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Calculate Converion Rate: A Comprehenisve Tutorial In 2024

Hey! Do you want to know how to calculate the conversion rate? Are you getting a conversion but do not know if the conversion rate is good or not? Have you heard about improving your conversion rates but wondered how to know if the conversion rate is good, and how to improve the conversion rate?

As a Marketer, it is important to keep track of your conversion rate, so whatever you want to know related to the conversion, I got you, and I will give you your answers. 

Conversion rate is the main factor in business which means the moment in which visitors perform a certain action. The higher the number of conversions, the more you will get profit and achieve your goal. 

When a visitor visits your website and performs certain actions, he becomes a part of your customer relationship management, which makes it easier for you to target them via different marketing tactics. Because when he performs certain actions, he will be closer to conversion with each step.  

Moreover, the conversion rate also helps to predict customer behaviors that can help you to discover loose ends. Conversion rate also helps to track the performance so you can take the right step and get loyal customers that increase your sales, aka conversion rates. 

In this article I will talk about average and good conversion rates, how to calculate conversion rates, how can you improve your conversion rates, and many more. So, without further ado, let’s start and stick with me till the end. 

What Is A Conversion Rate?

A conversion rate is defined as 

“when the percentage of visitors or users who completed a certain task or action like buying products, subscribing, downloading files, etc.” 

It can also be defined as 

“It is a measurement that determines how much your marketing campaign is successful or how many your visitors are converting into customers or taking a desired action compared to the total number of website visitors.” 

The conversion rate is calculated in percentage. Its rates vary from page to page and from product to product. 

Every business wants to get a good conversion rate. The purpose of calculating a conversion rate is to increase the conversions. 

Let’s say, you are selling electronics products and start email marketing, You attract more than 1000 people who land on your website, and only 100 of them add the product to their wishlist and decide to buy it, your conversion rate is 10%. 

Why are Conversion Rates Important?

To determine your marketing success, conversion rate matters. You have to track the performance, and how much you are getting responses after putting in your marketing efforts. 

Conversion rate helps to compare the number of responses, out of the total number of contacts. So it is a useful matrix in online business that helps to track marketing performance. It also determines the success of the campaign. 

If you are starting your business from scratch, then the 1% conversion rate is a good start. 

If you run a website and start email marketing, and at the end of the month, few people sign up for your mailing list. Although 1k visitors come to your website, only 100 of them decide to join your mailing list, which means you have to improve marketing tactics that compel the audience to sign up for your mailing list. 

For this, incorporate segmentation which means dividing the audience based on their interests and other demographic factors. 

Conversion rates provide data that helps to create better marketing campaigns to convert the target audience into loyal customers. 

Conversion Rate Formula: 

There are different conversion rates according to various marketing campaigns. So to calculate your conversion rate, first clear out your marketing purpose, like what you want from people.

Conversion rate= (Total conversion / Total Visitors) × 100

So keep a record of your conversion rate. If you are calculating conversion rate every month, then keep a record of the previous one that will help you to know your marketing performance. 

Marketers calculate different conversions according to their goals, like 

  1. Website Conversion 
  2. Subscriber conversion rate 
  3. Lead generation conversion rate 
  4. Lead conversion 
  5. Sales Conversion 
  6. Email Conversion 
  7. Ad conversion   

How To Know If The Conversion Rate Is Good?

Good conversion rates depend on different factors like 

  • Industries
  • The product and services you are selling 
  • Your target audience 

You can understand the good conversion rate that helps you to achieve your business goals called a good conversion rate.  

How To Calculate A Good Conversion Rate?

Calculating a Conversion rate is a piece of cake, as it is the number of conversions divided by the total number of ad interactions. 

Like: if you have 100 conversions out of 1000 people interactions, then your conversion rate is 10%. i.e, 100÷1000 =10%.

However, the calculation of the conversion rate depends on your goals and what you are looking for. If you want to calculate the conversion rate of your website, then the above procedure is perfect.

But if you set multiple goals, then you have to track and capture the conversion rate individually as well as on the whole. 

Use Tools:

For this, use tools that are offered by different websites to calculate conversion rates. You can also use Google Analytics to calculate conversion rates. 

Let’s repeat the previous example and say that you are selling electronic products and you have multiple goals like increasing the subscription, boosting the sales, etc then you need to calculate; 

  • Total conversion: It means how many visitors perform certain actions. 
  • Subscriber Conversion: It means how many people convert into new subscribers. 
  • Shopper conversions: means the percentage of people who become new customers. 
  • If your goals are multiple, then you have to focus on different goals to increase the conversion rate. 

For this, use Google Analytics which tells the number of visitors and tracks how they reach your website. 

So a good conversion rate means how many people bought your product or performed certain actions compared to the number of people who visited your website. 

But if we talk about the good conversion rate, then it is 2 to 5 percent. But if we talk about the famous, well-known, and top brands that have a high reputation with loyal customers, then their conversion rate is more than 5%.

In short, if you are running a store and selling products, then your conversion rate means how many people are buying your products out of people who are visiting your website.

