How Do You Calculate A Website’s Conversion Rate?
The conversion rate, or CRO as it’s commonly referred to, is the percentage of visitors who take the desired action on your website. It’s one of the most important metrics in digital marketing because it can help you determine what pages are performing well and which ones need improvement. There are two ways to calculate conversion rates: by dividing total conversions by sessions or by dividing total revenue by sessions. In either case, there are many factors that affect how accurate these calculations will be—and you’ll want to take them into consideration when interpreting your results.
Calculating Conversion Rates By Dividing Total Conversions By Sessions
You can calculate conversion rates by dividing total conversions by sessions. This is one of the simplest ways to estimate your website’s conversion rate, but it won’t be accurate because it doesn’t take into account things like invalid traffic or nonexistent pages on your site that aren’t counted as sessions and convert. You’ll also only know about people who completed the desired action, not those who attempted a task that didn’t work out for them.
Calculating Conversion Rates By Dividing Total Revenue By Sessions
To get an estimated CRO more reflective of what’s actually happening on your site, you might want to divide total revenue by sessions instead. Although this method will include all types of visits from users—those who complete the desired action and those who don’t—you’ll still need to take into account possible inaccuracies, like incomplete purchases or people that make multiple transactions but are counted only once.
To estimate your website’s conversion rate by dividing total revenue by sessions:
- Add up the gross revenue generated from all traffic on your site in a given period of time (the past 30 days, for example)
- Divide this number by the number of visits during that same timeframe
The resulting percentage is your estimated CRO. While you won’t be guaranteed an accurate figure with either method, using this process will give you more representative results than simply dividing total conversions by session because it takes other factors into consideration.
Here are a few ideas for how to use this metric to improve your website:
- Understand which pages on the site do better than others. For instance, maybe you want to test out different headlines on your landing page or experiment with more visuals in an attempt to capture people’s attention and convert them into customers. You can also look at other data from Google Analytics like bounce rates (the percentage of visits that don’t go beyond one page). Perhaps users who visit multiple pages before leaving have a higher chance of converting if they come across something they’re interested in while consuming content.
- See where there might be room for improvement based on analytics reports generated automatically by Google Analytics about specific areas–such as new visitor conversion rate or conversion rate by source–and use this information to optimize your website and get more sales.
- Try out a CRO calculator like the one we’ve provided on our blog as an alternative way of estimating what percentage of visitors convert into customers, which might be a better representation if you have less than average traffic or are measuring across different ranges of time (e.g., last month vs. all months in 2017).
- Track how changes affect conversions for specific pages over time so that you can continue making tweaks until it’s optimized for conversion rates. The ROI will depend largely on the nature of your business but incremental improvements made to any page with a low CRO should start to pay off pretty quickly after only a few modifications!
If you are looking to improve your website’s conversion rate, it is important that you start by calculating the number of visitors and conversions. Doing this gives you a better understanding of what is going on with your site traffic in order to pinpoint any potential problems or areas for improvement. There are many different ways to calculate these numbers, but we have found Google Analytics provides an easy way to do so without having any coding experience. Let us know if there’s anything else we can help with!