Conversion rate (CR) in marketing explained + free 🔢 calculator

Conversion rate (CR) is a significant metric in marketing that evaluates the effectiveness of marketing campaigns and websites. It measures the relationship between the number of visitors who perform a desired action (e.g., make a purchase, fill out a form, or sign up for a newsletter) and the total number of visitors. CR is critical to understanding and optimizing the success of marketing efforts. Discover even more KPI & marketing calculators here.

Meaning: Definition in marketing

The conversion rate shows how successful a marketing campaign or website is at converting visitors into actual customers or leads. It is expressed as a percentage and can be applied to different actions, depending on the goals of the campaign or website. A high conversion rate means that a large percentage of visitors perform a desired action and the marketing strategy is effective.

Calculation: Calculate CR

The calculation of the conversion rate is simple. You take the number of visitors who took a desired action and divide it by the total number of visitors, then multiply the result by 100 to express it as a percentage. The formula is:

CR = (number of conversions / total number of visitors) * 100

To illustrate, let’s say an e-commerce website has 5,000 visitors in a month and 250 of them make a purchase. Then the conversion rate is:

CR = (250 / 5000) * 100 = 5%

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Meaning of the CR calculation

Conversion rate is crucial to analyze the performance of marketing campaigns and websites. A high CR indicates that the website or campaign is effectively engaging visitors and motivating them to perform the desired action. A low CR, on the other hand, may indicate weaknesses in the marketing strategy or website that need to be improved to increase the conversion rate.

Example: Conversion rate optimization

An online store wants to increase its conversion rate to convert more visitors into paying customers. In the last three months, the website had 10,000 visitors and 200 of them made a purchase. The current conversion rate is:

CR = (200 / 10000) * 100 = 2%

The store decides to revamp the website design and improve the user experience to make the buying process more intuitive. In addition, various call-to-action elements are tested to make the calls to action more effective. As a result, the conversion rate increases to 3.5%.

Conversion rate optimization enables the online store to convert more visitors into paying customers and increase sales.

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