# What is an average conversion rate

## Conversion rate

The conversion rate (also conversion rate, conversion rate or conversion rate) is a KPI from online marketing. It shows the ratio of visitors to a website to conversions. The conversion rate is given in percent. The conversion doesn't necessarily have to be a purchase or a transaction. Every previously defined and achieved goal can count as a conversion. The conversion rate can therefore also reflect the ratio of visits to downloads or newsletter registrations. For CRO (conversion rate optimization), measuring customers in relation to the number of conversions is one of the most important key figures. The CRO is usually part of SEO (search engine optimization). It can improve lead generation, sales and sales figures.

### Definition of conversion rate 

The conversion rate describes the ratio of visits / clicks to conversions achieved. Conversions are conversions of prospects into customers or buyers. For example, they can consist of purchases or downloads.

### Calculate conversion rate 

Basically, the conversion rate can be calculated by dividing the number of conversions by the number of impressions. Example:

100 conversions / 1000 impressions = 10% conversion rate.

However, this also includes automated impressions by bots and repeated page views by the same user. This variant is therefore less precise. However, if you only use the log file analysis to measure the number of visitors, you can use this method to get an approximate value.

If you want to calculate the conversion rate more precisely, you work with unique visitors or sessions and use them in the formula instead of the visits. Each visitor is only counted once, even if they visit the site several times on one day. If sessions are used for the calculation, the length of stay becomes the decisive factor, not the number of subpages that a visitor clicks on. In order to ensure an accurate count, websites usually use cookies to mark visitors.

more exact conversion rate = (number of conversions x 100) / (number of unique visitors)

A certain period of time is always selected for this calculation and only one conversion per unique visitor per day is calculated. The size of the page impressions does not play a role in the calculation.

### Which conversion rate is good in my business? 

In general, online marketing experts assume an average conversion rate of 1% in e-commerce. In practice, this means that every 100th visitor purchases something in the shop. Successful online shops usually work with conversion rates of just under 10 percent. However, the conversion rate depends on many other factors such as the type of products, the price of the products and the season.

It is therefore clear that a shop for cheap electronic items under EUR 10 generally has a higher conversion rate than a shop for sports bikes with prices averaging EUR 1,000. Likewise, the conversion rate of an online shop for Halloween items in October will be many times higher than in the rest of the year.

It is enough for a shop for luxury goods if one in 1,000 visitors buys an item, while a shop from the FMCG sector has to sell many items in order to achieve a profit that is nearly high.

It can therefore not generally be said that a lower conversion rate is the result of poorer optimization. More important are factors such as supply and revenue generation. A lower number of visitors can mean a higher conversion rate, but the profit can still be below what a higher number of visitors achieves at a lower conversion rate.

Example calculation:

100 visitors * 3.5% conversion rate * 1,000 € sales total = 3,500 € sales 500 visitors * 2.5% conversion rate * 100 € sales total = 1,250 € sales

Benchmarks such as visits-to-leads conversion and leads-to-customer conversion serve as a guide. A good conversion rate for visits to leads is between 1 and 5 percent. The conversion of leads to customers is between 1 and 20 percent.

### These factors can worsen the conversion rate

• too few payment options
• Complicated login processes, for example too many form fields or clicks
• inappropriate SEA measures; the visitor expects something different than what is conveyed to him in the advertisement
• dubious looking order process
• Insecure order process, for example without https protocol
• technical problems with a payment service provider, for example incorrect forwarding to PayPal
• [1][2]
• poorly chosen landing page or broken campaign links
• lack of confidence-building measures towards the customer
• Information that is not obvious at first glance, for example about shipping or the imprint
• grammatically and stylistically incorrect texts
• illegible font and color

### Mobile user experience and conversion rate 

Access, visits and sessions via mobile devices are increasing steadily. A shop that is not mobile-friendly is increasingly confronted with a deterioration in its conversion rates. Across all industries, the mobile conversion rate of Adwords in 2018 averaged 3.48 percent in the Google search network and 0.72 percent in the display network.[3]

Evaluations show that most mobile leads are made via smartphone access. The leads-to-customer conversion rate is higher for devices such as tablets. Stationary computers are still most significant for a successful sales funnel. Growing, mobile lead generation is an important indicator for maintaining or achieving conversion goals in the future.

### Other important key figures 

The conversion rate should never be evaluated alone without taking the corresponding sales and profit figures into account. In practice, therefore, other key figures such as ROI also play an important role in measuring success.

In addition, companies use KPIs such as the cash conversion rate.

If you work with Google Ads, you can set up conversion tracking to measure the conversions achieved with the advertising program. The advertising tool then shows the conversion rate by calculating the ratio of the number of conversions divided by the total number of ad clicks. At the same time, a certain period is taken into account within which the conversion took place.