How to Calculate Your Website Conversion Rate?
How to Calculate Your Website Conversion Rate?by James Tredwell
Businesses around the world look for maximizing their sales and revenue for a better ROI. This is very obvious and logical as any business would like to be on top of what it is doing. To track the performance of a website is very important because to manage the ROI, it is a critical factor. That’s why every company, regardless of its size and nature of business, must look into this aspect seriously. But you will be amazed that companies on a whole do not take it seriously as they should.
Although it is one of the most cited metrics used by companies across the globe, the ones who don’t understand this clearly are bound to face difficulties. Managing a business isn’t a simple equation as there are many factors involved in it. If you are thinking that you own a small business/startup and don’t need to calculate your website conversion, you are so wrong.
Why Every Business Need to Know its Conversion Rate
If you are not able to correctly calculate your conversion rate, this will affect your business big time. Don’t assume that if you are running a small apparel store online that it won’t affect you much. It is a very powerful tool that offers you a rich insight about the performance of your website and what you need to do in order to make it optimum.
Calculating the website conversion is not that hard and any company can easily calculate it. The main aspect is that what you can achieve it after getting the result. In other words, once you will get how many visitors of your website turned into your customers, for example, what you will do next and what will be your plan of action after this revelation.
Calculating your Conversion Rate
Finding out the number of visitors that visit your website and actually bought something is your conversion rate. There are two main types of figures that you can get in terms of lead generation and sales. Take a look at the formula below as it is not that difficult to comprehend.
Conversion Rate = Number of Goal Completions/Total Number of Visitors
Number of total leads/total traffic of website*100
Number of sales/number of visitors*100
End of Story? Not Quite
Calculating the total number of leads or number of sales is required for conversion rate and you need to have a starting point for getting the number. You can select a financial year or quarter for this purpose. This is important as you need to take into account leads which are relevant over the course of time as no company don’t want to include leads which are 6 months or a year old and certainly not relevant right now.
The number of sales is the figure that you need to increase all the time as in actual this figure will make your revenue and profit grow, not the leads. While qualified leads are also important but until you are not able to sell your product/service, no figure is worth anything.
More Conversion Rate Metrics you Need to Keep an Eye on
Website conversion rates are not limited to just the sales figure. Although it is the most important one, other factors can give you a complete picture about where are you standing in terms of traffic coming to your site and what your visitors are up to. Some of the factors that you need to take care of are:
- Consultation request.
- Information sought
- Looking for exact quote
- Signup for email for newsletter/special offers
The above mentioned list is not complete but is provided to give you an idea that there are more aspects to conversions other than the actual number of sales.
Use of Google Analytics to Track down your Conversion Rates
Many people are unaware of this simple tool that Google analytics provide. The goals feature enables you to set up goals on your site that you want to keep track of specific user activities. But firstly, you need to have a clear idea of the goal you want to measure like sales. Next step is the development of a landing page so that you can get the data about traffic. So it is easy to set up goals that offer you the facility of calculating basic conversion rates.
Tracking your conversions rates and what ROI you are about to get after all that investment is not a hard process so that you need the knowledge regarding rocket science to understand it. But since it is something out of ordinary that people usually don’t use, it comes a bolt of lightning for them.
I am sure you are now among those people who see conversion rates and tracking their visitors and ROI as something out of this world. It is a process that will easily fit in your routine once you will do it twice or thrice. Please let me know that what you think about this post. If you have any queries in mind or want to give your valuable feedback, please do so by using the comments section below.
Author Bio :- Irfan Ak is a digital marketing expert and a blogger. He is a passionate digital strategist. Currently, associated with best SEO Company. He has worked with various other brands and created value for them
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