Conversion rate is a metric used in both marketing a sales to measure the percentage of users who complete a desired action (ie subscribe to a newsletter or make a purchase)
What is conversion rate?
Conversion rate refers to the percentage of contacts, users, or site visitors who complete a desired action, such as making a purchase or filling out a contact form. It is a crucial metric for measuring the effectiveness of an online business' operations and its website efficacy in both marketing and sales.
The higher the conversion rate, the more successful a website is in persuading visitors to take a desired action. A low conversion rate may indicate issues with website design, messaging, or user experience.
3 examples of commonly-tracked conversion rates:
On an ecommerce site: the percentage of visitors who make a purchase. For example, if a website has 10,000 visitors in a month and 500 of them make a purchase, the conversion rate is 5%.
In marketing emails: the percentage of email recipients who click on a link or take a desired action after opening an email. For instance, if an email campaign is sent to 1,000 subscribers and 100 of them click on a link in the email, the conversion rate is 10%.
On landing pages: the percentage of visitors to a landing page who complete a desired action, such as filling out a form or clicking a button. For example, if a landing page has 1,000 visitors and 200 of them fill out a form, the conversion rate is 20%.
Improving your conversion rates:
With constantly changing trends, increased customer expectations, and ever-growing availability of online stores and products, even the most successful ecommerce brands needs to continuously track conversion and optimize their sites. A/B testing is a great way to experiment and provide analytics that take the guess work out of making changes to your site and help with both personalization and overall digital experience optimization.
