How to Calculate and Improve Your Conversion Rate

Calculating your conversion rate is a simple process: take the number of conversions and divide it by the total number of advertising interactions over the same period of time. For example, if you had 50 conversions out of 1,000 interactions, your conversion rate would be 5%, since 50 ÷ 1,000 %D 5%. It's also calculated by dividing the number of conversions by the total number of visitors. Table 3 below shows the impact of the conversion rate on the cost of customer acquisition and return on investment.

Therefore, sales conversion metrics are critical to evaluating the return on investment (ROI) of your marketing campaigns. Increasing your conversion rate can improve your results and help you better predict customer behavior. Unlike some business and marketing metrics, understanding conversion rates requires some self-definition. Others, such as those selling electronic products or business services, tend to have higher average conversion rates.

It can be a common conversion goal, such as submitting a lead form, something more secondary, or something more obscure. Find answers to these questions and chart your conversion goals and conversion rate goals. If you're using GA, dive into configuring and testing conversion goals to make sure everything is going well before relying on the metrics you see (if you've inherited the configuration) or going ahead with any measurement and improvement plans. Whether you're an experienced professional or just starting your e-business, understanding and optimizing the conversion rate is critical to the growth of your company.

The conversion rate measures the number of users who converted as a percentage of the total number of users who visited your site. Learn how the conversion rate is an important metric that requires definition, understanding, measurement and specific improvement plans.