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Conversion Rate Definition Simplified

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 you’re at right now, and what areas you need to focus on moving forward. That may sound great, but if you’re still wondering what we’re talking about, here’s the Conversion Rate definition simplified. Let’s dive in.

Conversion Rate Explained

One of the most common metrics for judging a website’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.


Looking at this with real numbers, let’s imagine you’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%).


It’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% — Is that good or bad? Since the industry average is closer to 2-3%, your website seems to be underperforming your competitors.


Put another way, your average competitors are 2-3x more successful. While that might be a hard pill to swallow, what’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.

Conversion Rate Definition Simplified

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, let’s get to work at figuring out the best path ahead.


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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