The principle is the same as in the previous point, with the only difference that it is much easier to calculate the conversion percentage here. You can record each visit to the site and each target action. You just need to calculate the ratio of users who performed a certain action to the total number of visitors.
And here is one trick
That is sometimes used by not the most special database conscientious SEO studios and SEO specialists. They do everything possible to increase traffic to the site, and emphasize this in reports for the client. But the CR may remain unchanged or even drop. Why? Because you are brought non-target users. It is good if this does not affect the ranking of your site, but its positions may drop. The fact is that modern search algorithms are very strongly focused on behavioral factors. When the number of visitors grows, and the number of orders remains the same, purely mathematically the CR indicator falls. That is, we get a paradox: the site increases its audience, but Google regards this as a negative process, a deterioration in behavioral factors.
The result is a drop in positions with a simultaneous increase in traffic.
We emphasize! If you need to increase the conversion of the site, you need to work with experienced specialists. Otherwise, you risk wasting money, getting outright regression instead of progress, and in some cases, even driving your site under the filters of search engines.
By the way, we have a great article on this topic on our blog “How to Increase Website Conversion and Boost Sales”. In it, we also talk about conversion, ways to calculate and increase it, about services that can easily measure CR without involving specialists. We recommend that you read it so that we do not repeat ourselves again.
What are the types of conversions?
There are two main types of conversion:
- Macroconversion is an indicator of the number of users who performed a target action and brought direct profit to the company.
- Microconversion is an indicator that takes into account target actions without taking into account the main action (purchase). This could be registration on a website, subscription to a newsletter, opening a pop-up banner, etc.
It is important to understand the strategy here: a good marketer goes from smaller to larger. Without successful micro conversions, macro conversions are impossible.
In specialist circles, you can also come smm promotion without advertising budget across additional types of conversions. They are not always remembered, but we must mention them:
- Direct CR is when a visitor comes to the site and immediately places an order.
- Cross-device CR is a principle that involves tracking the actions of one user from different devices.
- Associated CR is a term used to describe the points of interaction with a web resource that ultimately led to conversion.
- CR by impressions is the number of views of advertisements.
If you are just starting to analyze conversions, it is not always necessary to understand these terms at first. But in the future, we still recommend studying them in more detail and analyzing them correctly.
How is conversion calculated?
So, how do you calculate conversion? There by lists is a simple formula that you can use to determine your CR rate yourself.
As you can see, it’s not that complicated. You can take values for certain periods, compare indicators, evaluate how changes on the site, updates in the advertising campaign, technical improvements to your web resource, etc. affect conversion.
If you don’t want to do the math manually, you don’t have to. Google developers have already done it all for you. Just use Google Analytics:
1. Google Analytics
In your Google Analytics account, you can not only see conversion values for selected periods, but also use various calculation templates for several main categories:
- Traffic sources (registration, account creation).
- Income (payment processing).
- Request (view contacts or product).
- Interaction (sharing information, adding to wishlist, subscribing to newsletter, etc.).
Google Analytics is a useful platform that allows you to get comprehensive information about conversions, analyze their fluctuations under the influence of various factors, and conduct A/B testing.
Conversion formulas
Additional formulas are derived from the formula given in the previous paragraph. With their help, other conversions can be calculated:
In online promotion, the conversion cost is also important. The conversion cost formula is extremely simple:
sum of the costs of all conversions for the period ÷ number of these conversions
For example, we take three conversions, the cost of which is $10, $12 and $15. We sum them up and divide by their number (three). We calculate: (10 + 12 + 15) ÷ 3 = 12.3 . That is, the average cost of conversion in our case is $12.3. Of course, this is the simplest example. Usually, we have to work with much larger volumes of numerical data and look for options to automate the calculation process. But this is a topic for a separate conversation.