Site conversion: what is it, how calculate it and increase it? Formula and Unit of Measure
The quality of the site and level of literacy of specialists’ efforts aimed at its promotion can be determined by various indicators: for example, by analyzing the number of visits for a certain period.
But many of the analysis parameters by themselves tell little about it. They are informative when combined with other data. To determine effectiveness, it is always better to start from the goals and achieve the result. In this case, we need to calculate the conversion rate, which we will discuss in detail in this article.
- What is website conversion: concept and calculation procedure Conversion rate in Google Analytics and Yandex Metrics
- How to understand if your site has a reasonable conversion rate?
- How to increase site conversion
What is site conversion: concept and calculation procedure
Conversion is an indicator of the effectiveness of a resource in terms of motivating users to take targeted action. Improving the site is more effective if more clients, who visited the site, made a purchase, watched a video, went to a specific page, or any other targeted action. Tracking website conversions is a necessary part of website optimization work. Otherwise, it is impossible to determine the benefit from the functioning of the resource and each of its elements.
Nevertheless, we create a site for some specific purpose. The number of visitors in itself, of course, says a lot, but it is hardly the main task. Most likely, an online store is created not for 5000 users to visit it but for visitors to make X purchases or spend Y money on them. Likewise with service sites. In this case, a conversion is a perfect purchase, making a payment, etc.
We figured out what website conversion means. It remains to figure out how to calculate it and put it into figures for the convenience of using the data obtained.
How to Calculate a Site’s Conversion Rate: Formula and Unit of Measure
To measure effectiveness, it is not enough to know the number of conversions. The absolute figure can only be used for comparison. Therefore, we need to use a calculated parameter – the conversion rate, which contains the total number of site visitors and the number of targeted actions, the share of which will determine the effectiveness. The parameter is measured as a percentage and is calculated by the formula: Number of targeted actions/number of site visitors * 100
We should mention that the data is taken for the same period. The formula is straightforward. It is convenient to use it in practice. For example, during one day, the site was visited by 1200 users, of whom 29 people made a purchase. Find the conversion rate: 29/1200 * 100 = 2.42%. Similarly, you can calculate the conversion for each of the traffic sources or a separate element of the site, such as a banner or a button. Full-fledged analytics must take into account the conversion of sites. Therefore, analytics services include this indicator and independently calculate it, providing information in the reporting data. Let’s get acquainted with how this moment is implemented in the most popular services from Google and Yandex.
The conversion rate in Google Analytics and Yandex Metrica
Both services are convenient tools for analyzing the functioning of sites and mobile applications that collect information using the counter codes installed on the site, store data in the system, and generate various reports on their basis. Of course, they have many differences, but the principle of operation and the statistics provided are similar.
For the service to calculate the conversion rate, it needs to take into account two metrics. With one of them, everything is more or less clear – this is the total number of unique visitors to the resource for the estimated period. But how to set a specific target action of interest to us in the formula and force Google Analytics or Yandex Metrica to calculate this action and insert it into the formula? Services cope with this task using a special tool called Objectives.
To calculate the conversion rate, the following types of goals are used in Google Analytics:
- a page, a visit to which counts as a goal (for example, a visit to the “Thank you for your purchase” page or a shopping cart);
- the specified length of time on the site (often used when evaluating a blog or information portal); a certain number of pages viewed per visit;
- an event, the achievement of which is considered a goal (click on the “Make a payment” button, subscribe to the newsletter, register on the site).
Google Analytics offers to use goal templates, and you can also set your goal parameters, the achievement of which will appear in the numerator when calculating the conversion rate.
In Yandex Metric, goals are also represented by 4 types of conditions:
- the number of pages viewed during one visit;
- visiting a specific landing page of a resource;
- sequential execution of several specific actions, which is a condition of a composite goal (may coincide with a sales funnel).
Considering that several goals can be set for the site at once, the conversion rate will be calculated for each of them. It will allow you to evaluate each element’s effectiveness and correct those that do not reach the desired results.
How do you know if your site has a good conversion rate?
It’s great to understand what percentage of our website visitors make the cherished targeted action and add points to the conversion bank. But one number is not enough. It is necessary to understand whether the result obtained is outstanding or leaves much to be desired and requires immediate intervention to correct the situation.
There is no normal or even average conversion rate for a website. This figure and its estimate depend on many factors. This is the site type site, the nature of the target audience, and even the price niche of the products sold. But it does not mean that you will not be able to independently determine whether you are satisfied with the received indicator or not. You just need to take into account the tasks set for the business, the website, and each targeted action that we expect from users.
Let’s say we get 150 visitors to the site per week through advertising impressions. Of these, 12 people became buyers. We get a conversion rate of 8%. In this case, we can estimate the value of this 8% conversion in terms of the amount received from buyers and the costs required to acquire them, plus the cost of production. If there is no profit or negligible, then the conversion rate of 8% is too low. If the benefits are clear, then 8% is a great result worth repeating. In any case, the higher the conversion rate, the better. After all, it shows that you managed not only to attract a crowd of visitors but acted so purposefully and competently that you interested precisely those people who are interested in your proposal. Therefore, it is natural to want to understand what to do to make the conversion rate higher.
How to increase the conversion of the site
Although there are no exact guidelines for assessing the size of the coefficient, which can be considered good, there are quite understandable and very effective ways to increase it.
A positive impact on the conversion rate of the site is provided by:
- Effective work to attract the target audience The task of SEO specialists, targetologists, and marketers are to attract not everyone in a row, but those users who are interested in your offer, products, and information posted on the site.
- Creation of adequate conditions for cooperation The proposal must meet the needs and capabilities of the target audience. Overpriced or understated prices, non-competitive terms of cooperation, insufficient quality products, and other factors can scare off the bulk of visitors.
- Good technical condition of the resource. Care should be taken to ensure that the pages load quickly, are adapted for different types of devices and different browsers, and do not contain errors. All this will help minimize visitors’ loss due to technical conditions and bugs without interfering with making purchases or other targeted actions.
- Development of the design An outdated site, which does not meet modern trends and does not attract attention, prevents users from choosing favor of your proposal. If the bounce rate is very high, pay attention to what your site looks like. Perhaps, in his “appearance,” there is a lack of desire to perform the targeted action.
- Improving usability The convenience of the site and the elements located on it is the key to the hearts of not only selective people. If everything is at hand on the site, there is no need to look for the necessary and essential information. Tips and pop-ups are timely and not annoying, and the navigation is straightforward. The number of conversions will be higher.
- High-quality content. Signs of high-quality content are its compliance with the needs and interests of users, the absence of semantic and, of course, spelling errors, the presence of a logical structure, and benefits for readers. Such content helps attract users and increases their degree of trust, which positively affects conversion.
Site conversion rate is a useful tool that allows you to understand how well a resource is promoted and whether it meets visitors’ needs. The higher this indicator, the better you cope with attracting the target audience’s attention, working out the proposal, and delivering information to the user.
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