Conversion rate tells you what percentage of visitors take the desired action. If two out of a hundred people place an order, your conversion rate is two per cent. Typical Czech online shops range roughly between one and three per cent.
Calculating conversion rate
Conversion rate is calculated as the ratio of conversions to visitors and is expressed as a percentage. The formula is: (Number of conversions / Number of visitors) * 100. For example, if a website has 1,000 visitors and 50 of them buy something, the conversion rate will be 5%.
Why conversion rate matters
Conversion rate is directly linked to website performance. The higher the conversion rate, the more successful the website is at meeting its goals. This metric is directly related to the effectiveness of marketing campaigns, which makes it very important for online marketing, e-commerce and websites in general.
Factors affecting conversion rate
Conversion rate is affected by many factors, from those you cannot control (such as seasonality, trends or competitors’ promotions) to those you can: a high-quality user experience (UX), search engine optimisation (SEO) and paid traffic. Some key factors include:
How to increase your conversion rate
You can increase your conversion rate through various strategies and optimisations. Some of them include:
Using conversion rate in practice
Conversion rate is a key metric for evaluating the success of marketing activities. You can track it with tools such as Google Analytics, which lets you monitor the number of conversions and visitors and calculate the conversion rate.
Related terms
Conversion rate in a nutshell
Conversion rate is an essential metric for online marketing and e-commerce. Understanding and tracking it properly lets you optimise your website and marketing campaigns to make them as effective as possible. The higher the conversion rate, the more successful the website is at meeting its goals. That is why it is important to track and analyse conversion rate regularly, so you can identify areas for improvement and thereby increase the effectiveness of your marketing activities.
How to find conversion rate step by step
The formula is simple, but the result is only useful if you decide a few things before you calculate it. Follow these steps so that your numbers stay consistent from month to month.
- Define the conversion: Choose one specific action, such as a completed order, a submitted form or a newsletter sign-up. Calculate each goal separately.
- Pick the base: Decide whether you divide by visitors (users) or by visits (sessions). Both are valid, but they give different results, so always use the same one.
- Set the time period: Use the same period for conversions and visitors, for example one full month.
- Narrow the scope if needed: You can calculate the rate for the whole website, one page or one traffic source.
- Divide and multiply by 100: Divide conversions by the base and express the result as a percentage.
For example, if an email campaign brings 4,000 visitors to your shop and 60 of them place an order, the conversion rate of that campaign is 1.5%. If your average order is worth $50, each visitor from that campaign brings you $0.75 on average. This helps you compare the rate with what the campaign costs.
What is a good conversion rate
There is no single number that counts as good for everyone. A rate that is excellent for one business can be weak for another, because it depends on what you ask people to do and who comes to your website.
- Landing pages: A page built around one offer and one call to action usually converts better than a general website, because visitors arrive with a clear intention and have fewer distractions.
- Online shops: Purchases require more commitment than a free download, so rates tend to be lower. Expensive products and long buying decisions lower them further.
- Lead generation websites: A free consultation or a simple contact form is easier to complete than a payment, so these goals often reach higher rates.
The most reliable benchmark is your own history. Compare the rate with the same period last year, with other pages on your website and with individual traffic sources. A steady improvement over time tells you more than any industry average.
Common mistakes when measuring conversion rate
- Mixing users and sessions: Switching the base between reports makes the rate look higher or lower without any real change.
- Combining different goals: Adding orders and newsletter sign-ups into one number hides what is actually working.
- Ignoring unwanted traffic: Bots and internal visits from your own team inflate the number of visitors and lower the rate.
- Judging too early: A few days of data or a small number of visitors can give misleading results. Wait until you have enough data before you change anything.
- Chasing the rate alone: A higher rate is not always better. Deep discounts can raise it while lowering your profit, so watch revenue and order value too.
Frequently asked questions about conversion rate
What does conversion rate mean?
Conversion rate means the share of people who complete an action you want them to take, out of everyone who had the chance to do it. It is expressed as a percentage. The action can be a purchase, a form submission, a registration or any other goal you define.
What is conversion rate in marketing?
In marketing, conversion rate shows how well a campaign, channel or page turns its audience into customers or leads. You can measure it for ads, emails, social media posts or landing pages. It helps you decide where to spend your budget and which messages work best.
What is a website conversion rate?
A website conversion rate is the percentage of visitors to your whole website who complete a chosen goal. It gives you a general view of performance. For more useful insights, also measure it for individual pages and traffic sources.
What is the average conversion rate?
The average conversion rate varies widely by industry, product price, type of goal and traffic source, so a single average says little about your own business. Published averages also differ depending on how they were measured. Compare your rate with your own past results and with similar pages on your website instead.
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