How to Calculate Conversion Rate (CR)
Thursday, April 23, 2009
So are you wondering how to figure out your conversion rate? First let's define what conversion rate is. Conversion Rate (CR) is essentially the percentage of visitors who take a desired action. In internet marketing the "desired action" might be to make a purchase (or to subscribe to a newsletter, fill out a form, or become a member), which would be considered the conversion. So now that you understand the definition of Conversion Rate, here's how to calculate Conversion Rate.
The following is the basic formula for calculating Conversion Rate as a percent:
Conversion Rate = Total Conversions / Total Views * 100
Here's an example of how to determine a website sales Convesion Rate as a percent:
Conversion Rate = Number of Sales / Number of Visitors * 100
For example, lets say an e-Commerce website has 1000 unique visitors to their site, and has 20 of the people buy a product (20 sales), their website sales conversion rate would be 2%. So essentially, this means that 2 out of every 100 visitors to the site makes a purchase.