It is helpful to know not only how many visitors are coming to your site, but also how many of them are actually doing what you want them to once they are there. Knowing how many visitors you have to your site is important, but knowing how many of those visitors are buying products, or filling out contact information, or signing up for your blog, is crucial. This is known as your conversion rate. Once you have determined your conversion rate, you can set about figuring out how to improve it. The factors you use to determine your conversion rate will depend on the type of site you have.
The formula for determining conversion rate for an e-commerce site is simple. You want to take the number of visitors who purchase an item and divide that by the number of total visitors to your site, and multiply by 100 to get the percentage. A good conversion rate for e-commerce sites is considered to be 2%. That simply means that for every 100 visitors you have to your site, you can expect 2 of them to purchase something.
Lead Generation Site
Lead generation sites usually measure success based on the number of visitors who provide their contact information and agree to be contacted in the future. So, the simple formula is to take the number of visitors who provide contact information and divide it by the number of total visitors to your site. A good conversion rate for lead generation sites is about 2 to 5 percent.
Pure Content Site
Determining successful conversion for a pure content site can be a bit trickier. If you have a blog site, you might count those who sign up for subscriptions to the blog, or who add the RSS feed. You might also want to determine what percentage of visitors are actually leaving comments. Any of these things can be used to determine conversion rate, depending on what you want to measure. In simple terms, the conversion rate would be the total number of visitors who complete the desired action (subscribe, comment, etc) divided by the total number of visitors to your site. Optimum conversion rates for content sites vary greatly depending on the type of site, and the desired action considered a successful conversion.
If you haven’t heard of Google Analytics, your are missing out on a huge opportunity to compile, sort through, and utilize a boatload of great data on your site. Even easier than doing all I mentioned above, is to simply go to the site and look up your conversion rate, along with tons of other useful stuff. You can even compare your conversion rate now to a conversion rate you had in the past, all at your fingertips. It is without a doubt the most amazing tool for driving continuous improvement I have seen. Here is what it looks like: (Click on the image to see the bigger view)
As you can see, it is easy to track your conversion rate over a specific period of time. All you need to do is enter the dates and away you go.
So, now that you know how to determine conversion rates for different types of sites, and the tasty information you can obtain from Google Analytics, stay tuned for tips and tricks on how to improve your website’s conversion rate.