The conversion rate is a crucial KPI not only for your PPC campaigns but also for your website and landing page performance. Here's all the information you need about this KPI, what it is, why it's important, how to calculate it, and way more!
TRACK YOUR CONVERSION RATE
What is a Conversion Rate
Theconversion rateis the proportion of people who did thedesired actionamong your totalnumber of visitorsover a specific time period or amount of time. This is a goodmetricfor lead generation, to calculate profitability and could be tracked on yourGoogle Ads, emails,landing pages (or homepage), eCommercesite, and anywhere else where you've set a business goal to either buy, start a trial, subscribe to something, or convert into a paying customer.
How to calculate conversion rate
You don't need aconversion ratecalculator! To calculate it, you simply take the totalnumberof conversionsand divide it by the number ofwebsite visitors(not to confuse it with the number of sessions). You can track theconversion rateof your whole website, for eachweb page, or the marketingcampaignconversion rateof your AdWords or Facebook ads.
Conversion rateFormula:
Thenumber of conversions÷ the number of visits. For example, if you had 30 conversions from 1,000 visits, yourconversion ratewould be 3%, since 30 ÷ 1,000 = 3%.
What is a Good conversion rate
It all depends on your industry, different industry have significantly differentbenchmarks. Theaverageconversion rateranges from 3% (apparel, electronics, hobbies) to 8% (automobile, law & government) So more than 10% is definitely ahigherconversion rate than average.
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What is a bad conversion rate
Below 2% to 3% is a pretty lowconversion rate, again this depends on your industrybenchmark, but if you have a 1% average pageconversion rate, you can safely assume it's low and you should concentrate onconversion rateoptimization(CRO). Maybe change yourcall to action(CTA) modify theuser experiencetoincrease conversionor simply rethink your marketing efforts.
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Conversion rate KPI examples & templates
Youraverageconversion ratecan be added to multiple different types of reports.
See this KPI in action here!
Ecommerce report template
Ecommerce report templateA report with all the most important metrics for your ecommerce site, like shopping cart abandonment, click-through rate (CTR), and of course your ecommerce conversion rate.
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Digital marketing report template
Digital marketing report templateFrom SEO to social media and PPC, this report gives you a good view of all your online marketing strategy metrics and overall conversion rate.
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Google analytics report template
Google analytics report templateSimply plug yourconversion goals (and even your data from Google Ads), and track a specific conversion rate,webpagenew customers, conversion tracking, and way more.
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Conversion rate best practices
There are a couple of things to keep in mind when tracking yourconversion rate:
Track it alongside other metrics
Track it alongside other metricsA 50%conversion ratesounds amazing, right? But if you only got 2 visits frompotential customers, that's just 1 conversion, which might not be such a great result after all. By tracking yourconversion ratealongside traffic and thenumber of conversions, you'll have a better idea of your performance.
Conversion optimization
Conversion optimizationTo maximize your return on investment, make sure you optimize yourconversion rateas much as possible. Gaining even 1% on all your pages or ads can mean a whole lot more revenue in your pockets. Don't forget to take into consideration themobile devicesor yourmobile appas well.
Do a/b testing
Do a/b testingOptimization comes hand in hand witha/b testing. You might think that your conversions are going to improve after a change in yourCTA, but bottom line, you might hurt your conversions without knowing.
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Conversion rate synonyms
Although conversion rate is widely used, there are multiple synonyms that can be used. Here are a few :
Conv. rate, Conversion %, Conv. %, Goal conversion rate, Conversion ratio, Conversion / visits, Conversion / session, Conversion / click, Conversion per session, Goal completion rate, Goal rate, Website conversion rate, Campaign conversion rate, Ad conversion rate, Marketing conversion rate, Action rate, Transaction rate, Average conversion rate, Ecommerce conversion rate, Overall conversion rate
Ressources about conversion rate
Learn to use This KPI in our Help Center
- Am I missing any latent conversions in Google AdWords?
- How do I create a Master Google AdWords dashboard with all my clients’ accounts?
- How to create a Google Analytics (Universal) dashboard?
Read about this KPI on our blog
- How to track landing page conversions
- A guide to PPC metrics
- You’re 4 minutes away from a higher AdWords ROI
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- Cost per lead (CPL)
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- Return on marketing investment
- Bounce rate
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- Average time on page
- Traffic sources
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