7 Min Read
Conversion Rate Calculation: Track Your Campaign Success, Many Purchases at a Time
As marketers evolve their strategies to more effectively advertise their brand or products, there are plenty of metrics used to evaluate the success of their ad campaigns. We are doing a deep dive into the data that every marketer should be tracking. We’ve already covered ROAS, and next up – conversion rate.
Conversion Rate Definition
Conversion rate is the percentage of users who complete a desired action. This action will vary depending on industry and business, and will possibly even change as a marketer moves from one campaign to the next. By looking at each campaign’s goals, a marketer can better determine the best action to compare against the total number of users. Here are some examples of conversions that you can measure:
- Clicks (of an ad, a page, or any other link)
Conversion Rate Calculation
Once you have decided on a goal (or three) to track, you can calculate your conversion rate. There are a couple versions of conversion rate formulas out there, but we think this one is the best way to measure success:
Conversion Rate = Clicks or Visits / Conversions
As an example of using this formula, let’s say that 100 people saw your ad and visited your site, and 10 of those users converted. Your campaign’s conversion rate would be 10%. This formula is pretty straight-forward, so just make sure you are plugging in the correct data.
Conversion Rate Calculator
Because we know just how busy you are, we created this library of marketing calculators. So just plug in the necessary information to calculate your conversion rate, and know that you are getting an accurate metric.
What is Considered a Good Conversion Rate?
Just like anything else involved in measuring your marketing success, determining whether you have a optimal conversion rate will depend on your business. The easiest way to know your conversion rate is indicating a successful campaign is by measuring it against past work. To do this, look at your metrics before running a new campaign and use it as a a baseline. For example, let’s say you are a clothing company running a campaign for a new sweater line and want to determine whether your ad campaign is successfully driving conversions. By comparing the new conversion rate to any campaign run in the past, you will get a baseline for measuring the success of your new conversion rate. And if you have no past campaigns to measure against, just know that the higher the percentage, the better your campaign is performing.
No matter what business you’re in, we bet we can help improve your conversion rate. Find out how we can help boost your Conversion Rate.
Why Should You Keep Track of Your Conversion Rate?
There are a couple reasons why you should be keeping track of your conversion rate. Firstly, a conversion rate allows you to track how successful your campaigns, lead gen pages, and website actually are. If you have a high conversion rate, you are doing something right! Conversion rates can also be an indicator of a successful UX design strategy. If your pages have a high conversion rate, the designs of your website and ads are likely appealing to your target audience.
Looking to Calculate Another Metric?
We compiled a library of the Essential Marketing Calculators that every marketer should use to track the success of their campaigns.
Sign up for SteelHouse updates
Learn how SteelHouse can help you drive new visitors to your site and bring them back to convert — all from a single platform.