Conversion Rate

What is a conversion rate?

The conversion rate describes the number of conversions divided by the total number of visitors. For example, if a E-commerce-Page 1000 visitors in one month gets and 100 sales achieved, the Conversion Rate 100 divided by 1000 or 10%.

A conversion can refer to any desired action you want the user to perform. This can include anything from clicking a specific button to making a purchase and retaining a customer. Websites and apps in particular often have multiple conversion goals, and each has its own conversion rate.

Why your conversion rate is important

Tracking conversion rates allows you to measure the performance of your websites and apps. By understanding what percentage of your users are meeting the goals that drive your business, you can measure the success of your website or app and identify areas for improvement.

Improving your conversion rate will also allow you to achieve the same Traffic to generate more sales.

Let's say you spend €2,000 per month on advertising to bring 1000 visitors to your website. Now, if you double your conversion rate, you essentially double the value of your ad spend. You can then reduce your ad spend and get the same value as before, or invest the extra revenue in new promotions.

How to optimize your conversion rate (CRO)

The process of identifying conversion goals, calculating their conversion rates, and optimizing your website or application to improve click-through rates is called conversion rate optimization, or CRO. The so-called CRO is performed by identifying problems why visitors are not converting and developing ideas to improve conversions. Then, these ideas are tested through a process called A/B testing, where two versions of a page are tested against each other to see which performs better.

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