What is conversion rate? How to calculate conversion rate?

Conversion – what is it and how to calculate it?


Every owner of a commercial web-project sooner or later has to deal with the notion of “conversion”. We will tell you about what it is and why every businessman should be “on your toes” with conversion.

What is conversion

Conversion, CV, conversion rate, CTR or close rate – this is one of the basic concepts of Internet marketing. In simple terms, conversion is the ratio of unique visitors to the active actions they take there. By these actions, we mean completed transactions (buying and selling), registration, feedback (online correspondence or call), banner clicks and many other actions, the commission of which will bring the customer benefits. Conversion is measured as a percentage over a certain period of time: week, month, season, year.

It is very important to understand the conversion and how to calculate it for the site, because it is the conversion that most clearly demonstrates the success or failure in managing the site.

Types of conversions

There are several basic types of conversions, namely:

  • direct and associative conversions;
  • micro- and macro-conversions from direct conversion means a specific active action of the user who visited the resource. The definition of conversion is counted by the extreme source from which the visit was made. As practice shows, contextual advertising is the most common such source;
  • the next type of conversion is associated conversions. These are visits that were the basis for creating a hidden type of conversion, which are usually not reflected in Google AdWords and other specialized resources.

Macroconversion is an indicator that reflects the achievement of the main goal of any selling website. We are talking about a completed sale transaction (purchase, payment, delivery). It’s important to understand that the macro-conversion indicator is not the “Add to cart” action.

When working with corporate resources, a macro-conversion is not a standard transaction, but the acquisition of a potential client who has responded in some way to your advertising or marketing operations (lead). This user must leave an application on your site, which contains his contact information.

Macroconversion is the most important and most significant indicator for the owner of any online store. Every Internet marketer should work on increasing this value.

Another common type of conversion is micro conversion. Microconversion refers to a huge number of actions performed by the user, but these actions do not bring direct profit to the resource owner. We are talking about subscribing to the newsletter of promotional materials, news, discount coupons, viewing the page with contact information, the procedure of authorization on the site with the help of profiles in social networks or direct registration on the site and much more.

We believe that micro conversion is just as important as macro conversion. If a user has performed at least one of the above operations, it means that their engagement is at a very high level. If the owner of an Internet resource systematically monitors micro conversion, he will be able to understand how to move the user from the category of a potential customer to the category of an actual or permanent customer (macro conversion).

How to calculate conversion rate

There is a universal formula for calculating the conversion of your site: the number of target actions performed by the user on the site, divided by the total number of visitors to the resource (site) and multiplied by 100.

Conversion rate formula - calculate CR easy
Site Conversion = (amount of targeted actions/all site visitors)x100

For example: from 1 to 10 of the current month your website was visited by 10,000 people. During the same period, 400 targeted actions (i.e. purchases) were made. Based on this data, you can understand that the conversion of the site is: 400 ÷ 10 000 × 100 = 4%.

It is worth noting that at first glance it seems that a conversion rate of 3-5% is very low, but it is not. Statistics show that 90% of modern online stores have a conversion rate of about 1%, sometimes even less. There is an opinion that if the conversion rate of a landing page is lower than 2%, it means that you and your marketer are not working together enough. But the specifics of the product being sold also affects the conversion rate.

What services will help to find out the conversion rate

The most commonly used services for analytics and conversion calculations on the site:

  • Google Analytics.
  • Yandex.Metrika.

In order to find out the conversion rate through Google Analytics, you need to register and install a special counter code. In order to get the most correct and relevant data for you, you need to additionally specify the goals. A cool thing about this program is that there are a lot of templates that you can use, such as time spent on the site, making a purchase, registration or authorization on the site, and much more.

The service “Yandex.Metrika” works absolutely on the same algorithm, but it is somewhat complicated by the complete absence of goal templates. In order to qualitatively track conversion on your site, you have to manually enter from 1 to 100 unique goals. This significantly increases the time spent on the resource. Besides, Yandex.Metrika has an option to view the so-called delayed conversion – an indicator that takes into account all time-delayed operations on the site.

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