Making sense of Traffic

Definition:

Conversion rate refers to the percentage of website visitors or potential customers who take a desired action, such as making a purchase, filling out a form, or subscribing to a service, out of the total number of visitors or potential customers.

Conversion rate is the ratio of desired actions taken by visitors to a website or potential customers compared to the total number of visitors or potential customers, expressed as a percentage.

How-to guide:

Define the desired action: Determine the specific action you want visitors or potential customers to take on your website, such as making a purchase, signing up for a newsletter, or requesting a quote.
Track visitor behavior: Use analytics tools to monitor the number of visitors or potential customers who visit your website and the number of people who complete the desired action.
Calculate the conversion rate: Divide the number of people who completed the desired action by the total number of visitors or potential customers and multiply by 100 to get the conversion rate percentage.

Real-world example:

If an e-commerce website receives 1,000 visitors in a month and 100 of them make a purchase, the conversion rate would be 10% (100 purchases / 1,000 visitors * 100).

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Conversion Rate = (Number of Desired Actions / Total Number of Visitors or Potential Customers) * 100

Visitors	Desired Actions	Conversion Rate
1,000	100	10%
2,500	150	6%
500	50	10%

Conclusion:

In summary, conversion rate measures the effectiveness of a website or marketing campaign by determining the percentage of visitors or potential customers who complete a desired action. It helps businesses evaluate their marketing efforts and optimize their strategies to improve conversions and achieve their goals.