What's a good conversion rate?

What Is a Good Conversion Rate?

How Visitors Become Active Customers

Conversion rate optimization determines whether a website is merely visited—or actually generates revenue. Every day, companies invest in traffic through SEO, Google Ads, or social media, yet a large portion of visitors leave without taking any action. The central problem is not the traffic itself, but the lack of proper conversion optimization on the website.

If a website is not specifically designed to activate and motivate users, even high traffic remains economically ineffective.

Most websites convert only a small fraction of their visitors, even though the potential is significantly higher. Even small optimizations can substantially increase conversion rates and multiply revenue, leads, or customer inquiries—without increasing advertising budgets.

This is exactly where professional conversion rate optimization comes in: it analyzes why visitors do not take action and systematically improves structure, user guidance, and motivation to sustainably increase conversion rates.

What Is Conversion Rate Optimization and Why Is It More Important Than More Traffic?

To truly understand conversion rate optimization, it is first necessary to define what a conversion is. A conversion is any desired action that a visitor performs on a website. This could be a purchase in an online shop, submitting a contact form, signing up for a newsletter, or creating an account.

The conversion rate measures the percentage of visitors who complete this desired action.

For example, if 100 people visit a page and three make a purchase, the conversion rate is 3%.

However, the definition of conversion rate optimization goes far beyond this metric. Conversion rate optimization describes the systematic process of improving a website so that a larger percentage of visitors take action. The goal is not to increase traffic, but to use existing traffic more efficiently.

Every improvement in structure, user guidance, communication, and motivation helps increase conversion rates and generate more customers from existing visitors.

The economic advantage lies in leverage. If a website receives 1,000 visitors per month and the conversion rate increases from 2% to 4%, the results double without any additional traffic. Increasing traffic alone would typically require significantly higher investment.

For this reason, conversion rate optimization is considered one of the most profitable measures in digital marketing—especially in e-commerce, where increasing conversion rates without proportionally increasing ad spend has a direct impact on profitability.

The enormous potential exists because most websites lose the majority of their visitors. Typically, only 2% to 5% convert, while 95% to 98% leave without taking action. This behavior is rarely random.

Often, websites lack clear calls to action, intuitive user guidance, or sufficient motivation. Visitors feel uncertain, overwhelmed, or fail to see immediate value.

Conversion rate optimization addresses these issues directly. By reducing friction, increasing clarity, and strengthening motivation, websites can guide visitors more effectively through the decision process and sustainably increase conversions.

What Is a Good Conversion Rate in E-Commerce?

The question of what constitutes a good conversion rate is one of the most common in digital marketing. Average benchmarks typically range from 2% to 5%, although higher or lower rates are common depending on industry and product type.

Adobe reported an average e-commerce conversion rate of 3.65%, with realistic ranges between 1% and 6%. Key influencing factors include product niche, purchasing power of the target audience, and especially the website’s UX.

Even within the same industry, conversion rates can differ significantly depending on website optimization.

For example, comparing two of the most well-known women’s fashion brands in Europe—Zara and H&M—illustrates this clearly. Zara is reported to have conversion rates of around 1.5% to 2%, while H&M achieves conversion rates of up to 3.5%.

This difference is not due to industry or audience, but primarily due to differences in user experience, structure, and decision friction.

H&M’s user experience is intentionally simpler and aligned with familiar patterns users already know from other online shops. Navigation, product presentation, and checkout follow predictable structures, reducing cognitive load and making decisions easier.

Zara, on the other hand, prioritizes a unique, brand-focused design that strengthens brand identity but can introduce additional friction in the decision process.

This demonstrates that conversion rate is not determined solely by brand strength or traffic, but largely by friction within the user experience.

Ultimately, the optimal strategy depends on business goals. Strong brand differentiation may build long-term brand equity, while simplified user guidance typically increases short-term conversion rates.

Conversion rate optimization is therefore not about simplifying everything—it is about strategically deciding where to prioritize brand experience and where to prioritize conversion efficiency.

Why Is Conversion Rate Low in E-Commerce?

1. Lack of Trust and Uncertainty

One of the biggest barriers in e-commerce is uncertainty. If users do not trust the product quality, return policies, or payment process, conversion rates drop significantly.

Trust is a central element of conversion psychology and directly influences whether users are willing to make financial decisions.

2. High Cognitive Load and Complex User Experience

Unclear navigation, too many options, or complicated checkout processes increase mental effort. Every additional decision reduces the likelihood of conversion.

High usability, on the other hand, leads to higher conversion rates because the process feels simple and predictable.

3. Lack of Clear or Compelling Calls to Action

If the next step is unclear, users hesitate or leave. Effective call-to-action optimization ensures users always know what to do next.

Clarity reduces uncertainty and increases conversion probability.

4. Lack of Emotional Activation and Low Motivation

Purchasing decisions are rarely purely rational. Emotions play a critical role.

If products are presented without emotional relevance, perceived value, or identity connection, users remain passive and do not take action.

5. Lack of Progress Feedback During the Purchase Process

Humans respond strongly to progress and momentum. If the purchase process does not provide clear progress signals, engagement decreases.

Progress indicators, step-based flows, and gamification principles can significantly increase completion rates.

What Is a Good Conversion Rate on B2B Landing Pages?

Conversion rates on B2B landing pages differ fundamentally from e-commerce conversion rates.

In e-commerce, conversions require financial transactions. In B2B, conversions often involve lower-commitment actions, such as submitting contact information.

Because the entry barrier is lower, conversion rates are typically higher.

Well-optimized B2B landing pages commonly achieve conversion rates between 5% and 10%, with highly optimized cases exceeding 10%.

However, conversion rate alone is not sufficient. Lead quality is equally important.

A high conversion rate loses value if the generated leads lack genuine purchase intent.

Effective B2B conversion rate optimization considers the entire funnel—from initial lead capture to final sales conversion.

The goal is not simply maximizing lead volume, but generating qualified leads that contribute to revenue growth.

Why Do Users Not Convert on B2B Landing Pages?

1. Unclear or Generic Value Proposition

Users must immediately understand why submitting their information is valuable. Lack of clarity is one of the most common conversion barriers.

2. High Perceived Effort

Long forms and complex processes increase mental friction and reduce conversions. Even small structural improvements can significantly increase submission rates.

3. Lack of Trust or Perceived Risk

Users share personal or business information only when trust is established. Missing references, unclear positioning, or unprofessional design reduce trust.

4. Lack of Clear Next Steps

If users do not know what to do next, they hesitate. Clear calls to action and strong user guidance increase conversion rates.

5. Lack of Momentum or Activation

Momentum is essential in both e-commerce and B2B.

Progress indicators, structured steps, and gamification principles help reduce psychological barriers and increase engagement and conversion probability.

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