Conversion Rate

 

 

 

 

What is a Conversion Rate?

The Conversion Rate is a key metric for online marketers and ecommerce providers or online retailers.

Conversion Rate refers to the number of people who have taken a desired action, out of total visitors.

For an eCommerce provider or online retailer, for example, the most important Conversion Rate is the number of buyers out of total visitors. Online Travel Agents refer to this as the ‘Look To Book’ ratio.

However Conversion Rates are not just calculated for purchases.

For many websites, key objectives might include getting users to sign up for email alerts or newsletters, or to sign up as Twitter followers or Facebook friends. B2B sites may focus on getting prospects to download whitepapers or ask for a sales rep to contact them.

Several conversion rates might then be tracked, for example to look at email signup rates, whitepaper downloads, contact me requests and completed purchases.

Conversion rates may also be calculated not just on total site visitors, but also on visitors to a specific section of the site.

A lot of online merchants have shopping cart abandonment issues, so they may want to track purchase Conversion Rates for all site visitors, store browsers and checkout process initiators.

Conversion Rate

The Question:

How many of the people on my site did what I wanted them to do?

Approach:

Number of users who converted as a percentage of total users

Commentary:

Number of impressions & clicks/ traffic are strong enough metrics for brand advertisers. For direct marketers (sales) or database builders (signups), Conversion Rate is the critical metric.

The Formula:

Conversion Rate = Converters/ Website Users

 

 

Sales & Marketing

• Marketing Industry, Marketing Trade
• Sales Industry, Sales Trade
• The Sales Funnel

Marketing for Dummies Guides

• Marketing for Dummies
• Marketing Plan
• Marketing Strategy
• Positioning
• Differentiation
• Brand Equity
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• RFM – Recency Frequency Monetary
• Breakeven Response Rate
• Customer Profitability
• CLV – Customer Lifetime Value
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Measuring, Marketing, Metrics & KPIs

• KPI – The One Key Marketing Metric
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Online Marketing/ Digital Marketing

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