The conversion rate is the percentage that shows the relationship between the total number of users who visited a site and those who made a conversion. This can refer to a purchase, a click on an ad or a subscription, among others. We are going to tell you how it is calculated and, best of all, strategies to increase it!
Within digital marketing, the analysis and increase of the conversion rate is usually one of the most important objectives and a large part of the success of a business.
This is a relevant metric for almost any online profile: from content creators, brands that sell through their e-commerce, or professionals who advertise. Everyone should analyze their conversion rate to promote the growth of their projects.
Surely, if you are reading about this topic, it is because the time has come to take your business to the next level by increasing your billing levels. To professionalize and scale your brand, we recommend creating an online store: ¡!
Now yes! With your store created or about to launch, we are going to teach you what conversion and conversion rate are, how to measure it and the 9 key strategies to increase them.
What is conversion?
In the dictionary, conversion means transformation or change of something into something else. This idea of can be applied to opinions, thoughts or beliefs, among others.
In , it is directly related to actions that we want users to take, such as a like on a post or a click on a button. And why is it a conversion? Precisely because that action turns him into another (type of) user.
For example, if a person is browsing a blog and subscribes to it by providing their email to receive communications, they go from being a reader to a lead, that is, a potential client. This is a user especially interested in the product or service.
Similarly, when someone walks into a store they visited once but makes a purchase this time, they become a customer. If this process is repeated, it will be a customer loyal to the brand.
We already see, then, what conversion means: a key action within your marketing strategy that a user performs. This transforms him into a lead, a loyal follower within your social media community, a customer, and so on.
We can also understand the conversion as a progress within the funnel or . This is a diagram within digital marketing that illustrates the stages that a person goes through until they make a purchase.
It is usually divided into 3 phases. The top of the funnel relates to user attraction to the overall niche, the middle relates to brand consideration, and the bottom relates to conversion itself.
We already know what conversion is. Now we need to keep going until such time as we manage to achieve more . For this, we analyze how many of the people we are contacting actually carry out an action: here the conversion rate comes into play.
What is the conversion rate?
Conversion rate is a metric that indicates the percentage of website visitors who converted. This data gives us visibility on the relationship between the number of sales, interactions or subscriptions that we make and the total number of active users.
So, the CVR (Conversion Rate), an acronym that refers to conversion rates, is a relevant indicator when measuring the scope of the objectives of a marketing campaign.
In the case of an e-commerce, for example, the conversion rate is the percentage of visitors who made the purchase. Analyzing this data provides precision and will allow you to think of ideas and strategies more focused on increasing your sales.
In the next section we are going to show you how it is calculated but, to leave an advance, if a store had 1,000 monthly visits and 25 people made a purchase, the e-commerce conversion rate is 2.5%.
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The conversion rate is one of the main metrics to evaluate the success of a business since it directly affects the sales objective.
It is also a key piece of information to assess the performance of the page. Why? If your e-commerce converts a high percentage of visits, it means that the user experience in your online store is well designed towards a higher conversion.
How to calculate the conversion rate
The time has come to discover how the conversion rate is calculated to apply it to your online business. There are two ways to measure the conversion rate of your website.
1. General formula
In this case, all visits to a website (including those of the same user) are taken into account. The formula to calculate the conversion rate is:
(Number of conversions × 100%) / (Number of visits) = Conversion rate
This formula is a first advance, since the total number of visits includes those made by the same user. Although it is not the most exact option, it is a good way to get an approximation.
For example, an online store that sells fashion accessories got 10,000 total visits and 75 purchases in one month. The formula applied to know your conversion rate would be:
(75 × 100) / 10,000 = 0.75%
2. Advanced Formula
Our goal is to tell you how the conversion rate is calculated in the way that generates the most impact on your business. In order to obtain a more precise value than the previous one, unique visits (or visitors) are taken into account in the advanced formula.
In this way, each user who enters your online store is counted only once, even if they enter your store several times.
