How is conversion rate determined

A successful CRO program involves integrated costs and revenues. If this is your first project on conversion optimization , the formulas might seem a bit daunting. But, with time, you will get used to the basic math we are presenting in this chapter of our guide.

For an aggressive pay-per-click PPC advertising campaign , at a minimum, you should calculate the budget for the campaign, cost per click, and impact on profits.

When creating a campaign, you have to plan and budget for both costs associated and income generated. Several scenarios could affect campaign profitability, so you must always answer the following questions:. The company decides to experiment with selling online. In planning the campaign, the marketing team makes the following assumptions:. That means the company could conceivably spend all of that on driving visitors to the campaign. The table below compares a bid amount of 24 cents per click versus 48 cents per click.

On the other hand, if the campaign has a conversion rate of 0. Table 2 shows the impact of the campaign conversion rate on its bottom line. This astounding growth comes from a boost of 4 times more orders, while investment remains invariable. The average conversion rates in Adwords, in the US, by industry, in In our campaign example, at a 0.

Make sure you place the "About us" or contact information in a visible place. Designate someone who can respond to questions online in a timely manner or implement a call center if your business receives a large number of inquiries. Provide customer reviews, client stories, or case studies on your site so people have the information they need to complete conversions with confidence.

Find jobs. Company reviews. Find salaries. Upload your resume. Sign in. Career Development. What is a conversion rate? Types of conversions. Online shopping Information requests Business calls Account creation Digital asset downloads Site engagement Newsletter sign-ups.

Types of conversion rates. New visitor conversion rate Return visitor conversion rate. New visitor conversion rate. Return visitor conversion rate.

How to calculate a conversion rate. Step-by-step explanation of conversion rate calculation. Multiply this number by The number you get is your conversion rate. Round up if needed, then add the percentage sign. Step-by-step example of the conversion calculation:.

Your business had people order concert posters on your site out of 12, site visitors. Divide by 12, to get 0.

Multiply 0. Round up if necessary. In this case, your number stays at 1. Your final conversion rate is 1. Example of calculating a conversion rate. How to track a conversion rate.

Web analytics service Session recordings and replay tools Heatmaps Satisfaction surveys. Web analytics service. Session recordings and replay tools. You can use this research to compare these figures with the performance of your in-house advertising campaigns across a selection of channels and advertisers.

Adjust offers several solutions to help businesses measure and compare campaign conversion rates effectively. Adjust also helps businesses to integrate event tracking into their mobile apps. This helps marketers and advertisers track actions — such as account registrations — which can be contrasted with the overall performance of an advertising campaign. All rights reserved. Request a demo. The Adjust Mobile Measurement Glossary Welcome to Adjust's Mobile Marketing Glossary, where you'll find everything you need to know for a successful mobile ad campaign, and beyond.

Glossary Conversion Rate. Conversion Rate Definition.