Tips For Calculating the Conversion Rate Of Your Website

12th May 2016 0
Ravin Kapadia Chief Conversion Officer
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If your website is one of the primary weapons in your business and provides an edge, then conversion rate is probably the most important metric you care about. Knowing the amount of visitors being converted to customers provides an insight and an opportunity to improve things. But this crucial figure depends on the method you use for calculating the conversion rate of your website.

What is Conversion Rate?

The magical conversion rate is the rate at which visitors to your website become customers. Let’s say the conversion rate is 30% which implies that out of every 100 visitors, about 30 become customers. The figure can also be presented by a ratio i.e. 0.3 which implies the same thing. In general, figure given in decimal x 100 = percentage rate. Thus, this figure lets you make decisions and reach conclusions about the effectiveness of your website in converting visitors to customers!

However, the conversion rate is often categorized into two categories in reality. They are the lead conversion or product sales. What are these? Leads conversion, in general, refers to a generic visitor having more interest in your online platform and initiates creation of an account or signing up for newsletters which show more than normal interest and a potential sale opportunity. Thus, in other words, a conversion from visitor to a potential customer. Product sales, on the other hand, deal with actual sales and not potential figures. It is more concrete in that sense.

The magical conversion rate is the rate at which visitors to your website become customers. Click To Tweet

How to calculate the conversion rate?

The mathematics behind the rate is very simple. The only thing that you need is analytics i.e. data. Thus, you need to keep track of visitors and customers and avoid redundant and duplicate data. This can be done with proper analytics tools and full data logging. Once you have collected enough data, you can calculate the conversion rate. Before making calculations, decide what you need – product sales or lead conversion or both. Once the choice is made, the formulas are as simple as:

  • Lead Conversion Rate – Leads Converted / Total visitors x 100 %
  • Product Sales Rate – Actual products sold / Total visitors x 100 %

Note that while product sales figure deals with actual sales, it may stand beyond 100% theoretically. How? Well, you have 3 visitors, 2 became customers and bought 10 products! The lead conversion rate, on the other hand, will give you between 0 – 100 % always!

How do these figures help?

Conversion rate has a simple purpose – it shows you how effective your online strategy is. If your conversion rate is high enough, you have more customers because of your website. A low figure does not mean closing it down, but doubling your efforts on the web front. There are a number of ways in which you can increase your conversion rates!

The conversion rate is an important metric that conveys you the health of your e-commerce platform as a compact percentage figure. However, your website may have another purpose as well and this information goes best with other carefully collected analytics!

Conversion rate shows you how effective your online strategy is. Click To Tweet


Ravin Kapadia – Chief Conversion Officer

Ravin has in-depth understanding of all the digital marketing channels from search engine optimization to social media optimization. Through his conversion marketing strategies, Ravin has helped various online enterprises boost their profits.

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