Let’s remember that the purpose of measuring the conversion rate is to understand how many of the people who entered your web page carried out the action that you are promoting. If the number of visits is 10 but, in truth, there were 2 users who entered because one entered 9 times before deciding on the purchase, the conversion rate drops and does not reflect accurate data.
The advanced formula for measuring conversion rate is as follows:
(Number of conversions × 100%) / (Number of unique visits) = Advanced Conversion Rate
To ensure that the number of unique visits obtained is correct, the website must use cookies (micro files that a web server sends to the hard drive of the visitor with information about their preferences and browsing patterns). This information identifies each user.
Also, in this calculation, a certain period of time is selected (for example, the dates of ) and only a conversion of the unique visits for that period is calculated. This is the option we recommend to have a more accurate measurement.
For example, an online store that sells bikes got 10,000 unique visitors on CyberMonday and sold 12 bikes. The formula will be:
(12 × 100) / 10,000 = 0.12%
⭐ Star resource! We already left this link above but, at this point, if you need to review how to obtain the number of visits, we invite you to read our guide on .
We already have more than clear what conversion means, its rates and how to calculate them. Now, what can we do with this number? Climb it! This way you will boost your business, increase income and . To get into the subject there is a key term that you have to know: CRO.
What is CRO?
Towards the beginning we mentioned another similar acronym: the CVR means, precisely, conversion rate in its English denomination. For its part, CRO stands for Conversion Rate Optimization, that is, the actions that we implement for its optimization or increase.
And how to improve the conversion rate? There are many CRO strategies that can be implemented, depending on the metric you are looking to raise (you can focus on sales, downloads, subscriptions, etc.) and your particular field.
Let’s get to know all the actions you can implement!
9 strategies to increase the conversion rate
To improve the conversion rate, it is essential that you thoroughly analyze various elements of your website or online store. In this section, we share the essential strategies to increase the conversion rate and boost your business.
1. Design the sales funnel for your business
We have already seen what the sales funnel means. The important thing is that, beyond theory, you can adapt this knowledge to your e-commerce site. For example, a product page is much closer to conversion (that is, at the bottom of the funnel) than an article on your blog.
By understanding the path that users take from when they start researching the niche, and when they get close to buying, you can think of more and better strategies to improve the conversion rate.
2. Write effective calls to action
The or calls to action are web elements that promote a certain conversion.
To give you some examples, the calls to action are, in general, buttons that promote purchases, downloads, form submissions, subscriptions, clicks on a category or section of your site, following a fan page, etc.
This is a key tool to drive your visitors to the action you want them to take. Since the conversion rate tends to drop when users have to complete too many steps, it is strategic that this button be as clear and simple as possible.
3. Use chatbots
Chatbots are computer programs based on artificial intelligence. Their main feature is that they start conversations in a proactive and automated way with the visitors of your websites with the aim of assisting them with their queries.
They are aimed at clarifying doubts and optimizing customer service with the aim of providing a pleasant shopping experience and guiding them towards conversion.
4. Improve user experience
Aspects such as usability, simplicity and are differential to achieve consumer satisfaction and must work both on desktop (computers) and mobile (cell phones). Brands must pay attention to generating a friendly interface, a simple, practical process that responds to the immediacy of these times.
Designing a quality one will facilitate an intuitive purchasing process and increase the chances of selling. The user will even be much more likely to recommend your store to others and come back for more!
For example, the ability to deliver an amazing user experience helped the Chinese e-commerce giant improve conversions for new users across all browsers by 104% and on iOS by 82%.
5. Optimize the pages with the highest traffic and/or conversion
The sections of your website that are most visited or those that correspond to the bottom of the sales funnel are key areas. In these places you have the greatest chances of improving your content, calls to action, designs and everything that you create convincing for your (ideal client).
On the other hand, you can also carry out actions with the aim that the position of your website stands out in the…
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