How to estimate your internet conversion rate?

How to calculate web metrics. Teacher at blackboard.

This article teaches you how to compute your conversion rate. Calculating your website’s conversion rate is a first step to accomplishing your online objectives. Typically, retail websites exclusively consider a purchase to be a conversion. However, what you consider a conversion may differ, depending on your goals.

The conversion rate equation

Web Site Conversion Rate = Number of Visitors who Take a Desired Action / Total Number of Visitors on Your Website

The above equation is simple. The trick is identifying what your desired actions are and knowing when to measure that the goal has been met.

What is a Conversion?

Now for some nomenclature. A visitor is considered converted whenever he takes a desired action on your website. Google calls desired actions your website’s goals.

The following are examples of goals:

  • User registers for your newsletter.
  • Customer buys a book from your website.
  • Reader emails your article to a friend.

Tracking your Conversions

How do you know that one of the above goals has been hit? Google’s approach is to track when a user views one of your confirmation pages after a desired action is completed.

For example, if a visitor has registered for your online newsletter, you might have a Thank you page that thanks the user for registering. Google would suggest you then measure your goal as being successfully reached whenever a visitor sees your Thank you page.

Similarly, if a user is buying a product from your website, you would measure success, not when the user adds an item to his shopping cart, but when you display the purchase receipt to the customer.

Read more about Google Goal Conversion and how to set it up for your website.

Putting It All Together

So in the above examples, the number of times visitors view your Thank you page or the number of times visitors hit your purchase receipt page would make up the top part of the conversion equation (e.g. the number of visitors who take a desired action).

The bottom part of the conversion equation is simply the total number of unique visitors to your website.

Do you have any follow-up questions about how to calculate your website’s conversion rate?


    Related Articles
  • Vertster.com. 2008. « How to Calculate your Conversion Rate. »
  • Clickz.com. July 25, 2005. »Calculate Your Conversion Rates. »
  • ImpactMedia 2008 « How to Calculate Conversion Rates? »
  • FutureNowInc : « A conversion Rate Calculator »
  • Managing E-commerce : An example of conversion rate