Conversion rate

What is a conversion rate?

The conversion rate is the number of conversions divided by the total number of visitors. For example, if an ecommerce site receives 200 visitors in a month and has 50 sales, the conversion rate would be 50 divided by 200, or 25%.

A conversion can refer to any desired action that you want the user to take. This can include anything from a click on a button to making a purchase and becoming a customer. Websites and apps often have multiple conversion goals, and each will have its own conversion rate.

Why your conversion rate is important

Tracking conversion rates allows you to measure the performance of your web pages and apps. Understanding what percentage of your users are completing the goals that drive your business allows you to gauge the success of your site or app and identify areas for improvement.

Improving your conversion rate also allows you to get more sales with the same amount of traffic. If you are spending $1,000 a month on advertising to drive 500 visitors to your site, if you double your conversion rate you essentially double the value of your ad spend. You can then cut back on your ad spend and get the same benefit as you were getting before, or invest the additional revenue into new ad programs.

How to improve your conversion rate

The process of identifying conversion goals, calculating their conversion rates, and optimizing your site or app to improve conversion rates is known as conversion rate optimization or CRO. CRO is done by formulating hypotheses for why visitors aren’t converting and coming up with ideas for improving conversions, then testing those ideas through a process called A/B testing, in which two versions of a page are tested against each other to see which one performs better.

By continually identifying new conversion goals, identifying areas where your conversion rate can be improved, and implementing tests of new features, you can continuously improve the performance of your website or app.