How conversion rate is calculated

The formula for calculating the conversion rate is: conversion rate = (number of conversions/clicks) x 100%.

One, the definition of the conversion rate

Conversion rate refers to the number of times in a statistical cycle, the number of times to complete the conversion behavior accounted for the ratio of the total number of clicks on the promotional information. The formula is: conversion rate = (conversion / clicks) × 100%.

For example: 10 users see the results of a search promotion, 5 of them clicked on a promotion result and was redirected to the target URL, after which, 2 of them have the behavior of subsequent conversion. Then, the conversion rate of this promotion result is (2/5) x 100% = 40%.

Two, the application of the conversion rate

1, website optimization: the conversion rate is one of the key indicators of website optimization, through the analysis and optimization of the website's process, layout, content and other aspects of the website, you can improve the conversion rate of the website, thereby increasing the site's revenue. For example, for e-commerce sites, you can optimize the shopping process, improve the user experience, improve product quality and other ways to improve the conversion rate.

2, marketing strategy: conversion rate is one of the important basis for the development of marketing strategy. Through the analysis of the conversion rate, you can understand the user's needs and behavior, so as to develop a more accurate marketing strategy. For example, by analyzing users' purchasing behavior and preferences, we can develop personalized recommendations and promotional strategies to improve conversion rates and revenue.

3. Advertisement placement: The conversion rate is one of the most important indicators for evaluating the effectiveness of advertisement placement. By analyzing and optimizing the channels, time, content, and other aspects of advertisement placement, the conversion rate of advertisements can be improved, thus reducing the cost of advertisements and increasing revenues. For example, by analyzing the data of advertisement click rate and conversion rate, you can optimize the strategy and content of advertisement placement, so as to improve the conversion rate and revenue.

Categorization of conversion rate

I. According to the goal of conversion, conversion rate can be divided into website conversion rate and e-commerce conversion rate.

Website conversion rate refers to the ratio of the number of visits in which the user has carried out the corresponding target action to the total number of visits, and these actions can be a series of user behaviors such as user login, user registration, user subscription, user download, user purchase, and so on.

E-commerce conversion rate is the percentage of website visitors who purchase items from your online store. The following are typical conversions for an e-commerce site: online sales, adding products to a shopping cart, adding items to a wish list, email signups, social media shares, any KPIs that your company deems valuable.

Two, depending on the method of calculation, conversions can be categorized into same-day conversions and total conversions.

The conversion rate of the day is the ratio of the number of visits that were converted on that day to the total number of visits on that day. Conversion rate = the number of visits on the same day to implement the conversion ÷ the total number of visits on the same day. The total conversion rate is the ratio of the number of visits to the total number of visits. Total conversion rate = the total number of visits to implement the conversion ÷ total number of visits.