how to calculate conversion rate

What Is Conversion Rate and How Is It Calculated?

What Is Conversion Rate and How Is It Calculated?

Conversion Rate The percentage of user actions taken following the total number of clicks on a display ad or other digital asset. Your marketing plan describes your actions, which typically involve clicking on a second link, downloading an asset such as a B2B (business-to-business) white paper, or signing up for special retail deals.

The formula is: clicks / actions = conversion rate.

Your web marketing effort will be more successful if your conversion rate is higher. The conversion rate is important. Mailchimp has the tools and resources to help your business acquire, engage, and keep the appropriate consumers. Tracking your marketing campaign conversions can help you adjust your marketing tactics, enhance the efficacy of your content marketing, or better identify the behaviour of cart abandoners from a Facebook advertising campaign if you want to develop your business with digital marketing. You may also convert more of your website traffic into clients by using web analytics and conversion tracking tools like Google Analytics.

What exactly is a conversion rate?

Conversions are the actions taken by a user in response to a call to action in the marketing sector. That may suggest that, because each conversion puts a person one step closer to becoming a customer, you want as many as possible from your marketing efforts and public-facing content. The higher your site’s conversion rate, the more conversions it has. Conversion rate is the percentage of users who converted out of the total number of visitors to your site. The better your content, the higher your conversion rate.

Why Should You Be Concerned With Conversion Rates?

Excellent question! As previously said, looking at metrics such as social media post likes, number of followers, and link clicks is a nice place to start, but it doesn’t tell the whole storey.

Consider the following extreme case. Assume you have a page on your website that ranks first in Google—the most sought position. This should be a big victory for you. You got 300 SERP clicks… but no one who lands on your website hits the free trial button to test your product. What’s going on? We can’t be certain based just on this information. However, it’s possible that the page simply isn’t appealing enough to get individuals to join up. We’d have to do more to motivate them. What will people receive if they sign up? This should be emphasised more.



Again, this is an extreme example, but the point is this: The top-ranking position and 300 clicks are largely pointless if not a single one ultimately converts to a sign-up, which is necessary if this brand wants to grow. Knowing your conversion rate(s) also tells you where you’re excelling and what you need to improve—especially when you combine it with other metrics. (Keep reading. We’ll get to that in a moment.) Importantly, it can help you to lower the cost of acquiring new customers and also get the customers you have to spend more, essentially increasing the value of each customer.

What is a Good Conversion Rate?

To determine whether your conversion rates are on track, you must first determine what they should be.

So, what constitutes a decent conversion rate? To offer you a ballpark figure, 10% is a good starting point. To be clear, the conversion rate you seek will be determined by a variety of factors, including: “Looking at these numerous criteria will help you better identify what an average conversion rate should look like, based on your demands and goals.”

Testing Your Website

So, how do you go about recovering all of those lost conversions? It is not as difficult as you may believe. Here are a few methods to get started with CRO right away:

1. Make a Specific Landing Page If you use paid advertising (Google Ads, Bing Ads, etc.), you should direct traffic to a specific landing page. There are numerous reasons to do so, but the most important is page optimization. If you’re going to pay for traffic to your site, you should direct them to a sales page. Landing pages are also the simplest form of page to optimise for CRO. So, if you’re still directing visitors to your homepage, this is where I’d begin. Check out our blog post for additional information on landing page building and testing tools.

2. Construct a Hypothesis Every excellent CRO test begins with a hypothesis. However, in order to put your hypothesis together, you’ll need to make educated estimates about which site components have the greatest impact on your conversion rate and profitability. Here are a few areas to start with: Once you have a hypothesis and two page designs to evaluate, all you have to do is run your test!

3. A/B testing The A/B test is the simplest method to get started with CRO. If you have a lot of traffic, you can conduct some very creative (and complex) multivariate testing, but for most businesses, A/B testing is the simplest and most effective option. To run an A/B test, just create two alternative variants of a page and divide your traffic between them. Half of your traffic is sent to variant A, while the other half is directed to variant B. To separate your traffic, you’ll need the assistance of CRO software. There are some wonderful, albeit pricey, ways to perform an A/B test if you’re serious about CRO. However, if you’re just getting started, here are some suggestions.

 Testing Your Traffic

In addition to testing your website, testing your visitors is an excellent strategy to boost your conversion rate. Obviously, if the majority of your traffic originates from organic Google search results, this isn’t an option, but if you’re running a pay-per-click campaign, you have a lot of control over who visits your site or landing page and why.

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