Conversion rate formula: how to calculate it and tips to improve it

Are you aware that Internet businesses have thousands of indicators that need to be assessed for the health of the project? One of them is the conversion rate and it lets you know how profitable the company is at the moment.

The truth is, that if you don't know how to handle these formulas, it's very unlikely that you'll be successful as a digital entrepreneur. The key is the traffic that you know how to attract and that you manage to convert a small percentage of it into leads.

Do you know what the conversion rate formula is? Pay attention because you will now discover how to calculate it and a few tips to improve this indicator that’s so important for your business.

What is the conversion rate?

When you start a business, everyone has a different opinion about what you should and should not do in the process. 

Among so many comments you are likely to hear the much-talked-about term conversion rate. 

But what is really important isn't naming it, but explaining it. Well, the conversion rate is a metric used to know the results in a specific area of digital marketing.

With it you're able to know in depth how well you are carrying out an action, what can be improved and what strategies should be changed completely. 

That's how you'll find out how well the return is on all the company's investments, with the conversion rate.

"Everything that is measured can be improved," said one entrepreneur. 

That's why from now on you should rely on this indicator to know in depth the health of the business. Underestimating it is the worst thing you could do!

How can the rate of return help you measure the results of your business

Once you start a business you will realize that everything is an investment. It doesn't matter if in some cases you use your time and in others you inject resources, but everything is invested.

That's why the return on investment was created, to know when these investments begin to give profitability and how successful they are. 

How is it done? Very simple, a long time ago a formula was created that groups several variables and gives you the exact result of each conversion.

With this you will be able to measure important factors such as the conversion of leads, traffic, sales and more. The time has come for you to implement it in your business and find out how your numbers are doing.

How to calculate the conversion rate

Calculating the conversion rate is easier than it seems and by applying it you will know the state of your business in such sensitive areas as visitors, opportunities, leads, customers and much more.

What's the formula? Pay attention: you divide the number of goals or conversions obtained by the number of visits or other indicators you are evaluating. Now you will multiply that number by 100 and you will have the percentage of your conversion rate.

Still seem complex to you? Let's look at an example to help you understand how simple it is:

Let's say we ran a campaign to get new people to our website. From there 120 users accessed the site, but only 13 of them clicked on the CTA that we anchored at the top.

What would we do? We divide 13 by 120 and get a result of: 0.108. Multiply this by 100 and you get a 10.8% conversion rate. Which means that your CTA attracted only 10% of the visitors, a number that is not bad but can be improved.

And that's how you can apply this formula to any campaign you do on your website. 

With it you will know if you're getting the results you expected or you should improve the structure to attract higher conversions.

How to optimize the conversion rate of your website?

Have you already seen how easy it is to calculate the conversion rate? But let's not forget one detail: to manage your business, it's not enough to calculate it just once, you have to monitor it properly to see what changes are needed.

Do you want to improve your current conversion rate? Take a look at the following tips we have prepared for you:

1. Make a good call to action

If you want to get tangible results in digital marketing there is nothing more powerful than having a good call to action. Your text can be beautiful, but if you don't invite the reader to do something else your website will be just a pretty website but never a business.

Do you want to bill like a real entrepreneur? Dare to make calls to action that fit the cycle of the funnel in which your potential customer is. 

Maybe they just need more information, maybe they have more questions or maybe they're ready to buy. Your job is to detect this and offer them a solution based on their needs.

 Come on, you can do it!

2. Focus on leads

Yes, leads are a very important indicator for your business. With them you will store the data of those customers who enter your website, so the more visits you have, the more chances of conversion you will have.

How can you get more leads? Good question, although there is no precise answer, a good strategy is to place pop-ups that appear in a section of the content or on a landing page aimed at conversion.

What's the key? Offer something of value for free, whether it's an ebook, special content for a limited time... make sure you don't overuse the resource so as not to tire the reader.

3. Test and evaluate the data

You have to test all areas of your website to determine that they work as they should. Now, we emphasize checking your landing pages, which is where visitors usually arrive after entering the web, most of the time from your social networks.

What can you see? Analyze details such as the quality of the copy, the visual part of the page, the design and the content itself.

If everything is fine you can move on to the next point, but you already know that your landing page will be the engine that will put your business on autopilot.

4. Don't forget the security certificate

Hey, never forget the security certificate, yes, that padlock you will see on the top left, right next to the URL address: it works as a green flag that ensures Google that your site is trustworthy. 

With the security certificate your visitors will feel safer when browsing your website and that will translate into leads and conversions in the short term.

Now do you see the importance of taking into account the conversion rate on your site? It's time to always have it at hand to check the quality of the numbers at all times. 

This could make the difference between success and failure.

What do you think, would you add another metric to evaluate the state of your digital business? If so, let us know in the comments.