## Simple Definition of Conversion Rate

When it comes to any kind of marketing, but especially digital marketing, it is crucial to understanding your conversion rate. After all, this give you a benchmark of where youâ€™re at right now, and what areas you need to focus on moving forward. That may sound great, but if youâ€™re still wondering what we’re talking about, here’s the Conversion Rate definition simplified. Letâ€™s dive in.

## Conversion Rate Explained

One of the most common metrics for judging a websiteâ€™s success is its Conversion Rate. The formula is simple: your Conversion Rate is equal to the number of conversions, divided by the visitors of your website, then multiplied by 100.

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Looking at this with real numbers, letâ€™s imagine youâ€™ve had 2,000 visitors with a particular time period, but only 65 website sales. To find the conversion rate you divide 65 by 2,000 (.0325), then multiply it by 100 (3.25%).

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Itâ€™s important to note that depending on your web tools, like Google Ads or Google Analytics, your Conversion Rate may be easily accessible, without needing to rely on having a calculator nearby. The question that remains is what your current Conversion Rate means for your business.

## Why Conversion Rate Matters

When you understand your Conversion Rate, you gain the power to make educated decisions. Let’s say you run a e-commerce store and your conversion rate is 1.2% â€” Is that good or bad? Since the industry average is closer to 2-3%, your website seems to be underperforming your competitors.

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Put another way, your average competitors are 2-3x more successful. While that might be a hard pill to swallow, whatâ€™s even worse is that on the higher end, your competition is converting at a 5-7% rate, which means they are bringing in up to 6x the sales that you are.

## Interested in Improving your Conversion Rate?

Are you ready to kick it up a notch? The first step may be understanding your Conversion Rate, but what you do with that information is what really counts. If you have room to grow, give this video a thumbs up. Then, letâ€™s get to work at figuring out the best path ahead.

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Contact New Tab Marketing today to discuss your Conversion Rate and the various approaches you can explore to take your business to the next level.

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