marketing agency providing services to clients) with the inputs and calculation:

  • August 2022 website visits: 1,122.
  • August 2022 contact form submissions (my conversions): 61.
  • 61 conversions/1,122 visits = 5.4% conversion rate.

Getting It Right

Again, conversions are custom-defined by you.

It can be a common conversion goal like a lead form submission, something more secondary, or something more obscure.

That part can be somewhat custom or variable for you as well.

You can look at it as clicks to a website from a specific channel or ad campaign.

You can get really granular with the segmentation of your data, source and channel filtering, and even with the definitions themselves.

That becomes especially variable or custom if you’re tracking specific actions that lead up to a conversion goal and how granular you want to be with it.

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Make sure the definition of what you’re counting as a conversion and what you’re counting as the total audience (clicks, visits, or some other “total” metric) is mapped out in a meaningful way.

Why Do I Need To Be Able To Calculate Conversion Rate?

First, where do you measure and track conversion rate? You can use Google Analytics, other analytics suites, or any data you must manually calculate.

Google Analytics

If you’re relying on Google Analytics (GA), you’ll want to ensure you have your “Goals” set up properly and test them. Conversions are reported based on the goals you configure.

Out of the box, Google has no context as to what a conversion is for you and no ability to calculate a conversion rate off of it.

If you use GA, dive into conversion goal configuration and testing to ensure things are in a good place before you trust the metrics you see (if you inherited the setup) or move forward with any measurement and improvement plan.

And, speaking of mapping out – tracking and measurement are critical.

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You want to ensure that your tech stack and tools can help you properly track visits, conversions, and the overall conversion rate in alignment with your definitions and goals.

Getting this right is critical, whether it is Google Analytics or third-party reporting tools.

Segmentation & Filtering

Plus, you’re able to then segment at the levels you want to with examples, including:

  • By conversion type (if you have more than one).
  • All website traffic.
  • By source or channel.
  • By pages/actions/events in the session.
  • By campaign or initiative.

There are many more segments and ways to filter and slice up conversions and conversion rate reporting.

You want to be able to calculate the conversion rate and get into the details with segments of traffic and your audience to help understand where you can improve.

What Is a Good Conversion Rate?

Calculating conversion rates and having the data is one thing; using it to make improvements is where the real work starts.

Improving Conversion Rates

You can look for improvement in two broad areas, and I strongly recommend evaluating both.

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One is sources of traffic and the influences that drive visitors to your site.

That includes advertising, referrals, and any awareness activities and campaigns you have that generate traffic.

The other area consists of what influences the traffic that has already arrived at the site – things like UX/UI evaluation, review of messaging, calls to action, and ways that users navigate through and engage with the site.

Improvement in this arena is often called Conversion Rate Optimization or CRO.

Traffic Sources Optimization

In the case of the traffic you’re sending to the site, you can look at targeting, ad creative, and keywords you’re organically ranking for – the ways that ad targeting and creative provide the first impression or directly funnel traffic into the site.

There are a variety of optimization and refinement tactics to shift your focus to higher quality traffic and aim to increase conversion rate by getting more qualified visitors from external sources that you influence.

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Beware, though, that you need to have a good idea of your customer journey and not knock out traffic that is awareness focused or at the top of the funnel (e.g., traffic tied to thought leadership).

Increasing the conversion rate is important, but make sure you segment well enough to not inadvertently stop targeting the top of the funnel, awareness-level visitors, and sources.

Conversion Rate Optimization

Now, onto looking inward at the traffic you already have.

This is where most people start digging into CRO tactics. Web analytics can help you see where people exit, bounce, and stop short of getting to your conversion actions.

Beyond that, great heat mapping and CRO tools will give you insights into UX and UI issues and how people truly engage with your site versus how you intended in your design.

By focusing on CRO and putting a strategy into place, you can evaluate everything from site speed to content, messaging, and UI.

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I strongly encourage you to do so.

Conclusion

Conversion rate continues to be a valuable marketing metric.

Understanding it, defining it for your organization, measuring it, and improving it are all important.

Whether you have a small business or enterprise-level website, you likely care about specific conversion goals.

In short – for conversions and conversion rate – understand, define, measure, and improve it.

Yes, we all want more traffic. And maybe a static conversion rate is fine if you add more traffic.

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However, wouldn’t you like more traffic and a higher conversion rate?

It is possible to have both, and crucial to understanding what levers to pull to influence it.

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How To Write ChatGPT Prompts To Get The Best Results

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How To Write ChatGPT Prompts To Get The Best Results

ChatGPT is a game changer in the field of SEO. This powerful language model can generate human-like content, making it an invaluable tool for SEO professionals.

