Conversion Rate

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What is a 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.

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What is the conversion rate? arrow icon in accordion
Conversion rate is an important tool to measure the efficiency of your ad campaigns, landing pages and other online marketing activities. It is the percentage of all visitors who performed an intended action divided by the number of all visitors. For example, it can be the number of sales that resulted from a fundraising campaign.
Why is the conversion rate important? arrow icon in accordion
Conversion rate is important because it provides a simple measure of the effectiveness of your online marketing campaigns. It's an immediate indicator that tells you how well your ads, landing pages, and other actions are being received. It gives you the opportunity to see how your campaigns are performing and act on it to improve performance.
How is the conversion rate measured? arrow icon in accordion
Conversion rate is most often measured by a simple ratio between the number of visitors and the number of intended actions. These measurements can be done through different channels, such as ads, emails, landing pages or websites.
Can I improve my conversion rate? arrow icon in accordion
Yes, you can try to improve your conversion rate by optimizing your website to get more visitors and motivate more customers to complete the intended actions. You can also customize your landing pages to convert more visitors, such as running ads, doing email marketing, and testing different page layouts.
What is the conversion rate formula? arrow icon in accordion
The conversion rate formula is: conversions / visitors x 100, where conversions means the number of successful actions, and visitors are the number of visitors who visited the website or page.
What factors influence the conversion rate? arrow icon in accordion
There are many factors that can influence the conversion rate, such as the quality of the landing page, the quality of the ad, the number of offers, the cost per click, the user-friendliness of the page, and more.
What tools are available to analyze the conversion rate? arrow icon in accordion
There are many tools for conversion rate analysis, such as conversion tracking tools, A/B testing tools, heat maps,click-through rate tools and more. These tools offer various features that allow you to monitor and analyze your conversion rate.
How do I interpret the conversion rate? arrow icon in accordion
Conversion rate interpretation depends on your goals and campaigns. For example, if you have a high conversion ratio, it means that your campaigns are effective and you are reaching the right customers. If you have a low conversion ratio, you should review and change your campaigns to get more sales.
What conversion rate is good? arrow icon in accordion
The answer to this question depends on your goals. Some businesses try to achieve a conversion rate of 2% or more, while others aim for a conversion rate of 5% or more. All businesses should have a realistic goal based on your current conversion rate and your goals.
Which KPIs are important besides the conversion rate? arrow icon in accordion
Besides conversion rate, there are other important KPIs you should monitor, such as click-through rate, bounce rate, cost per acquisition, return on investment, and many more. These KPIs will help you get a comprehensive picture of campaign performance.

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