What is a Conversion Rate?

The conversion rate records the percentage of customers who have completed the desired action. Conversion rates are calculated by dividing the total number of users (for example, by clicking on the ad) by the total size of the audience, and converting that number into percentages.

For example, suppose an advertiser runs a mobile advertising campaign to reach 10,000 viewers on Facebook. Of those 10,000 people, a total of 600 users clicked on the ad (in this scenario it is an exchange program). Therefore, the total conversion rate for this campaign can be calculated as follows:

600/10000 = 0.06, or 6% exchange rate

With the knowledge of 6% of consumers who have seen an ad, marketers now have a metric on which they can try to improve for further growth.

Just go through the video below for a further explanation of Conversion Rate (CVR).


How to calculate a Conversion Rate?

Now that we have a basic understanding of the topic of exchange rates and define some common goals, let’s calculate the CVR magic number.

So, how do you calculate the exchange rate?


conversion rate formula


Here are 3 Conversion Rate formulas to use:

Conversion rate = Total conversion number / Total number of sessions * 100
Conversion rate = Total number of conversions / Total number of special visitors * 100
Conversion Rate = Total Conversion Number / Total Leads Number * 100

Note: These 3 principles are valid. The best way to calculate the conversion rate depends on how you precisely define your exchange event and how you plan to measure the traffic. The numerator measures your conversions (defined by your conversion rate target) and the denominator you define is your total traffic pool (usually session count, specific visitors, or leads).

Why is your Conversion Rate important?

Traffic conversion rates allow you to estimate the performance of your web pages and apps. Understanding what percentage of your customers are reaching the goals that drive your business will allow you to assess your site or app’s success and identify areas for improvement.

By improving your conversion rate you can drive more sales with the same amount of traffic. If you spend $ 1,000 a month advertising to bring 500 visitors to your site, you’re doubling your conversion rate, doubling your ad cost value. You can reduce your advertising costs and make the same profit as before or invest extra revenue in new advertising programs.

How to improve your conversion rate?


conversion rate


Increasing your conversion rate means turning more traffic to your site into meaningful actions that will drive your business, whether filling out a form to become a leader (for example, requesting a quotation for repair service) or a window shop. Learn about CRO from here.

The low exchange rate indicates any of the following problems:

  • Making your site and landing page design tasks difficult or inefficient
  • Your offer of base (too expensive or not valuable enough for your audience)

Let’s talk about how to solve these two problems.

First, consider your offer

The best way to improve your exchange rate is to change your offers. If what you offer is truly irresistible, more people who visit your site will want to get it.

For example, WordStream has significantly increased conversion rates by creating a free AdWords Performance Grader, which provides a complete AdWords audit immediately. There is so much value, that people can’t help but change. Learn about google page RPM.

Second, optimize your site for conversion

Once you make sure your offer is right for your audience, you can improve your conversion rate by optimizing your site. Below are some basic conversion rate optimization tips:

A/B tests different aspects of your page to see which variation leads to more conversions

Make sure your title clearly states your value proposition
Try expanding your button site or use a high-contrast color.

  • Place important page elements (such as forms and buttons) on top of the fold
  • Use a strong Call to Action (CTA) to motivate people to take action
  • Use only high-quality product images
  • Consider adding video to your landing page
  • Make sure your site and landing pages work well on mobile devices
  • Make it easy for potential customers to reach you by chat or phone

Hope! you find this content interesting. don’t forget to share and leave comments. Thank you.

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