When people visit the content website, then it depends on the number of visitors that take any conversion action like a subscription to the newsletters, downloads now, signs up, etc. So overall content website conversion rates are higher than the e-commerce website.  

 If you wonder how to know if the conversion rate is good or not, then let’s talk about this.

The Average Conversion Rate Of The Websites: 

The average conversion rate depends on multiple factors like niche or type of the industry, type of the website, and goals of the website, etc. so conversion rates have different definitions according to business criteria. 

Mostly the average conversion rate is between 1-3 percent only. The conversion rate might be low according to your expectations because most people who visit the website do not have the intention of buying it immediately, and it is considered normal. 

So if we understand this with an example, you have 10,000 website visitors daily, and 5000 of them perform certain actions like subscription, download, signup, or buying, then the conversion rate will be 5000÷10,000= 0.5 percent. So the conversion rate will be 0.5%

1. E-Commerce Website Conversion Rates:

According to industry experts, average e-commerce website conversion rates are between 2.5% to 3%. Shopify has an average 1.4% conversion rate.

If you are getting 2.5%, then it is a good start, and if you are below 0.5%, then you need to improve your marketing. And if your rates are greater than 3%, then your websites have excellent performance. 

2. Lead Generation Website: 

For lead generation websites, the conversion rates are 10-15% which could be considered much higher. 

3. Content Website: 

While a content website has a large number of visitors or traffic, its conversion rate is usually 1%. But if these websites run an affiliate program or run ads, then these websites can generate a bulk amount of revenue. 

4. Email Marketing Conversion Rate: 

Like websites that have different conversion rates depending on different factors, email marketing conversion rate also varies. If we talk about specific industries like e-commerce, then the average conversion rate of e-commerce email marketing is 8.17%. 

The Conversion Rate Of Facebook And Google Ads: 

The ads conversion rate also varies depending on the e-commerce niche average conversion rates are 

Fitness industry 14.29% 

Technology industry 2.31% 

Conversion Rates On Google: 

Similarly, Different industries have different conversion rates on Google like 

Animals and Pets And Physicians and surgeons have more than a 15% conversion rate. 

Fashion and jewelry, furniture, and real estate have less than a 4% conversion rate. 

Conversion Rates According To Different Industries

Let’s find a good conversion rate for different industries and fields. To get a good conversion rate, you have to understand your customers and find the way to serve them best. For this, you have to keep track of conversion rates. 

There is no exact number that predicts a good conversion rate. Different industries have different conversion rates like 

Botton 

Middle 

Top 

B2B 2.23% 4.31% 11.70%
E-commerce  1.84% 3.71% 6.25%
Legal  1.07% 4.12% 6.46%
Finance  5.01% 11.19% 24.48%

As you can see, the conversion rates are very low compared to finance. After legal B2B business has high conversion rates. Although the e-commerce business has the lowest conversion rates, it attracts more customers as compared to the legal field. So you can make more money than the legal industry.

But in the e-commerce conversion rate, there is also a seasonal variation like on Black Friday or other special events the conversion rate is high. Or there is a steep decline in conversion rate in the late summer season when customers do not think about online shopping. 

So if you are related to the above-mentioned fields, then you can consider which place your conversion rates are lying. 

a. Conversion Rates According To The E-commerce Products:

Similarly, if you are related to an e-commerce business, then the conversion rate depends on the product you are selling. 

Like if you are selling electronics, then your conversion rate is 1.4% 

Other products like 

E-Commerce Industry 

Conversion Rates 

DIY and tools 1.7%
Home Decor 2.3%
Garments and footwear  4.2%
Major chains 2.3
Sports  3.1%
Gifts 4.9%
Others  3.4%

Now you can see that conversion rates are different for different products in the e-commerce industry. From the conversion rate, stores that sell home decor have low conversion rates as compared to gift stores. 

b. Conversion Rates According To Traffic Source:

Another way of calculating the good conversion rate is finding the source of the traffic which means where visitors or traffic is mainly coming from. 

Based on the traffic source conversion rates vary because some pages have a high conversion rate as compared to others. So it depends on the source of the traffic who is visiting that site. Let’s understand it with an example. 

Imagine you are running an online store that sells apparel. You perform marketing via different channels like using online social media platforms, email marketing, etc. and people land on your website through specific ways like Facebook or Instagram ads. Or through email, others might land on your website by browsing the internet. 

Similarly, people who come to your website through Facebook ads might be interested in buying your products as compared to the visitors who randomly stumbled upon your website. 

So for this, people who come through ads or email have a high rate of conversions because they come to your website. After all, they are interested in your product. Even if they don’t buy right away, they might perform other things like adding to the shopping cart or wish list.

So let’s find out the conversion rates of various traffic sources. 

Traffic Source 

Conversion Rates 

Display  0.7%
Social Media Platforms like Facebook  2.1%
Direct  2.2%
Email  2.3%
Referral  2.6%
Organic  2.8%
Paid  2.9%

As you can see the conversion rates of paid traffic are higher compared to the other traffic sources so if you can afford it, then run ads that can assist in reaching out to target customers more easily. And many successful business owners run ads. 

c. Conversion Rates According To Device:

Similarly, devices also show a great impact on conversion rates. Usually, people use mobile phones for searching and buying products, but different devices have different conversion rates like 

  • Mobile  1.832
  • Tablet 3.49%
  • Desktop 3.90% 

It is a fact that desktop users convert more as compared to mobile phone users. Because mobile phone users become distracted by different factors. 

