Want to calculate your conversion rates? Use the calculator below:
What does conversion rate mean?
Conversion rates are a metric businesses monitor to calculate how a desired action has converted. Actions which are commonly monitored are visitor to subscriber conversion rate, and lead conversion rate.
Visitor to subscriber conversion rate monitors how many visitors become subscribers. For example if you have 100 visitors to your website each day, and out of them 100 visitors 5 sign up to your newsletter, you have a conversion rate of 5%.
Lead conversion rate monitors how many of your leads are converted into paying customers. For example if you have 10 leads, and one of them makes a purchase, you have a conversion rate of 10%.
Conversion rates can be used to track any desired action you want to monitor to make sure your marketing tactics are running efficiently, and your sales funnel and website are fully optimized for maximum results.
Why are conversion rates important?
For businesses to grow and expand, they need to monitor how their current efforts are performing, and where needed make changes.
For example, monitoring the sales conversion rate on your product’s landing page means you can assess whether or not you need to make an improvement. A low conversion rate could be due to overcomplicated copy or a confusing layout with many distractions. By understanding and monitoring your conversion rates, you can track if any changes you make improves how your desired action converts.
How to calculate conversion rates
To calculate a conversion rate, firstly select your desired action and divide it by the total time the desired actions could have happened, lastly multiply by 100 to get a percentage.
For example, if 1,000 people saw the pop-up to get your lead magnet and 123 signed up. We would take 123 and divide it by 1,000, and finally multiply it by 100 to get our percentage – 12.3%.
(123 / 1,000) x 100 = 12.3% conversion rate
(Conversions / total clicks or visitors) x 100 = % conversion rate
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