Conversion Rates are Relative – Costs are Hard, Cold Facts

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A question I am asked frequently is “what is the average conversion rate?”  Initially, I resisted responding to this question because comparing to an average is potentially misleading.  Every web business is fundamentally different in how it operates, markets, and merchandises.  Comparisons ultimately attempt to match apples to oranges. Nevertheless, clients are eager to get an answer.

A recent e-commerce study conducted by Forrester that I found in an article from the August 2007 edition of Target Marketing Magazine stated, “Forrester research indicates that the average conversion rate – that is the ratio of orders to overall site visits – is 2.9 percent.”