Conversion Rate: What Is a Conversion Rate? (2024)

Your conversion rate is the percentage of visitors to your website that complete a desired goal (a conversion) out of the total number of visitors. A high conversion rate is indicative of successful marketing and web design: It means people want what you’re offering, and they’re easily able to get it!

Conversion rates vary widely by industry and business model. You can head to our conversion rate benchmarks to learn average conversion rates for Google Search, Display, Shopping, Facebook, and more.

How to improve your conversion rate

Raising your conversion rate means that more of your site traffic converts to meaningful actions that grow your business, whether that means filling out a form to become a lead (for example, requesting a quote for a repair service) or making a purchase.

A low conversion rate could point to either of these problems:

  • Your site and landing page design is making it difficult or inefficient to complete tasks
  • Your offer is off base (too expensive or not valuable enough to your audience)

Let’s talk about how to fix both of these problems.

First, consider your offer

The absolute best way to increase your conversion rate is to change your offer. If what you’re offering is truly irresistible, more people who visit your site will want to get it.

Conversion Rate: What Is a Conversion Rate? (1)

For example, WordStream was able to raise conversion rates significantly by creating the free Google Ads Performance Grader, a tool that delivers a complete Google Ads audit instantly. There’s so much value, people can’t help but convert.

Second, optimize your site for conversions

Once you’re sure that your offer is right for your audience, you can make incremental improvements to your conversion rate by optimizing your site. Below are some basic conversion rate optimization tips:

  • A/B test different elements on your page to see which variation drives more conversions
  • Make sure your headline clearly communicates your value proposition
  • Try enlarging the site of your button or using a high-contrast color
  • Keep important page elements (like forms and buttons) above the fold
  • Use a strong call to action (CTA) that entices people to act
  • Use only high-quality product images
  • Consider adding a video to your landing page
  • Make sure that your site and landing pages perform well on mobile devices
  • Make it easy for potential customers to reach you via chat or phone

Conversion Rate: What Is a Conversion Rate? (2)

For more help, check out these additional resources:

Conversion Rate: What Is a Conversion Rate? (2024)

FAQs

What do you mean by conversion rate? ›

A conversion rate records the percentage of users who have completed a desired action. Conversion rates are calculated by taking the total number of users who 'convert' (for example, by clicking on an advertisem*nt), dividing it by the overall size of the audience and converting that figure into a percentage.

What is the conversion of rates? ›

Converting rates allows us to compare rates given in different units and to also obtain a rate in unit suitable for a particular application. To convert a rate, we want to multiply or divide the rate by the appropriate constant. So to convert a rate in m/min to m/s, we want to divide the rate by $$60.

What is a CVR in business? ›

Conversion rate is a metric in sales and marketing that shows the number of desired actions completed divided by the total number of people who saw the offer. Conversion rates help marketers measure the effectiveness of their efforts and calculate return on investment.

What is a conversion ratio? ›

The conversion ratio is the number of common shares received at the time of conversion for each convertible security. The higher the ratio, the higher the number of common shares exchanged per convertible security.

Why do we use conversion rate? ›

Here's why: Conversion rates measure the effectiveness of your marketing campaigns. Conversion rates help you gauge the health of your revenue streams. Conversion rates help you identify areas that need improvement in your sales funnel.

Why does conversion rate matter? ›

Your conversion rate can tell you a lot about your content and marketing tactics. If your conversion rate is low, it may mean that your content isn't resonating with people or that your offers aren't appealing.

What is an example of a CVR? ›

The CVR formula is calculated by dividing the number of users who converted by the number of users who clicked on the ad, and then multiplying by 100. For example, if 1000 users saw an ad, and 15 users installed the advertised app, then the conversion rate would be 1.5% - meaning the ad converted 1.5% of users.

What's a good CVR? ›

An average conversion rate for a website is between 2 percent and 5 percent. Website conversion rates higher than 5% are considered to be “good” or above the average.

How is CVR calculated? ›

Conversion rate = (conversions ÷ total audience) x 100

There is not one sole standard conversion rate, though in the marketing industry it's typically defined as the number of conversions divided by the total number of visitors on your site, with the conversion rate as a percentage.

What is a good sales conversion rate? ›

Research also concludes that around 10% is a good sales conversion rate with the average conversion rate across industries being 2.5%.

How do you calculate conversion value? ›

Conversion value is calculated by multiplying the common stock price by the conversion ratio.

What does conversion ratio mean in sales? ›

What is Sales Conversion Rate? The Sales Conversion Rate measures the effectiveness of your sales team at converting leads into new customers. It's an important metric for aligning your sales and marketing team as both teams will use this metric to determine the quality of leads.

Is conversion rate the same as sales? ›

The sales conversion rate is used to measure the effectiveness of a sales strategy. It is calculated as the total number of sales divided by the total number of qualified leads multiplied by 100.

How to improve the conversion rate? ›

13 Ways to Increase Your Conversion Rate Right Now
  1. Do A/B testing. In real estate it's about location, location, location. ...
  2. Create a compelling and clear value proposition. ...
  3. Set up a sales funnel. ...
  4. Cut the jargon. ...
  5. Address objections. ...
  6. Increase trust. ...
  7. Make it easy to buy from you. ...
  8. Communicate value.

Why is my conversion rate so low? ›

The key reasons for low average website conversion rates include poor website design, confusing messaging, asking for too many actions at once, lack of trust signals or social proof, technical issues, and low-quality traffic, your website isn't mobile friendly, your website visitors have a bad first impression, you don ...

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