Friday, October 30, 2009

What is Web Conversion Rate and How Do You Get That Number?

Website conversion rate is a mathematical formula that compares the incoming traffic to the number of sales during a specified time period. In most terms it is how many customers purchased compared to how many people were sent to your website. An average rate is 1%.

The rate is not just about sales, it also is used for landing pages, squeeze pages, email sign up pages, affiliate landing page, and any other web page that gets traffic. And remember, each of your web pages will have a different website conversion rate.

One easy way to find out what your rate is, is to gather data from your pay per click advertising campaigns, then look at your sales (number of customers) or email sign up numbers. You will need to pick a start and end date for both your sales and PPC campaigns to have your number come out correctly.

You should try a 1 or 2 week time frame at first. Look at your stats for your PPC campaign for that time frame, then get the number of customers, or email sign ups, during that same time period. You should be able to get this number from PayPal, Clickbank, your email autoresponder, or your other accounts. You now should have 2 numbers, number of PPC clicks and number of sales (or email sign ups).


Now for the easy math, and yes a calculator will help. Take your sales number times 100 = then divide that number by your PPC number. Your resulting number is your conversion rate (already in %). This is how the math is written out: sales * 100 / PPC = conversion rate in %.

For example, if you chose a 2 week period from the 1st to the the 15th, and if you had 50 customers (or sign ups), and you paid for 1,000 clicks, your conversion rate would be 5%. The math would look like this: (50 * 100 )/1,000 = 5 %). Another example, if you paid for 10,000 clicks and you had 100 customers, your conversion rate would be a 1% rate and the math would look like this: (100 * 100 ) / 10,000 = 1 %).

Now that you know what website conversion rate is and how to get your own numbers, your next step is to discover how to increase your rate. When you increase your rate, you increase your sales without increasing your traffic expenses.


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1 comments:

web conversion rate said...

Thanks for this explanation of one of the most important terms in the websites optimization. After understanding of what Web conversion rate means one should ask the the most essential question: how to increase it and to get more profits from the website.

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