Understand conversion in just 5 minutes


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conversion

A conversion is when a visitor on your website takes an action that you want them to take. This could be anything from signing up to a newsletter, creating an account or making a purchase.

When you measure this action, you are calculating your conversion rate.

Why do you need to calculate your conversion rate?

Measuring your conversion rate can help you to quantify users’ behaviour and determine if your website is successful in selling your product. This number can also help you to identify problems within your website and implicate changes to optimise your overall conversion rate.

Your ideal conversion rate will depend on your business’ KPIs, however if you consider that your conversion rate is low for a particular channel, page or product, you can choose to optimise certain features or even add new ones.

Once you have made these changes, you can use conversion rate figures to measure the impact of your changes on your business’ performance.

How do you calculate your conversion rate?

To calculate conversion rate you need to divide your number of actions by the total number of visitors to your website. You then multiply this figure by 100.

Example:

(Number of sales ÷ Website visitors) x 100 = conversion rate

(20 ÷ 1000) x 100 = 2.0%

 

Calculating your conversion rate using ‘unique visitors’

Although the traditional way to calculate your conversion rate is to use total visitors, it can be interesting to use unique visitors due to the nature of the buying cycle.

Considering that the buying cycle consists of a user visiting your website to view your products, leaving to compare elsewhere and returning to buy the product, you will often have the same person counted more than once in your ‘total visitors’ number.

By using ‘unique visitors’ over a period of time you are able to achieve a more precise conversion rate.

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