Conversion Rate: What is it and how to calculate it?

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Conversion Rate is a metric widely used to measure the results, especially in Digital Marketing. An example is the Lead conversion rate, which to calculate, simply divide conversions for your audience. For example, lead 300/1000 * 100 = visitors 30% Lead conversion rate.


Many companies look at the conversion rate as a metric to be used as a thermometer to understand the actual site of the communication efficiency or a specific page.

Some people prefer to use this information purely to target setting of a commercial team or an ecommerce.

In others prefer to just browse this data once a year, to understand how the performance throughout the year and define strategic actions upon it.

And believe me: there are those who do not look at this data, does not fully understand its importance or not even know how to measure it.

But, after all, it is so important to measure this data? Where he directs us and how can I use it to my advantage?

We will answer these questions or here to open a space to discuss on the topic.

What is conversion rate, anyway?

The purpose of this metric can be understood as is the return of each investment of your business, be it time or money, in relation to sales.

But it can also be a good way to measure the results of their digital marketing strategy.

It can also be the simple filling of a registration, the request for a budget or even enrollment in a newsletter .

Understand your conversion rate is very important because it will make it clear how efficient and mature is the site, and also of the utmost importance to monitor the business results as a whole.

The conversion rate can be calculated from all stages of the sales funnel and brings a diagnosis of where the bottleneck, the weak point of the strategy and, above all , shows where we must act.

If you want to understand how to optimize the rates of your funnel, from attracting a visitor to the site, to the closing of a sale, see the post Conversion rate: how to optimize throughout the sales funnel .

How the conversion rate helps to measure the results?

There is always some investment in money or even time in a company to launch a campaign.

Now imagine if you get ways to understand exactly the result of this work as precisely as possible.

You can, for example, create a Landing Page for a promotion and boost it in some media. People will begin to access the page, showing interest in the content.

Of all the people who access those that actually have interest in the subject will fill out a form, as its strategy to achieve the conversion.

Okay, one more conversion for your page!

Every period, every campaign, you can assess the amount of people who converted versus the total amount of visits. There is only pursuing this number to understand how many actually evolved for closure. So, you will have a more accurate understanding of the return on your investment , be it in cash directly or time.

This is just an example of how to measure the conversion rate can help your company to better target efforts in Digital Marketing.

And we know from experience that an optimized conversion rate helps maintain healthy funnel.

How to calculate the conversion rate?

Very simply, we can measure the actual conversion of the site. We can measure the percentage of each stage, considering the following criteria:

  • Visitors to Leads;
  • Leads to opportunities;
  • Opportunities for customers;

See the image below that illustrates how is the funnel:

Sales Funnel

This is just an example, but the strategy of your company you consider interesting “break” in the funnel more steps or reduce it, just adapt it to their reality.

We go to a practical example, calculating the conversion of site visitors to Leads.

The goal here is we
capture the contact person who is browsing the site, understand who is the same to work later in your
nutrition .

A website with the volume of visitors to 10,000 accesses in a given period had 598 completed forms, conversion between points that are strategically arranged on some pages and pop-ups.

In this case, we calculate as follows:

  • Views: 10,000
  • Number of Conversions: 598
  • Calculation: 598 / 10,000 = 5.98%

Here we have a rate of 5.98% conversion of visitors to Leads.

It is important that you know which metrics to analyze at every stage and have complete diagnosis of the performance of your website and thereby direct efforts at the right point.

How to know if my conversion rate is good?

In the above example, we show a site that has a conversion rate of 5.98% during the period. That number is down? This is on! It will depend on your market, because there are comparisons between the segments that can give a better direction.

See our tool  Sales Funnel Benchmarking if you do not know the rates of its segment.

Anyway, it is clear that more than 90% of hits on this site are being lost for some reason.

That’s where a whole work in which your marketing team can act, to understand more precisely what happens to visitors who do not convert and understand the conversion of the entire funnel.

In general, the conversion rate is one of the most important metrics in a company and should be a latent concern.

It is a management and very important number, which will help in directing the company’s marketing efforts – without discarding the sales team, which will have the responsibility of bringing relevant insights related to Leads that marketing delivery, and thus to understand the quality of these leads and constantly work on the criteria settings.

If you want to achieve a good performance in your business, identify every weakness and opportunities that can be worked on to improve your results, be sure to track your conversion rate!

Want some help to get started? Need help to begin now to evaluate the performance of your website and directions to get started? Contact us! With the RD Station you can get quickly and easily the information.