Conversion Rate
Definition:
Conversion rate refers to the percentage of website visitors or potential customers who take a desired action, such as making a purchase, filling out a form, or subscribing to a service, out of the total number of visitors or potential customers.
Conversion rate is the ratio of desired actions taken by visitors to a website or potential customers compared to the total number of visitors or potential customers, expressed as a percentage.
How-to guide:
- Define the desired action: Determine the specific action you want visitors or potential customers to take on your website, such as making a purchase, signing up for a newsletter, or requesting a quote.
- Track visitor behavior: Use analytics tools to monitor the number of visitors or potential customers who visit your website and the number of people who complete the desired action.
- Calculate the conversion rate: Divide the number of people who completed the desired action by the total number of visitors or potential customers and multiply by 100 to get the conversion rate percentage.
Real-world example:
If an e-commerce website receives 1,000 visitors in a month and 100 of them make a purchase, the conversion rate would be 10% (100 purchases / 1,000 visitors * 100).
Conversion Rate = (Number of Desired Actions / Total Number of Visitors or Potential Customers) * 100
|
Visitors
|
Desired Actions
|
Conversion Rate
|
|
1,000
|
100
|
10%
|
|
2,500
|
150
|
6%
|
|
500
|
50
|
10%
|
Conclusion:
In summary, conversion rate measures the effectiveness of a website or marketing campaign by determining the percentage of visitors or potential customers who complete a desired action. It helps businesses evaluate their marketing efforts and optimize their strategies to improve conversions and achieve their goals.