What is Conversion Rate and Why It Matters

by | Sep 28, 2018 | Digital Marketing

After sharing with you what bounce rate is, for those who still have no idea what is conversion rate I’ll break it up the easiest possible way.

I’ll tell you the explanation of what is conversion rate, I’ll share with you the formula by which it’s calculated (don’t worry, it’s not a rock science) and of course, how to track it, how to increase the percentage, and what good is it for your website and business.



Before we explain the rate, let’s start with the conversion. Let’s say you have a website and you want the visitors of it to do an action that you desire.

You want them to subscribe with email, to fill a quest, to make a purchase, or you want them to click on a particular button, link or image. Whatever it is, when the visitor of your website completes your desired action, it’s called conversion. Simple as that.

What is Conversion Rate


Conversion Rate

What is conversion rate, you can probably figure out by now. It’s the percentage of visitors that took the desired action out of all the visitors to your website.

Here is the formula to help you understand what is conversion rate:

CR = NC ÷ NV


CR = Conversion Rate

NC = Number of Unique Visitors Who Become Customers

NV = Number of Unique Visitors

Let’s make it even easier. If you have a high conversion rate it means you have a lot of people from all the visitors to your website, that are doing exactly what you want them to do. If you compare it to the users and the sessions, you’ll find an even deeper connection.

You’ll find out that the visits to your website can be high and still people might not do anything when they visit. Or the opposite, which would be better, of course – not so high number of visits, but high enough conversion rate.

When you are having an AdWords campaign, that’s the most important track you have to do during and at the end of it. The success of your campaign breaks down to the conversion rate and the percentage of people that did what you asked them to. It means your design is good, your marketing is good and what you are offering is good too.

It’s a sad fact, but truth is, not a lot of people are actually tracking it and have no idea what is conversion rate. Scary how some of them decide to run a campaign or have some marketing strategy, but just leave it to that. Just like spending a few hours cooking a good meal and then not even tasting it.

I was going to make it a new point why tracking the conversion rate matters but that pretty much sums it up. Tracing the results of your work and actually finding out if you succeeded in it, must be the most important part, right?


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Now, this might be a little bit blurry for you. Like any other thing, the first step is to do research. There is information online about all the industry and the average conversion rate. So, this way you can compare yourself to the average. Usually, it’s around 2, 3, 4%, maybe even 10%. You should know that it’s a personal outcome that you need to get to, but still comparing yourself will be easier if you’re just starting.

After a while, you’ll get the idea what is the conversion rate that’s good for you and you’ll set your own goals. You will later be comparing the results to your previous ones. This way you’ll know if you are growing, getting better and more convincing.


What is The Reason You Have a Low Conversion Rate?

I explained to you, what a good and high conversion rate is, and how you can find it out. But what if your conversion rate is low? What could the reasons be?

Let’s start with your campaign. There are a few things that can happen. First, your banners. You have a landing page, you have a good offer, so you’re sharing advertising banners around the Internet. If they are not attractive enough, no one will even get to your landing page and your good offer. It’s starting backward, but you need to visualize it in order to understand it.

Next on our back way, is the landing page. There are a lot of good advice articles on how to make the perfect page, but if you haven’t read. Here is short advice. Try! You can have a good landing page but not everyone will think this way. When it comes to attracting people on the Internet, you can’t be sure what they like.

What is Conversion Rate


So even if you have a beautiful landing page, people might not like it. So, TRY! If one is not working, change it. Change the colors, change your slogan, the call to action buttons, change whatever you feel like. Then try again and follow what looks better for the visitors of your website.

And if your page is good, what is conversion rate still wanting? Well, your offer of course. You might be attracting people with your creative look, but if what you are selling is too high, or the promotion is not good enough, then there is really no chance your campaign will be successful.

Try presenting an offer that is alluring and the right percentage off, if it’s a promotion. If all the above are considered good for the visitors of your site, then you shouldn’t have a conversion rate problem. Last but not least, check how product description writing also matters for converts!


Last But Not Least

As a final conclusion, I’ll share with you a few more tips for optimizing your page. What is conversion rate you already figured out. But to how to improve it there is a lot more you can learn. Stopping at the landing page, here is what more you can do. And to make it easier for you I’ll combine it with the first tips so that you have them at one when you need.

What is Conversion Rate


  • Use the best colors! The big contrast is usually the best way to attract the look of a potential visitor. The colors on the banner, on the page, on the call to action button, and even on the images.
  • Call to action! Make it strong. Short sentences are harder to think of, but take time to it.
  • Impelling slogan. What you say to the visitors is what they’ll do. But only if you say it right.
  • Use photos of high quality and well connected to your offer.
  • Consider using a video. But be careful, it’s a knife with two blades! The video needs to be a good quality too and fast loading because when it’s on a landing page, people won’t wait for it to load.
  • Mobile friendly. Check and make sure your banners, page, and the website are looking good on mobile devices because as you know there is a big chance people are accessing from there. (P. S. you can also track this in Google Analytics and find out how much of your users are on PC, and how much on Mobile or Tablet)
  • Ease the check-out. The last step to the life of the visitor from finding your ad to purchasing is how easy it will be for him to do it. Don’t lose them in the final act.



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