Home Business What is a conversion rate and how to calculate it

What is a conversion rate and how to calculate it

What is a conversion rate and how to calculate it

Percentage of visitors completing a specific action, such as filling in a web form, making a purchase, or joining a service.

Your website will have a high conversion rate if it is attractive to your target audience, well-designed, and properly formatted. You can find reasons for a low conversion rate in both website performance and design. 

The reasons for a poor conversion rate include loading times, broken forms, and copy that does not communicate the value of the offer.

How can I maximize my conversion rate?

In addition to your audience demographics and traffic channel, “good” conversion rates depend on your industry and niche. 

In the third quarter of 2020, global ecommerce conversion rates were 2.17% compared to 2.37% the previous year. The rate of e-commerce conversion in the US was more favorable, however, at 2.57%.

Aside from varying by year and country, averages also differ by niche. In the food and beverage sector, for instance, the average conversion rate is 5.5% whereas in the hair care sector, it is 3.5%.

You may be experiencing a low conversion rate – it may be below average for your industry, below what your competitors are doing, or it may simply not meet your own goals – so it’s time to optimize.

Your website can convert visitors to customers on many different pages: your homepage, pricing page, landing page, blog, etc. Optimize each location of your website to maximize conversion of visitors to paying customers.

Let’s walk through calculating your site’s conversion rate before we examine the benefits of CRO. Therefore, you will have a clearer picture of the time and resources that should be devoted to the CRO process.

Calculating Conversion Rates

It is calculated by doing the following: dividing the conversion rate by the number of visitors, then multiplying that result by 100 to arrive at a percentage.

Calculating your conversion rate is straightforward as long as you understand how to define a conversion easily. It is as simple as plugging in two values and multiplying.

If every page of your site has an opt-in form, and a conversion is defined as a newsletter subscription, then a conversion would be a newsletter subscription. By multiplying the total number of newsletter sign-ups with the number of website visitors, you can estimate the total number of newsletter form submissions.

Accordingly, if you received 500 submissions last quarter and 20,000 visitors, your conversion rate was 2.5 percent.

For each conversion opportunity you have on your site, repeat this process. Ensure that you only track visitors to the pages containing the offer.

The conversion rate of a book offer, for example, is calculated when you divide the total number of people who visited the pages where the book offer appears by the total number of people who downloaded the book.

In addition, you can determine the overall conversion rate of your site by dividing the total conversions for each opportunity by the total number of visitors to your website.

Conversion Rate Optimization : Meaning

Increasing the rate at which website visitors take a desired action (such as completing a form), known as conversion rate optimization (CRO).

During the CRO process, you need to figure out how your users interact with your site, exactly what actions they take, and what obstacles are standing between them and achieving your goals.

How does a conversion work?

In general, conversions refer to visitors completing a goal on a site. These goals can be of any size or shape. The primary goal of your website for a product seller is to receive an order from the user. This is called the macro-conversion.  Prior to completing a macro-conversion, users can complete smaller conversions, such as signing up for emails. This is called a micro-conversion.

An example of converting

A macro-conversion is:

  • Making a purchase on the site
  • Sending a quote request
  • A subscription to a service

Micro-conversion examples:

  • Subscribing to email lists
  • Account creation
  • Carting up a product

What is a conversion rate for SEO?

Divide your site’s traffic by the number of times your users complete a goal to get your conversion rate. 

The number of conversions divided by the number of sessions (the number of times a user visits the site) is the number of conversions per session (the number of times a user purchases a product). 


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