How to Calculate your Conversion Rate

June 16, 2014

You may be wondering to yourself, how do I figure out my conversion rate? This article will answer that question. Lots of people are talking about conversion rates these days. Specifically about how to improve them. That’s probably why you are on this site. The reasons are easy to understand… increasing your conversion rate will result in high sales figures, without spending any additional money on marketing!

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:

Number of Lead forms filled out/Traffic on Landing Page X 100 = Conversion Rate
3. Website Sales Conversion Rate:
Number of Sales/Number of Visitors X 100 = Conversion Rate
Originally published June 16, 2014 - Updated April 15, 2019
Co-founder and CEO of Convert.com, Dennis is a passionate community builder and out of the box thinker. He spends his time innovating to make Convert Experiences better. Learn about his journey as an entrepreneur and leader on the SaaS Club podcast.

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