Conversion Rate Calculator

How to Use Our Conversion Rate Calculator

You spend a lot of time, funds, and effort in your digital marketing. Wouldn’t it be nice to know how effective your efforts are beyond the amount of revenue you generate? That’s where conversion rate tracking comes in.

The truth is, sales and revenue don’t tell the full story. Your marketing campaign might bring in a small amount of revenue yet still be wildly successful. How so? It has to do with the percentage of people who took you up on your offer.

Our conversion rate calculator helps you get the bigger picture. Just input the total number of visitors in a given campaign and the total number of orders you received during that campaign. You can grab this data from Google Analytics. Our conversion rate calculator will do the rest.

What Is Conversion Rate?

Conversion rate measures the percentage of people who complete a desired action. This could be anything from signing up for newsletters or lead magnets, making a purchase, downloading reports, or filling out forms.

To calculate conversion rate, divide the number of actions taken (conversions) by the total number of people who could have taken that action.

Essentially, conversion rate is a way for your company to see how well your marketing or website is at attracting the right customers.

Let’s start with an easy example. Say you have 100 landing page visitors and four of them made a purchase. Your conversion rate would be 4%.

In the real world, numbers aren’t always this clean and predictable. That’s why it’s helpful to use a conversion rate calculator. Use your own data to figure out how many visitors took a specific action. Leave the math to us.

Conversion Rate vs. ROI

Marketers use conversion rate alongside return on investment (ROI) to measure their marketing performance. These two metrics tell you different things, but together they help to measure your campaign performance.

• Conversion rate tells you how well your website or campaign convinces potential customers to take action.
• ROI measures the overall profitability of your marketing campaign relative to the cost of the campaign.

It’s also important to look at the return on investment for each campaign to decide if the time, effort, and money spent were worthwhile. You want to make more than you spend, but you also want to ensure you’re using your resources wisely to make the highest return on investment possible.

So while you might have a low conversion rate, your ROI might be high enough to justify your efforts. Likewise, a high conversion rate might not bring in the best ROI despite lots of people taking advantage of it. This is why it’s important to consider the big picture and not just a single metric.

What Conversion Rate Tells You

In addition to showing you how many total website visitors converted, conversion rate can tell you several other important things.

How Engaging Your Content Is

Looking beyond the raw numbers of conversions, conversion rate can indicate whether people found your site or content compelling and convincing. A high conversion rate shows you know your audience and made a strong connection with them. You can feel confident your website or app is doing a good job of engaging visitors and guiding them to the desired action.

Your Campaign’s Effectiveness

Conversion rates help you evaluate specific marketing campaigns. You can more easily tell which campaigns are successful in terms of getting customers to act. Use these insights to compare campaigns and find common denominators between your top-performing campaigns. 

Opportunities to Optimize Your Conversion Rate

Conversion rates can indicate potential problems in your funnel or campaign that you might not have known about before. Low conversions might have nothing to do with your offer and everything to do with the website experience, poor checkout processes, or unappetizing calls to action. When low conversions happen, retrace every step in your campaign to see if you can pinpoint issues that prevent customers from converting.

Potential Market Trends

Markets can change with the winds, and you might pick up on these changes by looking at conversion rate. For example, if you see an average of 5% CR but your last campaign only earned a 1% CR, this drop might suggest a new competitor has entered the market or your customers have changed their preferences.

Price Sensitivity

Running different promotions at different price points can help you understand how price sensitive your customers are. This intel will help you determine how you price your products and services strategically without deterring potential customers.

Your Brand’s Trustworthiness and Credibility

If you’re targeting new customers, conversion rate can reveal how trustworthy you appear. It’s not uncommon for new customers to avoid converting on the first visit, which means your conversion rates might be low in these campaigns. Compare conversion rate for these campaigns to those that target existing or former customers to drr how trustworthy and credible your brand appears to others.

Why Conversion Rate Matters in Marketing

When you know a campaign’s conversion rate, you can improve your future marketing campaigns. Let’s look at some ways conversion rate matters in marketing.

Optimize Your Marketing Budget

Using marketing data like conversion rates is all about learning from your past efforts so you can improve future campaigns. Seeing how well a campaign converted will help you decide how to use your marketing budget and avoid wasting funds on underperforming campaigns.

Invest in Conversion Rate Optimization to Improve ROI

Knowing your baseline conversion rates sets a baseline for conversion rate testing and optimization. You can compare conversion rates over time to see how your future efforts improve your outcomes.

Gain Valuable Customer Insights

Conversion rates give you a direct line of sight into your customers’ needs, wants, pain points, and preferences. You can analyze what converts and identify what doesn’t, which can help you develop new products, price your products accordingly, and create content that helps you win more business.

What Is Considered a Good Conversion Rate?

Average conversion rates can vary by business, channel, and industry. On average, a good conversion rate ranges between 2% and 5%. 

These averages should be taken lightly, as some businesses may see a substantially higher conversion rate as their normal.

Let’s compare the average conversion rates for different channels:

• Amazon: 10%
• Paid ads: 2.35%
• Facebook ads: 9.21%
• Instagram micro-influencers: 1.1%

This isn’t an exhaustive list, but it does illustrate how much conversion rates can vary.

You’ll also need to consider what you’re selling and how much it costs. It’s a lot easier to say yes to purchases that cost $10 compared to a service that costs $10K per year. 

If your conversion rate falls near the average for your industry or channel, don’t think you’ve reached peak performance. There’s always room for improvement, so continue prioritizing conversion rate optimization techniques to get even better results.

7 Ways to Improve Your Conversion Rate

Conversion rate optimization is the process of tweaking your campaign to boost the number of conversions. Let’s review some tips that can help you get more people to convert.

• Keep the conversion process simple and easy to complete.
• Focus on one call to action to avoid confusion.
• Regularly A/B test elements like headlines, CTAs, images, and layouts to figure out what converts the best.
• Optimize your website for the mobile user.
• Include testimonials, reviews, and other social proof to build trust and credibility.
• Offer free trials and guarantees to make purchases less risky to the customer.
• Implement retargeting campaigns to keep the conversation going if the customer doesn’t convert the first time.

Keep track of your conversion rate optimization process with our free conversion rate calculator – try it now!