What is Conversion Rate?
Conversion rate is the percentage of site visitors who take a specific action, such as signing up for a newsletter, purchasing a product or service, or making a donation.
For example, if you have 100 visitors to your website and 50 of those people complete your Contact Us form, you have a conversion rate of 50%.
The power of a high conversion rate is that it works as an indicator of how effective your marketing is. If you have a low conversion rate, it means that when people visit your site, they do not take the action you want them to take.
How to Calculate Conversion Rate?
You can use this formula to calculate the conversion rate:
Conversion Rate = Total conversions / Total visits to your website
Note that conversion rates are always figured out as a percentage.
For instance, if you have a 4% conversion rate and make $100 from 1000 orders, then you’ve made $4 profit per order or $0.04 profit per visitor.
What is a Conversion Rate Calculator?
A conversion rate calculator lets you calculate the percentage of website visitors who actually make a purchase, leads, or other desired action.
You can use it to figure out what percentage of your traffic is purchasing products, filling out lead forms, or any other metric that you want to determine.
Using a conversion rate calculator is important because it shows you how effective your efforts are.
For example, if 5% of visitors sign up for an account and complete the process, you have a 5% conversion rate for signing up for an account.
This means that 95% of people did not complete the process and thus did not sign up for the account.
Why is Conversion Rate Important?
Conversion rates are typically calculated as a percentage, where the number of visitors to a website is divided by the number who purchase.
The conversion rate is an important metric for both eCommerce businesses and those simply running an ad campaign because it helps determine the effectiveness of the business or advertising campaign, which can lead to higher profits.
For example, if you’re spending money on marketing and the conversion rate hasn’t gone up, then you may want to rethink those efforts.
Or if traffic has gone down, but conversions haven’t, then that might be an indication of something else going on with your site.
A conversion rate calculator can also help you get a better idea of how many people you need to reach to get your desired number of conversions.
Benefits of Using a Conversion Rate Calculator
A major reason why many eCommerce websites fail to meet their sales and profit potential is that they do not have an accurate and consistent way of measuring their conversion rates.
A conversion rate calculator is a tool that helps you calculate the number of visitors you get, how many of those visitors make a purchase, and how much money each visitor spends.
It will help you track your website’s performance over time, allowing you to make adjustments when necessary. With better tracking comes better sales!
For example, if you have an online ad campaign, the conversion rate calculator will show how many people clicked on your ad and how many people decided to purchase after being exposed to your ad.
If most people who click on your ad do not make a purchase, then it is likely that the ad should be adjusted or taken down altogether.
This gives you the power to adjust your marketing efforts as needed to meet specific sales goals.
How to Improve your Conversion Rate
Trying to boost your conversion rate is a smart move because it will increase your business revenue and profits.
Here are some tips to help you gauge your conversion rate and increase it over time:
1/ Have a Clear Goal
Before you even begin optimizing your site, you need to be clear on what your goal is. You might want to attract more traffic or acquire more email subscribers. Whatever the goal, make sure it aligns with the rest of your business goals.
2/ Convert First Time Visitors
It can be frustrating when a ton of traffic hits your website, but only a few visitors end up buying from you.
The good news is that you can do multiple things to increase this conversion rate, mainly by making your website easier to navigate and less overwhelming for new customers.
3/ Reduce Shopping Cart Abandonment
There are several reasons why customers don’t finish checking out on your website, and many of them can be traced back to issues with the checkout process itself.
The best way to increase conversions is to identify problem areas within your checkout flow and implement solutions for them (such as offering customers an option for faster delivery).
4/ Explain Properly
One very effective way to increase conversion rates is to provide more information about your product on your website’s home page.
This might include additional pictures, product reviews, or even a video or audio demonstration so that the visitor knows exactly what they are getting.
5/ Test Different Colors
You can also increase the conversion rate by testing the colors on your website.
For example, some colors evoke feelings of goodwill while others evoke feelings of disgust. If you are selling food products, using colors such as pink, yellow and blue may help drive sales.
However, if you are selling business services or software, using colors such as red and black may help drive sales.
6/ Test Different CTAs
A final way to maximize the conversion rate on your website is to test different calls-to-action (CTA) buttons on your website.
According to a study by MarketingSherpa, landing page conversion rates of visitors who saw the call to action “Download Now” were 39% higher than those who saw the CTA “Register.”
So test which version of your CTA works best for your audience! Your goal with these buttons should be to try and get the highest conversions possible.
What is a marketing conversion rate?
Conversion Rate is a marketing term used to describe how many people take the desired action on a website, like buying a product, signing up for an email newsletter, or filling out a contact form.
How do you calculate the conversion rate in marketing?
You can calculate conversion rate in marketing using this formula:
Conversion Rate = Total Conversions / Total Visits
For example, if you have 500 visitors to your website and 10 of them sign up for your newsletter, your conversion rate would be 2%. If you have 1,000 visitors and 100 of them sign up for your newsletter, your conversion rate would be 10%.
How do you calculate the conversion ratio?
The conversion ratio is calculated by dividing the total number of conversions by the total number of visitors. If you get 5,000 visitors to your site and 500 make a purchase, your conversion ratio is 10% (5000/50).
What is the formula for conversion?
Conversion Rate = Total Conversions / Total Visits
What is a good conversion rate for digital marketing?
A good conversion rate for digital marketing is between 2% and 5%. If your conversion rate is lower than 2%, you may have problems with your site’s design or content. If it is higher than 5%, even then, you can try some CRO strategies to increase your conversion rates further.