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What is conversion and how to correctly calculate it?

Conversion is an important concept in marketing. It gives an assessment of the effectiveness of the advertising campaign, displays the number of visitors who completed the targeted action on the site. Counting this parameter allows you to analyze the level of sales and find ways to increase it.

What is conversion?
Site conversion is an indicator of the ratio of the number of page visitors to the number of people who completed the target action (leaving their personal data, ordering a product or service).

To correctly evaluate the parameter, it is recommended to configure the analysis tool and select the page to which the lead goes after the implementation of the target action. In online stores, she usually appears the page “Thank you for the order!”. You can track the number of views of materials, clicks on the link, file downloads.

Calculation of site conversion is carried out according to the following algorithm:

Conversion formula
Conversion Calculator Formula
The result obtained means the indicator of the transformation of leads into real buyers. The conversion calculation formula works as follows. For example, 250 people visited the site in one day. Of these, only 10 completed the target action (they added the product to the basket, made a purchase, looked at the proposed materials). The conversion in this case is 4%.

What are the types of conversions
There are two types of sales conversion in marketing.

Micro conversion
These are intermediate steps that the user goes through before completing the target action. These include newsletter subscriptions, navigation to specific pages, user manual downloads, and other similar activities.

Macro conversion
These are actions that relate to the main target – placing an order, registering on the site, calling or using the feedback form.

Tracking the activity of site visitors and its assessment helps to see the vulnerabilities of a web resource. You need to calculate the indicator in order to determine how the micro-conversion is converted to macro-conversion, and increase sales levels.

What conversion options are considered good?
A good conversion in sales is considered to be at least 1% of buyers of the total number of website visitors. If the number of calls is taken into account when calculating the parameter, then it should be at least 3%. This is averaged data that depends on the product.

According to the analysis of the Data Insight publishing agency, the first line in the Russian TOP of conversion products is occupied by food delivery services – 14.9%. Ticket sales for the event in second place – 7.9%, then bookstores – 3.6%, cosmetics – 3.2%.

Conversion rate is data that cannot be unified for Internet resources. For example, there were 500 visitors per day on the site, the conversion was 2% – which means that the target action was committed by 10 people. 4,000 people visited another site with the same theme, the conversion was 1%, and 40 people made a purchase. The second case shows the best sales result with less conversion.

It is impossible to say unequivocally that which is considered good according to one formula for calculating sales conversions. It is necessary to take into account the factors of profit, investment and sales efficiency.

For online stores, the average conversion range is from 0.5 to 14%. The scatter of data is associated with different areas of the trading floors, price category and number of visitors. This is the average number of leads that a particular niche is able to get.

In Russian business, industry averages are distributed this way.

Niche Conversion Average
Distribution of conversion indicators in the Russian market for different niches
The higher the cost of the goods, the lower the percentage can be considered successful. Sellers of expensive cars have a low conversion compared to sellers of household appliances, but their profit when buying a unit will be significantly higher.

What does website conversion depend on?
Website conversion rate depends on external and internal factors.

This is a set of actions whose purpose is to arouse the interest of visitors and attract them to the page. For this, the following mechanisms are used:

SEO-promotion on search engines is one of the effective ways to promote a site in search results and attract new customers;
Contextual advertising. A well-built campaign forms a person’s desire to perform a targeted action before he even gets to the site. You can use banner, teaser, media, contextual (in YAN and CCM), advertising on social networks. Not excluding traffic analysis from these sources.
These include all aspects of the site, which can affect the formation of the opinion of a potential buyer about the resource. These include:

design. This is the first thing the visitor sees. The design of the pages should be pleasant and unobtrusive, without an abundance of banners.

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