Best Way to Calculate your website or campaign conversion rate
If you're a business owner and running advertising campaigns for your business, then measuring the conversion rate of the campaign is the most important and must-have strategy to increase sales and conversions. By measuring the conversion rate, any business can optimize the performance of their campaigns and increase the conversion rate.
But the question is, How do you calculate the conversion rate for your website or campaign?
In this article, we've covered everything about conversion rate, its importance and some effective ways to calculate the conversion rate for your business.
Let's get started!
What is the Conversion Rate?
A conversion rate is just a simple formula or metric that businesses use to measure the performance of their advertising campaigns and identify total sales, clicks, profit/loss, budget and other activities that happen during the campaign. It's essential for businesses to identify the sales, clicks, conversions, leads and other things so that they can determine whether the campaign is profitable or not and later make decisions to optimize the campaign and make it more powerful. In simple words, the conversion rate is a metric used to calculate the percentage of visitors converted as customers via website, store or landing page. Once a business identifies its marketing campaign activities, make changes and optimize the campaign for better results.
The Conversion Rate formula is:
Conversion Rate = (Total number of conversions / Total number of visitors)*100
Let's understand the conversion rate with an example:
If you're running an ecommerce store and want to analyze your store's conversion rate, then use this ecommerce conversion rate formula to identify the conversion rate.
To identify the conversion rate for your e-commerce store, you need to analyze how many percentages of visitors coming to your store get converted into customers.
For different businesses, conversions can be different like purchases, clicks, leads, fill forms etc. That's why businesses use different types of conversion metrics to identify the conversion rate:
- CPL (Cost Per Lead)
- CPC (Cost Per Conversion)
- CCR (Click Conversion Rate)
- CPA (Cost Per Action)
Let's discuss this in detail!
CPL (Cost Per Lead)
Cost Per Lead is a simple metric used by businesses to identify the cost required for each lead generation through their advertisement campaigns. With the cost per lead metric, businesses can figure out how much they're spending for each lead and are it profitable or taking more money for each lead. Once they've figured out the cost per lead, make changes in the campaign and make it a better campaign.
The Cost Per Lead formula is:
Cost Per Lead (CPL) = Total campaign cost / Total amount of leads
CPA (Cost Per Action)
CPA is also known as Cost Per Action, and this metric is used by businesses to identify the cost for each action taken by customers on a website, store or landing page. For businesses, action can be purchased, click, sales, refer, fill form etc. So it depends on the business requirements. With this metric, a business can figure out the amount spent for each customer action. This metric is one of the important metrics to determine the cost for each action and how businesses can optimize their campaign with this metric.
The Cost Per Action formula is:
Cost Per Action (CPA) Formula = Total campaign cost / Total amount of conversion
CCR (Click Conversion Rate)
CCR is also known as Click Conversion Rate, and this formula is completely different. Businesses use it to identify the conversion percentage of the total number of clicks coming through advertising campaigns. With the Click Conversion Rate metric, businesses can identify how many visitors come to the website, store or landing page and the conversion percentage of the total number of clicks.
The Click Conversion Rate formula is:
Click Conversion Rate (CCR) = Total number of conversions / Total number of clicks
CPC (Cost Per Conversion)
CPC is also known as Cost Per Conversion. This metric is used by businesses to identify the cost for each conversion through advertising campaigns. It's one of the essential metrics used by different businesses for different purposes because conversion is different for each business, including purchase, click, leads, sign-up etc., to identify this metric. It can calculate the amount spent for each conversion. It also helps to identify the changes required to optimize the campaign and get conversion at less cost.
The Cost Per Conversion formula is:
Cost Per Conversion (CPC) = Total campaign cost / Total number of conversions
What is a Website Conversion Rate?
If you're running a website and getting potential traffic that converts into customers, then it's time to identify your website conversion rate so that you can optimize the conversion rate for your website and grow your business.
First, you should understand that different conversions are available per business requirements. So where any visitor comes to the website, then businesses require these conversions:
- Sign-up for newsletter
- Purchase
- Fill form
- Book appointments
- Create a free account
- Download App/File
- Subscription
- Content share/engagement
These are some mostly used conversions by businesses. Whenever visitors come to the website, these are the call-to-actions that businesses add and use metrics to calculate the conversion rate.
Why is the Conversion Rate Important?
For businesses, conversion rate plays a major factor that helps them to identify the performance of their advertising campaigns and how many conversions they're getting through the campaign. With the conversion rate metric, you can figure out how many visitors are converted as customers on your website and where you're lacking to increase the conversion rate. These data help you to optimize your campaign and increase your conversion rate. It's a simple formula that is used to determine the conversion rate for any campaign and what are the changes required to optimize the campaign.
Conversion Rate gives businesses the right direction to determine whether they're putting efforts and money in the right direction and, if required, changes, then optimize the campaign and get better results.
