« Back to Glossary Index

Definition: It is the percentage of conversions per interaction on websites, ads, campaigns, etc.


In digital marketing, Conversion Rate is a very important metric for marketers since it is used to measure success.

It is calculated using the formula:

CVR = conversions / number of interactions x 100

For example, according to data, you had 50 conversions from 1800 interactions.

To determine the conversion rate, divide 50 by 1800, then multiply to 100.

The result would be 2.78%

How do you track conversions?

Conversion tracking can be done using Google Analytics (GA).

It is a platform that you can access for free, however, it can be a little tricky to use it for beginners.

Google Analytics also allows users to set conversion goals, which many will find very useful to get better results.

Another thing that makes the platform great is that gives you an in-depth overview of your performance.

All the information that you can get will help determine which channels need improvement and which ones don’t.

Data are also presented in graphs to make it easier to compare and contrast the different sources of traffic.

It’s a very useful tool for marketers who want to use freeware online.

What is a good conversion rate?

Good conversion rates are important since it puts all your marketing efforts worth it.

According to WordStream, the average conversion rate is around 2% to 5%.

If you’re getting more than 5%, then that’s good, but if you’re getting lower than that, then you need to do something about it.

Things that could affect conversion rate

Most people want to get more than 5% conversion rates, but if you want to achieve that goal in particular, then you should identify the factors that affect it.

While it’s no surprise that conversion rates aren’t always what you want them to be, there are some factors that you can and cannot control, so you better take note of these:

Brand Reputation

Let’s face it, the brand is what your prospects see the first thing and not the offer itself. Some people don’t want to interact with a particular brand for reasons that you might probably be unaware of. This is pretty hard to deal with since it’s beyond your control so make sure that you’re keeping your brand likable.

Season or Event

Seasons change and so do your campaigns. Whenever there’s an upcoming holiday, conversion rates are also being affected. For example, Christmas is just around the corner and if your campaigns are still the same, most people might think you’re some type of Grinch or something. Although this isn’t always necessary but seasonal trends can indeed, affect conversion rate.


We all know that people prefer to buy cheaper stuff online and it won’t hurt to spice it up with a sale, right? Sometimes products or services with unreasonable prices don’t make a sale, be extra careful on that.

Not strong CTA’s

If your call-to-actions are too weak to get a prospect to interact, conversion rates can get affected too. Think about it, big companies always add a CTA in their campaigns. “Call +12345678 to Buy Now!” “Click here to buy now”

Customer Service

Customers will always ask for information about your product or services. If your sales representative isn’t responsive, that’s already considered a huge loss because you weren’t able to them out and close the deal. This is one of the reasons why there are autoresponders, chatbots, etc.

SEO Performance

Your performance on search engines could also affect conversion rates. Search engine optimization is done to rank higher and get organic traffic. Affiliate marketers use this method to get more traffic and get a good amount of conversions over time. So if your goal is to get more people to convert, try checking your performance on search engines

Complexity of Transaction

You want to get the product but the process is taking much longer, what do you do? You switch to an alternative. Put yourself in your prospect’s shoes and see if it goes smoother for you. Transactions that take too long to complete will only make your campaigns less effective, thus resulting to lower conversion rates.

How do you optimize conversion rates?

Conversion rate optimization is a method of increasing conversion rates to get better results.

It can be done through:

  • Split Testing, which is testing two different versions to identify which one is more effective.
  • User behavior analysis, by observing how your audience interacts with your campaigns.
  • Competitor analysis, by looking at your competitor’s strategies and comparing them to yours.
  • Identifying funnel leaks, to ensure that the stages in your sales funnel aren’t scaring people away.

The good thing about conversion rate optimization is that you can lower your costs to acquire visitors/customers.

If you can use this method for your business, then you can definitely get higher than 5%.

« Back to Glossary Index
Skip to content