However, the prompts you provide largely determine the quality of the output.

To unlock the full potential of ChatGPT and create content that resonates with your audience and search engines, writing effective prompts is crucial.

In this comprehensive guide, we’ll explore the art of writing prompts for ChatGPT, covering everything from basic techniques to advanced strategies for layering prompts and generating high-quality, SEO-friendly content.

Writing Prompts For ChatGPT

What Is A ChatGPT Prompt?

A ChatGPT prompt is an instruction or discussion topic a user provides for the ChatGPT AI model to respond to.

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The prompt can be a question, statement, or any other stimulus to spark creativity, reflection, or engagement.

Users can use the prompt to generate ideas, share their thoughts, or start a conversation.

ChatGPT prompts are designed to be open-ended and can be customized based on the user’s preferences and interests.

How To Write Prompts For ChatGPT

Start by giving ChatGPT a writing prompt, such as, “Write a short story about a person who discovers they have a superpower.”

ChatGPT will then generate a response based on your prompt. Depending on the prompt’s complexity and the level of detail you requested, the answer may be a few sentences or several paragraphs long.

Use the ChatGPT-generated response as a starting point for your writing. You can take the ideas and concepts presented in the answer and expand upon them, adding your own unique spin to the story.

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If you want to generate additional ideas, try asking ChatGPT follow-up questions related to your original prompt.

For example, you could ask, “What challenges might the person face in exploring their newfound superpower?” Or, “How might the person’s relationships with others be affected by their superpower?”

Remember that ChatGPT’s answers are generated by artificial intelligence and may not always be perfect or exactly what you want.

However, they can still be a great source of inspiration and help you start writing.

Must-Have GPTs Assistant

I recommend installing the WebBrowser Assistant created by the OpenAI Team. This tool allows you to add relevant Bing results to your ChatGPT prompts.

This assistant adds the first web results to your ChatGPT prompts for more accurate and up-to-date conversations.

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It is very easy to install in only two clicks. (Click on Start Chat.)

Screenshot from ChatGPT, April 2024

For example, if I ask, “Who is Vincent Terrasi?,” ChatGPT has no answer.

With WebBrower Assistant, the assistant creates a new prompt with the first Bing results, and now ChatGPT knows who Vincent Terrasi is.

Enabling reverse prompt engineeringScreenshot from ChatGPT, March 2023

You can test other GPT assistants available in the GPTs search engine if you want to use Google results.

Master Reverse Prompt Engineering

ChatGPT can be an excellent tool for reverse engineering prompts because it generates natural and engaging responses to any given input.

By analyzing the prompts generated by ChatGPT, it is possible to gain insight into the model’s underlying thought processes and decision-making strategies.

One key benefit of using ChatGPT to reverse engineer prompts is that the model is highly transparent in its decision-making.

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This means that the reasoning and logic behind each response can be traced, making it easier to understand how the model arrives at its conclusions.

Once you’ve done this a few times for different types of content, you’ll gain insight into crafting more effective prompts.

Prepare Your ChatGPT For Generating Prompts

First, activate the reverse prompt engineering.

  • Type the following prompt: “Enable Reverse Prompt Engineering? By Reverse Prompt Engineering I mean creating a prompt from a given text.”
Enabling reverse prompt engineeringScreenshot from ChatGPT, March 2023

ChatGPT is now ready to generate your prompt. You can test the product description in a new chatbot session and evaluate the generated prompt.

  • Type: “Create a very technical reverse prompt engineering template for a product description about iPhone 11.”
Reverse Prompt engineering via WebChatGPTScreenshot from ChatGPT, March 2023

The result is amazing. You can test with a full text that you want to reproduce. Here is an example of a prompt for selling a Kindle on Amazon.

  • Type: “Reverse Prompt engineer the following {product), capture the writing style and the length of the text :
    product =”
Reverse prompt engineering: Amazon productScreenshot from ChatGPT, March 2023

I tested it on an SEJ blog post. Enjoy the analysis – it is excellent.

  • Type: “Reverse Prompt engineer the following {text}, capture the tone and writing style of the {text} to include in the prompt :
    text = all text coming from https://www.searchenginejournal.com/google-bard-training-data/478941/”
Reverse prompt engineering an SEJ blog postScreenshot from ChatGPT, March 2023

But be careful not to use ChatGPT to generate your texts. It is just a personal assistant.

Go Deeper

Prompts and examples for SEO:

  • Keyword research and content ideas prompt: “Provide a list of 20 long-tail keyword ideas related to ‘local SEO strategies’ along with brief content topic descriptions for each keyword.”
  • Optimizing content for featured snippets prompt: “Write a 40-50 word paragraph optimized for the query ‘what is the featured snippet in Google search’ that could potentially earn the featured snippet.”
  • Creating meta descriptions prompt: “Draft a compelling meta description for the following blog post title: ’10 Technical SEO Factors You Can’t Ignore in 2024′.”

