WHAT IS CONVERSION RATE?

07/05/2018

Definition

The percentage of visitors who take a desired action or the average number of conversions per ad click, shown as a percentage.

Information

The desired action can take many forms, varying from site to site. Examples include sales of products, membership registrations, newsletter subscriptions, software downloads, or just about any activity beyond simple page browsing.

A high conversion rate depends on several factors, all of which must be satisfactory to yield the desired results — the interest level of the visitor, the attractiveness of the offer, and the ease of the process.

The interest level of the visitor is maximized by matching the right visitor, the right place, and the right time.

The attractiveness of the offer includes the value proposition and how well it is presented to connect with the user.

The visitor’s ease of completing the desired action is dependent on site usability which includes intuitive navigation and fast loading pages.

Calculation

  • Conversion rates are calculated by simply taking the number of conversions and dividing that by the number of total ad clicks that can be tracked to a conversion during the same time period. For example, if you had 50 conversions from 1,000 clicks, your conversion rate would be 5%, since 50 ÷ 1,000 = 5%.
  • If you’re tracking more than one conversion action, or you choose to count “Every” conversion, your conversion rate might be over 100% because more than one conversion can be counted for each click.
  • Use conversion tracking in your account to measure your conversion rates and ultimately use them to help guide your advertising decisions.

Source:
marketingterms.com
support.google.com/adwords/answer/2684489?hl=e

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