Conversion Rate

Conversion Rate refers to the percentage of new users that take a desired action on your website. This action converts them from an anonymous visitor to a lead. The desired action for your local service business might be subscribing to your newsletter, requesting a free quote, claiming a coupon, or something totally different.

How to calculate your Conversion Rate:

(#) leads / (#) of new users = (%) Conversion Rate

Calculating your Conversion Rate is straightforward once you define what a lead is on your website. Simply divide the number of leads you’ve received by the number of new users on your site over the same period to determine your Conversion Rate.

If there is more than one way to capture leads on your website, then you have two options. First, you can track the Conversion Rate for each lead type by using the new user count from the specific page the offer is listed on. Your other option is to total all of the leads you’ve received and use the new user count from your entire website.

Note: Keep in mind if someone fills out the same lead form more than once, they’re usually considered just one lead. The reason for this is you already have their contact information.

What we like about Conversion Rate:

Conversion Rate helps you understand how well your website is performing and identifies opportunities for more leads. You see, a high Conversion Rate means…

1. You’re attracting the right people to your website.
2. Your copy, images, and calls-to-action (CTAs) are resonating.
3. You’ve made it simple for website visitors to take the first step.

Conversely, a low Conversion Rate tells you something wrong with your site.  Either your website is loading slow, your forms are broken, your content is boring, you’ve attracted the wrong audience, or your offer isn’t compelling enough.

What we DON’T like about Conversion Rate:

If your website doesn’t receive much traffic, then you shouldn’t focus on tracking your Conversion Rate yet. The reason for this is you need a minimum number of new users to determine whether or not any changes you’ve made are effective. Instead, focus on increasing your Website Traffic Growth rate before getting caught up in your Conversion Rate.

Marketing metrics related to Conversion Rate:

Before you select Conversion Rate as your One Metric That Matters (OMTM), be sure to check out these related marketing metrics and KPIs for context.

Website Traffic Growth
Qualification Rate

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