Why is everybody crazy about conversion rates?

“Show me your conversion rate and I will tell you who you are.” The madness about conversion rates has enveloped the world of marketing. Conversion rates are the most important metric for e-commerce managers and marketers in general. The indicator tells you how many goals you’ve achieved on a website, including the following:

• number of registrations,
• number of returning customers,
• number of subscriptions to a newsletter,
• number of completed purchases,
• number of people who have filled out a contact form,
• and many more.

How do we measure conversion rates?

A conversion rate can be counted simply as the proportion of visits to a website that result in users taking a specified action relative to the number of visits in general.

Conversion rate = number of goals achieved ÷ number of overall visits

For example, the conversion rate of an online store could be defined as the number of purchases of a product out of all of the customers who clicked on an ad banner promoting that product.

What determines the conversion rate?

A conversion rate is determined by several factors: customer interest, brand awareness, product attractiveness, offer attractiveness, the simplicity of the purchasing process, the effectiveness of the website or campaign, and the website’s user-friendliness.

Measure, measure, measure

Conversion rates are directly linked to sales, which is why they are so important. The way to improve user processes is to measure conversion  rates correctly and constantly. Implementing appropriate conversion-tracking tools and observing the results daily, weekly and monthly are crucial. This will enable you to take the required steps when you observe any changes. 

For example, a lower conversion rate on Mondays could be caused by lower interest in online shopping among customers, which you could address by introducing special offers on that day; or perhaps you would find that the lower conversion rate is caused by technical problems with your page loading and that you can take immediate steps to rectify the situation.


“How to Improve Conversion Rates,” Dave Lavinsky, Forbes

“Optimizing Conversion Rates: Less Effort, More Customers,” Frank Puscher, Smashing Magazine

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