Increasing conversion rate of a website is very important for any business as it is a Key Performance Indicator (KPI) to measure marketing/website performance. In simple terms, conversion takes place when the visitors of your website turns into customers or performs/completes the action you desire them to take in your website while conversion rate is the percentage of users who take a desired action.
Setting up conversion goals play a vital role in measuring the performance of website which in turn will help you to manage Return on investment (ROI). Before calculating the conversion rate it is essential to know the importance of conversion rate, the things that you need to measure and know about the tools for tracking conversion rate. Businesses can look into lead generation with the help of analytics and conversion data.
Google analytics is a good tool used to track and calculate the conversions of your website. According to reports a good conversion rate starts from 2% and can reach up to 12%.
To calculate the conversion rate of website you can use the formulas below:-
In general it can be:-
No. of Goal Completions/ Total no of Visitors = Your Conversion Rate
Outcomes / Unique Visitors = Conversion Rate
Unique visitors/conversions(leads) X 100 = Conversion Rate%
Visits /conversions(leads) X 100 = Conversion Rate%
For calculating website conversion rate, you might have to calculate lead conversion rate.
In Lead generation:-
Number of leads collected ∕ total traffic to site x 100 = conversion rate
For example:- 20/100 X 100 = 20
Hence the conversion rate is 20%
To improve conversion rate you can measure bounce rate which represents the percentage of visitors leave the website immediately, filter search bots, image requests, 404 errors, spurious requests etc.., as it will inflate the count of visitors and make use of customer intent where you have to do path analysis and measure conversions even if they are not converted into leads.
Hope these methods will be useful for calculating the conversion rate of websites.