How to Calculate your Conversion Rate

What is the conversion rate?

Your conversion rate is a ratio of prospects to completed transactions (conversions.) How you define a completed transaction will be specific to your offer. Many companies use the internet to generate leads. In this case, the transaction of interest is a completed lead form.

Perhaps your are running an ezine newsletter. In this case, a conversion would probably be defined as someone who signed up for your newsletter. Most businesses will actually be interested in measuring, calculating, and improving several different conversion rates.

How do I measure my conversion rate?

To measure your conversion rate, you will need to use a tracking application. There are many different ones available on the market, and you can also use a standard log analysis package.

In addition to helping you improve your conversion rate through testing, the Vertster tool includes a powerful conversion rate tracking system.

How do I calculate my conversion rate?

Once you have set up your tracking system, and assembled the data, you will need to calculate your rate. This is a simple formula:

Total Conversions/Total Views X 100 = Conversion Rate

Here are some examples, of how you could compute conversion rates for different scenarios and transaction types:

1. Lead Generation Conversion Rate:
   Number of Lead forms filled out/Traffic on Landing Page X 100 = Conversion Rate
2. Website Lead Conversion Rate:
   Number of lead forms filled out/Total Traffic on Home Page X 100 = Conversion Rate
3. Website Sales Conversion Rate:
   Number of Sales/Number of Visitors X 100 = Conversion Rate