Defining Conversion Rate
First things 1st. What is conversion rate conversion rate is defined as the percentage of visitors that come to your website or app and complete a desired goal conversion rate optimization. The topic of this course are the strategies you put in place to increase the number of website visitors who become customers. Why is it important for you to understand conversion rates? There are two main reasons. First they help you know whether your site or app is doing the job it's supposed to do, which is generating revenue for your business. Second, it can help you extract more value from the traffic you're already getting. In. Other words, improving your site's conversion rate can help you increase sales without having to find new pockets of potential customers and for anyone who runs a business, you know, that's huge. I mentioned that conversion rate is the percentage of visitors who complete a desired goal, but this goal, let's call it A conversion varies depending on what business you're ru...
nning if you use your website to sell products. Your primary goal or conversion is for the user to make a purchase. Warby parker in this example sells glasses online. So they define a conversion as a sale or purchase If you sell products to other businesses what is called B2B or business to business or you sell really expensive or complicated products that require a consultation. Think of something like insurance, you're likely not selling them directly to people visiting your website. In this case you probably are connecting whoever is interested in your product with someone who can help guide them for these types of businesses. A conversion is typically defined as requesting a quote or a demo salesforce in this example, sales crm or customer relationship management software to organizations of all sizes. Their product is pretty awesome, but it's also very complex and can run up to millions of dollars in price. So for this reason they don't sell it directly on their site, they require you to fill out a form to request a demo and talk to an expert about it. So sales force in this case defines a conversion as a lead or someone filling out this form. Finally, if you sell a service, your conversion rate might be defined as a subscription. For example, in this example, the Skim is a popular and very witty daily email newsletter. A conversion for them would be defined as someone subscribing to their newsletter by entering their email address on that little white box that you see here. I run an online store that sells canvas bags. My ultimate goal with my store is to drive more sales. So that's exactly how I define conversions for my business. For me, a conversion is a sale period, take a moment to reflect on your business or the business you're supporting. What goal are you trying to accomplish with your website? Turn to your worksheet and add it there, you'll see I've already done. So for my business also take a minute to add your brand or organization in the top right corner of the sheet, now that we know what conversion rate means, Let's figure out how to calculate it.