Conversion rate (CVR)

Conversion rate is one of the most valuable metrics to measure your marketing efforts’ performance and see if you are heading in the right direction. The Conversion Rate is the percentage of customers that complete the desired goal. Depending on your overall business goals, this could mean making a purchase, signing up for the newsletter, using an online chat, creating an account, or downloading your lead magnet. The more people that perform the desired action, the higher your conversion rate is. There are many ways customers can interact with your content, but not every activity is considered a conversion. For example, if you run an e-mail campaign and want to see how effective your e-mails are, you can measure how many people click on the e-mail link and get to your website. However, make sure to describe the e-mail clicks as click-through-rate rather than conversion rate. See the conversion rate as the final goal a customer should achieve.

If we think of the e-mail example, the conversion rate could describe the number of people who open the e-mail, click on the link to your website, and download the free gift you offer on your website. This will give you better insights into your metrics than considering every step of the user journey as a conversion.

How to calculate conversion rate
To calculate, for example, your website’s conversion rate, divide the total number of conversions by the total number of sessions.

Conversion rate = Total number of conversions / Total number of sessions

For instance, if you offer a free gift on your website and 200 people downloaded the offering, while 400 people visited your page, your conversion rate is 50% (200 / 400 * 100)

How to increase your conversion rate
Depending on your goals, there are different ways to increase your conversion rate. Always ask yourself what the desired goal is that your customers have and how you can help them achieve their goals.

How to increase the conversion rate for your website:
• Use trust signs (testimonials)
• Design engaging call to action buttons
• Remove any unnecessary cluster
• Make sure you communicate your value
• Use wording that your customers resonate with
• Make your website mobile responsive
• Make it easy for your customers to reach their desired goal

How to increase the conversion rate for e-mails:
• Make e-mails personal
• Communicate benefits, not features
• Time e-mails based on customer behavior
• Give every e-mail a clear call to action

Does that look Greek to you? Do you need help with your Product, Strategy or Business? I can help, lets talk!