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What is conversion rate? It’s the percentage of website visitors who take a desired action, like purchasing, signing up for a newsletter, or downloading a white paper. It’s also an essential metric for businesses because it can measure their marketing campaigns and website design effectiveness.

In this blog post, we’ll cover the basics of conversion rate, including what it is, how to calculate it, and how to improve it. We’ll also discuss some of the most common conversion rate optimization (CRO) techniques. 

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Conversion Rate metrics funnel for an in-app event.

What is a Conversion Rate?

A conversion rate records the percentage of users who have completed a desired action. It can be purchasing, signing up for a newsletter, or filling out a form. It is calculated by dividing the number of conversions by the total number of visitors, usually multiplied by 100.

Here is the formula for conversion rate:


For example, if an e-commerce website has 10,000 monthly visitors and 1,000 sales, the conversion rate would be 10%. This means that 10% of the people who visited the website took the desired action of purchasing.

Conversion rate is a critical metric for businesses operating in the digital landscape. They measure the success of many marketing campaigns and offer deeper insights into customer behavior.

Why Conversion Rate Is  Important?

The importance of this specific metric in modern business cannot be overstated. A high conversion rate indicates that you attract exemplary website visitors. It means your website is easy for visitors to navigate and take action on.

Here are some of the specific benefits of having a high conversion rate:

  • Increased revenue: A higher conversion rate shows more website visitors become customers and buy your products or services. This can lead to a significant increase in revenue for your business. This graph will show you the relationship between CR and revenue:
  • Reduced customer acquisition costs: It usually costs more to bring in new customers than to keep the ones you already have. When you improve your conversion rate, you turn more website visitors into customers. This means you spend less money finding new people to buy your products or services.
  • Improved ROI on marketing campaigns: When you track your CR, you gain valuable insights into which marketing campaigns are most effective at driving traffic to your website. Additionally, this data helps you understand how well you convert visitors into customers. Therefore, you can allocate your marketing budget more effectively and improve the ROI of your campaigns.
  • Better understanding of your customers: You can learn more about them and what they seek by tracking your conversion rate. This information can help you to improve your product offerings and create better marketing campaigns. 

You can read more about what is a sitemap to understand how the site map contributes to your website’s performance!

What Factors Impact Conversion Rate?

After finding out what the conversion rate is, we will now explore what factors impact this metric. In fact, there are 5 factors that can influence this metric, including:

  1. Website design: A well-designed website is straightforward to find and use, and it is visually appealing. Visitors should be able to find the information they are looking for quickly and easily. To have a user-friendly website, you must have some SEO plugins for WordPress to optimize.
  2. Product or service quality: Visitors are more likely to convert if they are interested in your product or service. Ensure that your product or service is high quality and meets your target audience’s needs.
  3. Pricing: Your pricing should be competitive and in line with the value of your product or service. If your prices are too high, visitors are less likely to convert.
  4. Value proposition: Your value proposition should clearly show the benefits of your product or service. What makes your product or service different from the competition? Why should visitors choose you?
  5. Call to action: Tell visitors what you want them to do, and make it easy for them to do it. For example, if you want visitors to read your article, include a clear and concise call to action in the meta description. When done correctly, CTAs can make your meta descriptions more persuasive and compelling, leading to more traffic to your website. Here are some CTA examples.

How To Improve Your Conversion Rate?

Conversion rate optimization (CRO) is the process of improving the percentage of visitors to your website who take a desired action. Looking to boost your website’s CR? 

Here are a few simple tips to help you get more people to take the actions you want.

  • Target the right audience: Make sure that your marketing campaigns target the people most likely to be interested in your products or services. You can use demographic data, interests, and other targeting criteria.
  • Create a user-friendly website: Your website should be easy to navigate and use. Visitors should be able to find the information they are looking for quickly and easily. Ensure your website is mobile-friendly, as many users use their smartphones and tablets to enter the internet.
  • Offer clear and compelling value propositions: Make it clear to visitors why they should choose your product or service over the competition. You can also highlight the Unique Selling Point (USP) that your product or service offers.
  • Make it easy for visitors to take the desired action: Tell visitors what you want them to do, and make it easy for them to do it. For example, if you want visitors to sign up for your newsletter, include a clear and concise sign-up form on your website. You can also use buttons and calls to action to guide visitors toward the desired action.
  • Test and optimize: You can outsource website optimization services to find out what works well and needs improvement. By reducing this complex task, companies can free up internal resources to focus on core business activities, thus maximizing overall productivity and efficiency.

Understanding “What Is Conversion Rate?” is crucial for any business operating in the digital landscape, as it is a key performance indicator for your website and marketing campaigns. A high conversion rate not only signifies effective marketing and website design but also leads to increased revenue and better ROI. 

By focusing on factors like target audience, website usability, and value proposition, and by continually monitoring and optimizing, businesses can significantly improve their conversion rates and, subsequently, their bottom line.