What is meant by Conversion Rate? Its significance and how to boost conversion rate and FAQs.

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conversion rate

Table of contents:-


What is meant by Conversion Rate?

The conversion rate is a metric that reflects how much of the visitors from the web traffic on a website have actually performed the desired action. A conversion is an event where a visitor on a website performs an action desired by a web designer. 

Examples of Conversion 

  • Buying something from the website. 
  • Downloading the company’s software app from the website. 
  • Purchasing a subscription. 
  • Sign up to make an account or register on the site. 
  • Engagement with the business through chat or call.

Calculation of conversion rate is simple, you have to divide the conversions by the number of visitors for a given time period and multiply this ratio by 100 to obtain a percentage.

For example, a certain free article on a magazine website gets 500 visitors in a month. Out of these visitors, 50 subscribe for full access through paid subscription which was the magazine’s desired outcome. Now, the conversion rate will be said to be 10%. 

Conversion rate types 

  • Overall conversion rate- overall traffic conversion.
  • Marketing channel conversion rate- conversion of ads traffic.
  • Page-level conversion rate- conversion based on webpages.
  • Campaign conversion rate- promotional campaign related conversion. 
  • Individual ad conversion rate- which ads convert more than others.
  • Keyword conversion rate- certain words on the webpage that enhances the SEO. So we are dealing with the conversion through these keywords. 

Significance of Conversion Rate

Online marketing and promotion are based on content that is fed to the consumer. Sometimes it’s the content that is the ultimate product or the item that is to be sold. But most often it is a promotional hook that is used to attract potential customers to buy a product or service, which is then offered with the content. So the conversion rate is the metric that will indicate the success or failure of the promotional activity. 

For example, a company sells computer programming language tutorials and also runs a website where they publish articles and blogs that describe various coding-related terminologies and methods for free. Now the success or goal of the company regarding the content on the site is to have maximum students enroll or buy their product. This success can be measured by the conversion rate. 

It shall also be observed that conversion rate helps to determine the level of success or failure by comparing with the estimated conversion rates. 

Conversion rate tells a web designer what kind of design is working or not and is the content is powerful enough to make the readers take the desired action. 

From the advertisement perspective, the conversion rate is the one of most practically important data to be considered while selecting any website or internet platform to put up the advertisement. 

It helps in decision-making on investments related to online marketing. 

How to boost the Conversion Rate?

As we have learned that conversion and traffic generation are two different things therefore when the aim is to boost up the conversion rate it is necessary to focus on the product that is being offered on the platform. 

To reach a higher conversion rate first of all it is needed to analyze and critique the current status of conversion. 

Two major ways to increase conversion rate are: 

  • Provide the best offer and value proposition: More and more visitors can be gained but what matters the most is how much of them goes on to act in the desired way. This has to do with the offer that is being made with the visitor. Are they gaining the best value in return for their actions? This includes pricing, quality, user’s needs and the solution being offered. 
  • Improve and optimise the website: Apart from the product features, a good UI, UX design is also a vital asset in the conversion process on a website. It should convey the benefits of performing a certain action or buying a product from the website. Make use of colour tools, design methods and SEO tools. 


Q: What does the conversion rate tell? 

A: It tells about the percentage of visitors among the total traffic that actually performed a certain desired action.

Q: How to calculate conversion rate? 

A: Divide the number of conversions by the total number of visitors over a period of time and multiply it by a hundred. 

Q: What is a conversion?

A: The event where a visitor goes on to perform an action that is desired by the business. The action can be purchasing, subscribing, sign up, like or share, etc. 

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