Best Tools to Track Conversion Rate
To increase the conversion rate for your marketing campaigns, you need accurate data from previous running campaigns to use this metric and identify the conversion rate and the changes required in marketing campaigns to make them more effective. To get an accurate conversion rate, you can use tracking tools in marketing campaigns that keep an eye on visitors whenever they're doing activities on a website, store or landing page.
Here are some Top-rated tracking tools:
- Google Ads
- Google Analytics
- Facebook Ads
- Twitter Ads
- Pinterest Promotion
You can consider these tools to track visitors' activities while running your advertisement campaigns. Later, you can use this accurate data to determine the conversion rate for your campaign and how to optimize the campaign for better results.
Best Ways to Calculate Website or Campaign Conversion Rate
It's important for businesses to know the best ways to calculate website or campaign conversion rates. It helps them understand what works for them, the changes required and how to optimize the website or campaign conversion rate.
Whether running a website or campaign, conversion (or result) is different based on business requirements. Conversion can be a purchase, free trial, click, lead, engagement etc. So first, you need to define which type of conversion you want from the website or campaign and then pick a formula that helps you calculate the website or campaign conversion rate.
Once you've selected the result of your website or campaign, you can pick a conversion rate metric and apply it to your website or campaign. Let's see!
Conversion Rate = (Total number of conversions / Total number of visitors)*100
For example - If you're a software company and running an offer on your website for a free trial and around 1000 visitors view the offer on the website, and 200 visitors purchase the software, then you can use this formula:
Conversion Rate = (Total number of conversions / Total number of visitors)*100
Conversion rate = (200/1000)*100,
It means your website conversion rate is 20%.
Similarly, you can use this formula to identify the campaign conversion rate by identifying your campaign's result and then applying the Conversion Rate formula.
How to Increase your website or campaign conversion rate?
If you want to grow your business and increase conversion rate, then you make some major change that helps you catch customers' attention, generate qualified leads, and increase sales and conversions.
Here are some most effective ways to increase your website or campaign conversion rate:
1. Optimize your website/landing page
An attractive website or landing page is essential for any business to generate qualified leads and convert them into customers. With a landing page, promoting products or services is easy and encourages visitors to make buying decisions. You need to convert your simple website into a powerful, appealing, attractive one with call-to-actions, newsletter subscription, chatbot, etc., and increase the conversion rate.
2. Create Useful Blogs
Also, you can start writing useful and valuable blogs to provide valuable information to your potential customers and build trust for your brand. With blogging, you can generate potential customer traffic on your website that can convert into sales. It's the most effective and organic way to target potential customers and encourage them to make buying decisions faster.
3. Social media marketing
Billions of people are actively using social media platforms, and surely your potential customers. So if your potential customers are on social media, why are you not taking action to get in front of them and promote your Products/services. You need to build a strong presence on Facebook, follow Instagram, Twitter and YouTube to catch your customer's attention and encourage them to make buying decisions faster.
4. Email Marketing
To attract potential customers to your side and increase sales, email marketing is the most preferred marketing strategy that almost every business uses to attract customers, generate qualified leads, nurture leads and end up with more sales and conversions. Email marketing is a platform where he can consistently promote your products/services to potential customers and build trust towards your brand.
Email marketing is not a one-shot game; it's the process of catching customers' attention, generating qualified leads, nurturing leads and ending up with more sales.
5. Referrals
Referrals are a traditional but powerful strategy to increase sales and conversions. If you have a group of previous clients who got benefits after using your products and services, you can ask them to refer your products & services to other needy people. There's unlimited potential for using this marketing strategy and growing your business.
6. A/B Testing
A/B Testing is a must-have marketing strategy that increases sales and optimizes your marketing campaigns. With A/B testing, you can find out what works and brings results and what you need to change in your campaign or website to get better results. If you want to optimize your website or campaign, then you need to create two websites or campaigns together and run them for some time. Later you can compare both websites or campaigns together and see which gives better results and what are the changes required in campaigns or websites to increase sales and conversions.
7. Social Proof Notifications
Social proof notifications are in-demand nowadays, and many businesses use this strategy to increase sales and conversions. Social proof notifications are attractive pop-up notifications that you can display on your website and catch customers' attention and encourage them to take similar actions as others are taking. You can use these attractive pop-up notifications on eCommerce stores, landing pages and websites and increase your chances of converting visitors into customers. If you're planning to add social proof notifications on your website, create a free account in WiserNotify and display pop-up notifications on your website. WiserNotify is the #1 best social proof notifications platform that supports 250+ platforms, including WordPress, Landing Page builders and email marketing tools where you can use WiserNotify pop-up notifications and increase sales and conversions.
Conclusion
Conversion Rate is the most important metric for any business to analyze the performance of their website and campaigns and make the right decisions to grow their business. Conversion Rate helps businesses identify what works for their business and what requires changes in their website or campaigns to get desired results.
