A conversion rate is the percentage of visitors to a website that take a desired action, such as making a purchase or filling out a form. For example, if a website has a conversion rate of 2%, that means that out of every 100 visitors to the site, 2 of them will take the desired action. Conversion rates are often used to measure the effectiveness of a website or marketing campaign.
Conversion rates are important because they allow businesses to measure the effectiveness of their website or marketing campaigns. By understanding their conversion rates, businesses can identify areas of their website or marketing efforts that are successful and areas that may need improvement. For example, if a business has a low conversion rate, it may indicate that there are issues with the website's design, messaging, or user experience that are preventing visitors from taking the desired action. By improving the conversion rate, a business can increase the number of leads or sales generated from their website or marketing efforts, which can have a significant impact on their bottom line.
There are several ways you can use conversion rates to make better decisions:
The concept of conversion rates has been around since the early days of e-commerce. However, the term "conversion rate" wasn't coined until the late 1990s, when businesses started to realize the importance of measuring the effectiveness of their online marketing efforts.
In the early 2000s, as more businesses started to invest in online marketing, tools for tracking and analyzing conversion rates became more widely available. This allowed businesses to better understand the return on investment (ROI) of their online marketing efforts and make data-driven decisions about how to optimize their websites and campaigns.
Over the past two decades, conversion rates have become an increasingly important metric for businesses of all sizes, as the growth of e-commerce and the rise of digital marketing have made it easier for businesses to reach and convert customers online. Today, conversion rates are an essential part of any online business's marketing strategy, and businesses are constantly seeking ways to improve their rates in order to drive more leads and sales.