How Can I Calculate My Conversion Rate?
How do I Track My Conversion Rate?
Conversion Rate Industry Benchmarks 2022
What is Conversion Rate Optimization (CRO)?
No matter what kind of business you run (online or physical store), it's important to monitor and optimize your conversion rate. Without solid conversion rates, you can drive all the traffic in the world to your business but you're still not going to achieve the growth you desire.
Now you might be asking: What is a conversion rate? What is a good conversion rate for my particular industry or business? How does my conversion rate compare to other businesses? How do I improve it?
Simply put, we can define conversion rates as the total number of users who buy a product or service from your company divided by the total number of visitors to your store, website, or mobile app.
Conversion rates and how you calculate them will differ depending on your business, where and how you track conversions, and ultimately your goals. If you run an eCommerce site, you should be extremely focused on the percentage of visitors who buy a product. The direct to consumer eCommerce shoe giant, All Birds would love if you signed up for their newsletter but at the end of the day, they want to sell you a pair of shoes.
Alternatively for SaaS businesses conversion rates can refer to a few things, but usually, it refers to the percentage of trail users that become paying users. When someone signs up for a Sturppy 14-Day Free Trial, we aim to blow them away by our customer service and power of the platform so that when the trial runs out, upgrading to our Starter or Pro plan becomes a no-brainer.
Here's the formula → Conversion Rate = Total number of conversions / Total number of visitors * 100. For example, if you run a lemonade stand and 50 people buy a glass of lemonade from 1,000 people who stop by your stand, your conversion rate would be 5%, since 50 / 1,000 = 5%.
Simple enough right?
Again, tracking conversion rates is going to differ from business to business. The easiest conversion rates to track are for businesses that operate online (SaaS, eCommerce, etc.).
The most accessible free way to track conversion rates for your website or online store is to use Google Analytics. If you don't already have Google Analytics setup for your business on your website, I'd suggest you invest a little time and do it. There are a ton of benefits of having Google Analytics installed beyond just tracking conversion rates.
Here's a helpful article and a YouTube video if you're just getting started and want to setup Google Analytics.
Comparing your own conversion rates to industry benchmarks allows you to understand whether your performance is up to par or if there's room for improvements. The below conversion rates come from a 2021 study from our friends over at Ruler Analytics.
Conversion Rate Optimization (CRO) is the practice of increasing the percentage of users who perform a desired action on a website. Desired actions can include purchasing a product, clicking "add to cart", signing up for a service, filling out a form, or clicking on a link.