What Is Conversion Rate?

In marketing, conversions refer to the moment when a user completes a desired action on your website. 

The action may vary and depends on your goals – but it usually includes purchase, registration, subscription for a newsletter, etc. 

The percentage of your website visitors that complete the desired action out of the total number of website visitors is the conversion rate.

But what is a good conversion rate?

Conversion rates vary widely across different businesses and industries. Usually, 2-5% is considered a reasonable rate but not for all companies. For some industries, the rate can easily exceed 10% or even more. 

However, conventional wisdom tells us that conversion rates remain low for high-priced products and services.

That’s why it is essential to do your research before analyzing your conversion rate. Look at the precedent set by others in your niche, and also compare conversion rates for different areas such as pizza delivery and luxury car shop to see where your business lies.

How To Calculate The Conversion Rate

It’s simple: the number of conversions should be divided by the total number of website visitors for a selected period of time. 

Here is the Conversion Rate formula:  

Conversion rate = (The Number of Conversions / The Total Number of Visitors )* 100%

For example, if we have 120 website visitors and 6 conversions were received, then the conversion rate will be calculated using the following formula: (6 ÷ 120) x100% = 5%

Factors That Affect the Conversion Rate

The conversion rate is influenced by several factors:

  • Offer
  • Website functionality and usability (your website should be optimized for mobile devices)
  • Competitive advantages (pricing, delivery terms, forms of payment, shipping)
  • The quality of website visitors (if you run advertising campaigns to find clients, check how well your audience targeting is configured)

How To Increase Your Conversion Rate

The conversion rate is affected by a combination of factors, each playing an important role in enhancing it. 
Below we will consider the most important of these factors so you can prioritize these according to the needs of your business. 

Properly Configured PPC Campaign 

If you run advertising campaigns, it’s time to monitor their performance and optimize them. 
What do we mean? Of course, each ad campaign has its own goals and results that depend on various factors, i.e., targeting options, offers, images, budget settings, etc. 

Well, let’s assume that we have analyzed your ad campaigns on Google Ads and realized that users follow the link from your ad but don’t make a purchase. Why? That’s the case because your ad is probably attracting a non-targeted audience, i.e., people who might not be interested in what you have to sell. Check audience targeting settings, maybe you missed something. Customize the advertising campaign in accordance with the interests of the target audience. 

Also, users do not purchase because of the ad/website page mismatch. The page on which the user lands after clicking on the ad must sufficiently correspond to the ad. For example, if you are advertising a particular dress, you must lead the user to a page where the user can buy this dress. That’s why it’s important to make sure your ads match your landing page.

Remarketing For Cart Abandoners and Website Visitors

This method also applies to ad campaigns.
Have you ever looked at some products on a website and left without making a purchase, but then almost everywhere you came across an ad with this product? This is remarketing

It lets advertisers catch the attention of their previous website visitors and remind them to make a purchase. A well-set remarketing campaign can significantly increase your conversion rate. 
Learn more about how to set up a retargeting campaign on Facebook in our tutorial. You may also like learning more about Google Ads remarketing.

Optimize Your Website For Conversions

Website conversion rate optimization involves a rather painstaking work on many of its elements. It is important not to miss a single detail and understand what exactly needs to be changed. 
The main tips that will help you to improve conversion rate are listed below:

  • The value proposition of your product should be clear for the customer. Try to make it clear on your website
  • A/B test different content and graphic elements on your site to see which ones drive more conversions. Test only one website element at a time – it could be a headline, a call to action, an image, etc.
  • Make sure your website is optimized for mobile devices
  • Grab customer’s attention with a strong CTA
  • Make sure that the potential customer can quickly contact you via chat or phone


In this article, we focused on the basic methods of working with the conversion rate and tried to explain why it is so essential to monitor and optimize this metric. We hope you find our tips on how to boost a conversion rate useful and are already applying them to your business.

Marketing Specialist