Calculate conversion
Calculating conversion is an important part of online marketing and helps companies measure the success of campaigns and Web sites. Conversion refers to the number of visitors who perform a desired action, such as making a purchase, signing up for a newsletter or filling out a contact form. The conversion rate reflects this percentage and provides insight into how effective a marketing strategy is.
Formula for conversion calculation
The standard formula to calculate the conversion rate is:
Conversion rate (%) = (Number of conversions / Number of visitors) × 100
Example conversion calculation
Suppose an e-commerce Web site received 10,000 visitors in one month. Of these visitors, 500 made a purchase. The conversion rate then becomes:
Conversion rate = (500 / 10,000) × 100 = 5%
This means that 5% of visitors made a purchase.
Why is calculating conversion rate important?
Calculating conversion rate is important to assess how well a Web site or marketing campaign is performing. A high conversion ratio is often a result of a well-functioning strategy. This while a low ratio indicates areas for improvement such as usability, website speed or the quality of call-to-actions. By having this clear, you can start optimizing the funnel. With this, marketing goals can be achieved faster.
