The conversion rate is the number of conversions divided by the total number of visitors. For example, if an e-commerce site receives 200 visits in a month and has 50 sales, that means for every visit there’s about 1 sale on average – this would be considered a 100% conversion rate! A conversion can refer to any desired action you want people to take with your business; it could mean buying something from our store or filling out one of our forms.
How do I calculate the conversion rate?
Conversion rates are calculated by taking the number of conversions and dividing that by the total interactions in order to determine how many people clicked on your ad. For example, if you had 50 conversions from 1,000 Facebook engagements during a set period of time (say two weeks), then just 5% of those who engaged with your advertisement converted into customers!
Conversion rates for advertisements can be determined through calculating the percentage rate between conversion numbers versus engagement counts over a certain duration. In this case study below we see an interaction ratio is 10:1 but only 2 out 27 converts which gives them a 20% conversion rate rather than their desired 100%.
What is a good conversion rate?
The conversion rate is the percentage of people who visit your website and then convert to buying. For example, if 50% of visitors buy something from you site after visiting it 10 times, that would be a 5-percentage point increase in conversions over the average industry standard (which usually ranges between 2%-4%).