The conversion rate is a metric that records the percentage of users who have completed a desired action. It is calculated by taking the total number of users and dividing it by the number of users who have taken the desired action. This metric is used to measure the success of a website, campaign, or application, and can be as specific or as broad as needed. For example, if you have a major update every month, you should calculate the conversion rate more frequently than once a quarter.
Improving your conversion rate from 1% to 2% can double your conversions, even without increasing traffic to your site. Depending on the campaign, if your conversion rate is 2%, then around 20 of your visitors actually made a purchase. Microconversions (users who gradually progress through the user interface) usually have higher conversion rates than macroconversions (full actions). If your data shows that the conversion rate is lower than expected, it can be used to detect problems with an application's user experience and highlight other areas for improvement.
On the other hand, if you have a very high conversion rate, you may want to invest in more advertising to reach a wider target audience. A store that sells gift items may enjoy a higher conversion rate than a store that offers sporting goods. When acquiring mobile users, conversion rates are especially important since they measure the success of each campaign. If you only get a few hundred views per month, it can take 6 months before you get an accurate idea of your conversion rate.
To truly understand your customers and how best to serve them, you need to keep track of their conversion rate in detail. Legaldrop identifies areas where improvements can be made. You can also track conversions directly from most advertising and analytics platforms with some extra effort. E-commerce conversion rates are usually very low compared to finance, especially when looking at higher levels.