Important Considerations:

  • Always Fact-Check: While ChatGPT can be a helpful tool, it’s crucial to remember that it may generate inaccurate or fabricated information. Always verify any facts, statistics, or quotes generated by ChatGPT before incorporating them into your content.
  • Maintain Control and Creativity: Use ChatGPT as a tool to assist your writing, not replace it. Don’t rely on it to do your thinking or create content from scratch. Your unique perspective and creativity are essential for producing high-quality, engaging content.
  • Iteration is Key: Refine and revise the outputs generated by ChatGPT to ensure they align with your voice, style, and intended message.

Additional Prompts for Rewording and SEO:
– Rewrite this sentence to be more concise and impactful.
– Suggest alternative phrasing for this section to improve clarity.
– Identify opportunities to incorporate relevant internal and external links.
– Analyze the keyword density and suggest improvements for better SEO.

Remember, while ChatGPT can be a valuable tool, it’s essential to use it responsibly and maintain control over your content creation process.

Experiment And Refine Your Prompting Techniques

Writing effective prompts for ChatGPT is an essential skill for any SEO professional who wants to harness the power of AI-generated content.

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Hopefully, the insights and examples shared in this article can inspire you and help guide you to crafting stronger prompts that yield high-quality content.

Remember to experiment with layering prompts, iterating on the output, and continually refining your prompting techniques.

This will help you stay ahead of the curve in the ever-changing world of SEO.

More resources: 


Featured Image: Tapati Rinchumrus/Shutterstock

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Measuring Content Impact Across The Customer Journey

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Measuring Content Impact Across The Customer Journey

Understanding the impact of your content at every touchpoint of the customer journey is essential – but that’s easier said than done. From attracting potential leads to nurturing them into loyal customers, there are many touchpoints to look into.

So how do you identify and take advantage of these opportunities for growth?

Watch this on-demand webinar and learn a comprehensive approach for measuring the value of your content initiatives, so you can optimize resource allocation for maximum impact.

You’ll learn:

  • Fresh methods for measuring your content’s impact.
  • Fascinating insights using first-touch attribution, and how it differs from the usual last-touch perspective.
  • Ways to persuade decision-makers to invest in more content by showcasing its value convincingly.

With Bill Franklin and Oliver Tani of DAC Group, we unravel the nuances of attribution modeling, emphasizing the significance of layering first-touch and last-touch attribution within your measurement strategy. 

Check out these insights to help you craft compelling content tailored to each stage, using an approach rooted in first-hand experience to ensure your content resonates.

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Whether you’re a seasoned marketer or new to content measurement, this webinar promises valuable insights and actionable tactics to elevate your SEO game and optimize your content initiatives for success. 

View the slides below or check out the full webinar for all the details.

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How to Find and Use Competitor Keywords

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How to Find and Use Competitor Keywords

Competitor keywords are the keywords your rivals rank for in Google’s search results. They may rank organically or pay for Google Ads to rank in the paid results.

Knowing your competitors’ keywords is the easiest form of keyword research. If your competitors rank for or target particular keywords, it might be worth it for you to target them, too.

There is no way to see your competitors’ keywords without a tool like Ahrefs, which has a database of keywords and the sites that rank for them. As far as we know, Ahrefs has the biggest database of these keywords.

How to find all the keywords your competitor ranks for

  1. Go to Ahrefs’ Site Explorer
  2. Enter your competitor’s domain
  3. Go to the Organic keywords report

The report is sorted by traffic to show you the keywords sending your competitor the most visits. For example, Mailchimp gets most of its organic traffic from the keyword “mailchimp.”

Mailchimp gets most of its organic traffic from the keyword, “mailchimp”.Mailchimp gets most of its organic traffic from the keyword, “mailchimp”.

Since you’re unlikely to rank for your competitor’s brand, you might want to exclude branded keywords from the report. You can do this by adding a Keyword > Doesn’t contain filter. In this example, we’ll filter out keywords containing “mailchimp” or any potential misspellings:

Filtering out branded keywords in Organic keywords reportFiltering out branded keywords in Organic keywords report

If you’re a new brand competing with one that’s established, you might also want to look for popular low-difficulty keywords. You can do this by setting the Volume filter to a minimum of 500 and the KD filter to a maximum of 10.

