You might be seeing the term “Conversion Rate” around a lot and you are unsure what it really means.
Simply put, conversion rate is the percentage of website visitors taking a desired action.
Now let’s dig deeper.
What are examples of desired actions?
This really depends on your website and business goals, some will be the same for a lot of websites while some are more relevant to you.
Examples of goals include but not limited to:
- Sales of products
- Membership registrations
- Newsletter subscriptions
- Software downloads
This is an example scenario for an e-commerce store selling clothes online:
- We have 1,000 visitors on the website this month
- Out of 1,000 visitors, 600 stay
- Out of 600, 100 go to the buy page
- Out of 100, 10 visitors end up buying
From that example we can learn that:
- Website visitors: 1,000
- Bounce rate: 40% (as in 40% of the 1,000 quit the website without interacting)
- Conversion rate: 1% (1 out of 100 buy or 10 out of 1,000)
Let’s see a handmade visual example:
Every business goal is to improve their conversion rates and in return get more people to their goals.
There are many factors that go into play of improving conversion rates which will be discussed in other posts.
Any questions, comments or feedback on this post? you may leave a comment below.