Marketing, Sales
Conversion Rate
Conversion Rate measures the percentage of users who complete a desired action out of the total number of visitors. This metric is fundamental for evaluating the effectiveness of specific calls to action, such as signing up for a service, purchasing a product, or upgrading a subscription.
HOW TO MEASURE
Calculate the conversion rate by dividing the number of users who have completed the desired action by the total number of visitors or sessions during the same period, and then multiply by 100 to express it as a percentage.
HOW TO IMPROVE
Optimize User Experience: Ensure that the user journey is seamless and intuitive to reduce friction points.
A/B Testing: Regularly test different aspects of your website or app to determine what changes lead to higher conversion rates.
Targeted Marketing: Use targeted marketing strategies to attract quality traffic that is more likely to convert.
Clear Calls to Action: Make sure that calls to action are clear, compelling, and easy to find.
FORMULA
Conversion Rate = ( Number of Successful Conversions / Total Visitors ) × 100%
EXAMPLE
An e-commerce website receives 10,000 visitors in a month and makes 500 sales. The conversion rate would be: Conversion Rate=(500/10,000)×100%=5%. This means 5% of the website’s visitors made a purchase.
DEPARTMENT USAGE
Marketing: To measure the effectiveness of advertising and promotional strategies.
Sales: To assess how well leads are converting into customers.
Product: To evaluate how changes to the product or website impact user behavior and conversion.
Customer Success: To ensure that the customer journey aligns with successful outcomes.
View the collection of Metrics Workshops.