Finding popular, low-difficulty keywords in Organic keywordsFinding popular, low-difficulty keywords in Organic keywords

How to find keywords your competitor ranks for, but you don’t

  1. Go to Competitive Analysis
  2. Enter your domain in the This target doesn’t rank for section
  3. Enter your competitor’s domain in the But these competitors do section
Competitive analysis reportCompetitive analysis report

Hit “Show keyword opportunities,” and you’ll see all the keywords your competitor ranks for, but you don’t.

Content gap reportContent gap report

You can also add a Volume and KD filter to find popular, low-difficulty keywords in this report.

Volume and KD filter in Content gapVolume and KD filter in Content gap

How to find keywords multiple competitors rank for, but you don’t

  1. Go to Competitive Analysis
  2. Enter your domain in the This target doesn’t rank for section
  3. Enter the domains of multiple competitors in the But these competitors do section
Competitive analysis report with multiple competitorsCompetitive analysis report with multiple competitors

You’ll see all the keywords that at least one of these competitors ranks for, but you don’t.

Content gap report with multiple competitorsContent gap report with multiple competitors

You can also narrow the list down to keywords that all competitors rank for. Click on the Competitors’ positions filter and choose All 3 competitors:

Selecting all 3 competitors to see keywords all 3 competitors rank forSelecting all 3 competitors to see keywords all 3 competitors rank for
  1. Go to Ahrefs’ Site Explorer
  2. Enter your competitor’s domain
  3. Go to the Paid keywords report
Paid keywords reportPaid keywords report

This report shows you the keywords your competitors are targeting via Google Ads.

Since your competitor is paying for traffic from these keywords, it may indicate that they’re profitable for them—and could be for you, too.

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You know what keywords your competitors are ranking for or bidding on. But what do you do with them? There are basically three options.

1. Create pages to target these keywords

You can only rank for keywords if you have content about them. So, the most straightforward thing you can do for competitors’ keywords you want to rank for is to create pages to target them.

However, before you do this, it’s worth clustering your competitor’s keywords by Parent Topic. This will group keywords that mean the same or similar things so you can target them all with one page.

Here’s how to do that:

  1. Export your competitor’s keywords, either from the Organic Keywords or Content Gap report
  2. Paste them into Keywords Explorer
  3. Click the “Clusters by Parent Topic” tab
Clustering keywords by Parent TopicClustering keywords by Parent Topic

For example, MailChimp ranks for keywords like “what is digital marketing” and “digital marketing definition.” These and many others get clustered under the Parent Topic of “digital marketing” because people searching for them are all looking for the same thing: a definition of digital marketing. You only need to create one page to potentially rank for all these keywords.

Keywords under the cluster of "digital marketing"Keywords under the cluster of "digital marketing"

2. Optimize existing content by filling subtopics

You don’t always need to create new content to rank for competitors’ keywords. Sometimes, you can optimize the content you already have to rank for them.

How do you know which keywords you can do this for? Try this:

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  1. Export your competitor’s keywords
  2. Paste them into Keywords Explorer
  3. Click the “Clusters by Parent Topic” tab
  4. Look for Parent Topics you already have content about

For example, if we analyze our competitor, we can see that seven keywords they rank for fall under the Parent Topic of “press release template.”

Our competitor ranks for seven keywords that fall under the "press release template" clusterOur competitor ranks for seven keywords that fall under the "press release template" cluster

If we search our site, we see that we already have a page about this topic.

Site search finds that we already have a blog post on press release templatesSite search finds that we already have a blog post on press release templates

If we click the caret and check the keywords in the cluster, we see keywords like “press release example” and “press release format.”

Keywords under the cluster of "press release template"Keywords under the cluster of "press release template"

To rank for the keywords in the cluster, we can probably optimize the page we already have by adding sections about the subtopics of “press release examples” and “press release format.”

3. Target these keywords with Google Ads

Paid keywords are the simplest—look through the report and see if there are any relevant keywords you might want to target, too.

For example, Mailchimp is bidding for the keyword “how to create a newsletter.”

Mailchimp is bidding for the keyword “how to create a newsletter”Mailchimp is bidding for the keyword “how to create a newsletter”

If you’re ConvertKit, you may also want to target this keyword since it’s relevant.

If you decide to target the same keyword via Google Ads, you can hover over the magnifying glass to see the ads your competitor is using.

Mailchimp's Google Ad for the keyword “how to create a newsletter”Mailchimp's Google Ad for the keyword “how to create a newsletter”

You can also see the landing page your competitor directs ad traffic to under the URL column.

The landing page Mailchimp is directing traffic to for “how to create a newsletter”The landing page Mailchimp is directing traffic to for “how to create a newsletter”

Learn more

Check out more tutorials on how to do competitor keyword analysis:

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