What Is a Conversion Ratio?

What Is a Conversion Ratio?

By Charles Joseph | Editor, Financial Affairs
Reviewed by Corey Michael | Senior Financial Analyst

A conversion ratio simply refers to the number of times website visitors complete a desired action on your site compared to the total number of site visitors. These desired actions can vary depending on a company’s marketing goals, but they typically include things like making purchases, signing up for email newsletters, filling out contact forms, or downloading resources. The conversion ratio is calculated by dividing the number of conversions by the total number of visitors, then multiplying the result by 100. The higher the ratio, the better an indication that your website is effective in its aim.

Related Questions

1. How can I improve my website’s conversion ratio?

Understanding your audience, optimizing your website’s design for user experience, and creating persuasive and targeted content are key ways to improve your conversion ratio. Furthermore, using well-placed call-to-actions and conducting regular A/B testing can also enhance your conversion rates.

2. What’s a good conversion ratio to aim for?

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While the ideal conversion ratio varies by industry and type of conversion, a good benchmark to aim for is between 2% to 5%.

3. Is it better to have a high number of website visitors or a higher conversion ratio?

While having a high number of visitors is good for brand visibility, a higher conversion ratio often provides more value as it means more visitors are taking desired actions like purchasing products or signing up for newsletters.

4. What’s the difference between conversion rate and conversion ratio?

Conversion rate and conversion ratio are basically the same. Both measure the percentage of visitors who take a desired action on your website versus the total number of visitors.

5. How does SEO relate to conversion ratio?

SEO can directly impact your website’s conversion ratio. By optimizing for relevant keywords, improving website speed, and ensuring your site is mobile-friendly, you can attract more qualified traffic, which in turn can increase your conversion ratio.