Conversion

What is a Click-Through Rate and How Do You Increase It?

what-is-a-click-through-rate-and-how-do-you-increase-it?

If you’re sending emails or running ads, you’ve likely noticed a metric called the click-through rate or CTR. This metric is individual to each communication you send customers. Click-through rates are essential to understanding how effective your advertisement or communication is. 

What is a click-through rate or CTR?

A click-through rate (CTR) is the percentage of people clicking on a link or call-to-action within a specific communication. The higher the click-through rate is, the more people clicked on a call-to-action that were sent a message.

What is a good click-through rate?

Click-through rates are on average 1.66% for ecommerce (Source: Hubspot). The higher your click-through rate is, the better. 

Email: The average click-through rate for email is 2.5%.

Facebook Messenger & SMS: The average click-through rate for Facebook Messenger and SMS is 43%.

How is a click-through rate calculated?

For advertisements (like Facebook ads):

[ clicks ÷ ad impressions ] x 100 = click-through rate (CTR) in percentage

For communications sent (like emails, Facebook Messenger, or SMS): 

[ clicks ÷ emails or messages sent ] x 100 = click-through rate (CTR) in percentage

Why is it important to increase your click-through rate?

The higher your click-through rate is, the more people are selecting your call-to-action. This means that if your conversion objective is for your audience to make a purchase from the call-to-action, increasing your click-through rate can increase the conversions that lead to purchase. 

How to increase your click-through rate or CTR?

The fastest way to increase your click-through rate or CTR is to use channels that have traditionally higher click-through rates. For example, expanding your messages from email with 2.5% average click-through rates to Facebook Messenger or SMS which has 43% average click-through rates.

Beyond expanding channels, click-through rates can be largely impacted by your call-to-action’s placement in the advertisement or message, the language of the call-to-action, or the what the message is altogether. Once you’re using channels with the highest click-through rates, you can test the copy and call-to-action to see what works for your audience. 

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This article was originally published by our friends at OctaneAI.

About the author

Steve Hutt

Steve has entrepreneurship in his DNA. In the early days of online commerce, he achieved Power Seller status at eBay, which then propelled him to become a founding partner of VisionPros.com, a contact lens, and eyewear retailer. After a successful exit from his startup, he embarked on his next journey into agency work in e-commerce and digital strategy.

Currently, Steve is part of the Merchant Success Team at Shopify Plus, where he is a Strategic Advisor helping brands continue to grow and scale with the Shopify Commerce Platform.

To maintain a competitive edge and life of learning mantra, Steve also hosts and produces a top-rated weekly podcast show, eCommerce Fastlane, where he interviews Shopify partners and subject matter experts who share the latest marketing strategy, tactics, platforms, and must-have apps, to help Shopify brands build and scale lifetime customer loyalty.