What is the conversion rate?

What is the conversion rate?

Simply put, conversion rates are the percentage of visitors to your website or landing page that convert (that is, perform the action you want). Depending on your business goals, "conversion" can be almost anything, but the most common types are:

•  Make purchases;

•  Completing and submitting a form (contact form, interested customer production form and the like);

•  Contact your company.

•  Use the online chat system of your website.

•  Activate a subscription (paid or free, such as a weekly newsletter subscription);

•  Register on the website and activate the account.

•  Download an item (an experimental software, e-book, mobile app and the like);

•  Use something (for example, new features or advanced software or even software or apps or apps you for a specified period).

•  Upgrading the services received (for example, upgrading a regular plan to a professional one);

•  More interaction with the site (increase the time spent on the website, more visits, more pages visited the site and the like).

There are many other conversion practices and behaviors, but these can shed light on the concept of "conversion." Conversion is essentially a measurable action that drives a potential customer to become an actual customer.

How to calculate the conversion rate?

Calculating the conversion rate is relatively easy. All you have to do is divide the number of conversions that take place over a period of time by the number of visitors to the site or landing page and multiply the number by 100 and express it as a percentage.

Conversion rate = (number of conversions ÷ total visitors) × 100%

For example, if your website received 17,492 visits in the last month, of which 2,305 people did what you wanted them to do, your the conversion rate for that month would be 13.18%. As you can see, calculating the conversion rate is not difficult, but in practice, it will be even easier to calculate this index, because most online advertising services (such as AdWords) and site analytics platforms (such as Google Analytics) with the right settings automatically They calculate the conversion rate for you and show it in their user interface. 

One of the advantages of the conversion rate is its flexibility, which means that you can limit or expand the scope of your action as much as you want. Here are some examples of different types of conversion rates:

•  Overall conversion rate (What is the overall performance of your website in converting traffic from different sources?);

•  conversion rate marketing channel (the AdWords Traffic Conversion How does traffic from this through greater conversion rate is?);

•  Site page conversion rate (which tab of the website performs better in converting incoming traffic?);

•  Conversion rate Campaign (the Campaign was implemented in transforming how users?);

•  Ad conversion rate (How did the ad perform in converting users? Do you need to change the text? Does this ad get the right customers to your website?);

•  Keyword conversion rate (How do keywords perform in conversion? Which keyword is more valuable for investment?);

The list above is just a handful of examples. Conversion rate is one of the best indicators to evaluate the performance of various dimensions of internet marketing. However, you should keep in mind that while it is a good idea for people to come to your website or click on them, they will not make much money if those referrals and clicks do not end up being something that is beneficial to your business. As a result, you need to look for the necessary injuries and adjustments.

Learn more:  How to Measure Targeted & Quality Traffic of Your Website

Is duplicate conversion also calculated at the conversion rate?

You may be wondering, "But what if a person changes many times?" How do these conversions affect my conversion rate? "Should I count them as one conversion or several conversions?"

These are all important and influential questions. Basically, marketers use a different term to describe each situation in order to solve the problem of sum of conversions and duplicate conversions.

As mentioned above, the conversion rate is equal to the number of conversions divided by the number of visitors. To see the percentage of converted visitors (regardless of the number of conversions of each of them), divide the converted visitors by the total number of visitors and multiply the result by 100 and express it as a percentage. This index is commonly known as the "click-through rate".

Click conversion rate = (converted visitors ÷ total visitors) × 100

For many businesses, the conversion rate is equal to the click-through rate; So in this article we will focus on the conversion rate. However, click-through rate can also be a useful indicator in situations where you have multiple duplicate conversions and want to know what percentage of your visitors are converting.

In calculating the conversion rate, pay attention to the volume and quality of information.

An important point to consider when calculating the conversion rate is the quality and scope of the information you have. For example, statistics may show a 100% conversion rate for your website, but what if your website has only one visitor and the same person?

In general, if your statistical population is small, you cannot rely on the results obtained. For example, imagine that if 5% of the 20 people on your website were converted and one of them did the job you wanted to do (which is not unlikely), can you say that you performed well? Probably not, since your conversion was random.

On the other hand, if 5% of 10,000 people convert and 5 of them are randomly converted, your conversion rate drops from 5% to 4.95%; But this information is relatively reliable. 

Because each traffic source naturally has a percentage of error (random conversions, people who tried to convert but did not convert for any reason, certain time intervals with high or low conversion rates, and the like) the only way to get a statistic Reliable conversion rate is a relatively long time to calculate.

Of course, it is not possible to have a complicated version and a specific time frame for all businesses. Many marketers use one-month time intervals, but if you have a large website like TargetedWebtraffic.com, one day's information will probably be enough to get a reliable statistic.