How To Improve Conversion Rates?

1. A/B Testing: 

Usually, businesses use A/B testing to compare different options to figure out what works best for their business. Test different elements of sales or landing pages. 

This includes 

  • Headline 
  • CTA 
  • Images and Videos of the product 
  • Product copy etc

2. Add The Testimonials And Reviews Of The Customers: 

Display your customers’ reviews and Add the social proof. Authentic and positive reviews help to build a trusting relationship with potential customers and also help to highlight the quality and value of your products and services. 

3. Remove Distractions: 

Minimize the distractions and remove elements on the page that you consider will divert the attention of the user. Minimize unnecessary product or CTA buttons that could divert visitors from a particular goal.

Make sure your pages do not ask for too much information only include essential information, and are easy to navigate. 

4. Test Different Incentives And Offers: 

The business offers different offers and incentives to attract consumers or new consumers. But it doesn’t mean that all offers give you a high conversion rate. You have to test it for your business and check out which gives you positive results. 

The main goal of offering incentives is to attract the bulk of the audience. Like if you are offering a free course in the form of a blog post on the website but it does not get a high conversion rate (2%), then offer a video course that might get a high conversion rate. So, try out A/B testing of different incentives.

5. Make A Clear Offer:

The main reason for low conversion rates is usually confusing offers. So make your offers crystal clear so they don’t bounce back from the page. If you want people to download or sign up for your online course, then write

Get your free ebook instead of Download 

Similarly other offers 

For buying products, write 

Add to the cart and save 20% instead of Buy Now    

6. CTA Buttons:

As you know, CTA buttons are an integral element in increasing the conversion rate. So create click-worthy buttons to improve the conversion rates.

If you know how to add and style buttons that compel the audience to take a particular action, then you can increase the chances of conversions. 

7. Headline: 

As a copywriter, headlines have a strong effect on consumers, so create powerful headlines. Choose the appropriate text, size of the heading, and design of the heading. 

8. Ad Display: 

As I discussed before, paid ads have good conversion rates, so if you use paid ads, then choose the appropriate ad display. Because some ads work better in mobile dives and some on desktop.

Like popup ads that appear suddenly on the screen or other ads that appear within the content of the page called in-line ads. For this, again test what kinds of ads work better.

9. Remarketing:

The trust relationship is the foremost factor for high conversion rates. Many visitors do not buy products or services on their first visit.

Research says, most seventh attempts convert visitors into customers. In this tactic, you need to market our services and products in front of old users who showed interest in your offers in the past. 

And 43 % chance as these users convert. 

10. Invest In Heatmap Tools: 

Heatmap tools help to track the customer’s interaction on the website. These tools help to visualize the hot and cold areas of the website, like which page or area of the page visitor is spending more time. It will help you to improve the audience experience so they can convert happily.

11. Keep In Mind Cart Abandonment: 

Cart Abandonment means when visitors come to your online store select a product and add it to the card or bag they leave the website without buying the product.

It is a problem that happens in e-commerce stores and the average card rate is approximately 80%. To increase the conversion rate, you have to minimize the cart abandonment rate.

So figure out why visitors are not finalizing the deal. A variety of reasons compel them to abandon the cart, the major reasons are 

  • Creating account 
  • Website crashes or gives errors frequently that make it unreliable 
  • Limited payment options
  • Complex process 
  • The total cost is not clear 
  • Delivery problems and poor return policy etc. 

Bottom Line:

You can never achieve a 100% conversion rate, not even 50%. So be realistic and keep your expectations low. It doesn’t mean that you can not achieve it, it means no one can achieve it and it is impossible. 

Some industries like equipment industries have low-performing websites while electronics or business services websites have higher conversion rates. So before you calculate the conversion rate, do some research and find in which category you fall. 

Find the companies that you admire visit their pages search their lead magnets and take inspiration from them, then apply those to your business and test them to find out which works best for your business. 

I hope you find this article helpful and that it has helped you how to calculate the conversion rate of your website. 

Frequently Asked Questions (FAQs):

What Is A Good Website Conversion Rate?

Usually, a good conversion rate is between 2 percent to 5 percent. Even if you get a 0.5 percent conversion rate it is still considered pretty good. Because small improvements make a clear difference. 

What Is Considered A Good Conversion Rate?

Usually, the good conversion rate of different industries is between 2 percent to 5 percent. But these rates vary in different industries within 2 to 5. 

Is A High Conversion Rate Or A Low Conversion Rate Good?

A high conversion rate is good and is considered that a lot of users are performing specific actions like buying your product compared to the users who visit your website.

A high conversion rate indicates your successful marketing tactics. While a low conversion rate is not good, because very few people will buy your product or perform other actions like downloading or signing up compared to the number of visitors 

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