What Is A Conversion?

A very important term in the internet marketing world is conversion. Most people consider a conversion to be when someone makes a purchase or completes the payment process.  But it can also be someone opt’ing into your email subscriber list or making a phone call.  Put simply, a conversion occurs when you turn a click on your webpage into a paying customer or you get them to click your affiliate ads or take the needed action. Learning more about what a conversion actually is can be a great way to increase the conversion rate of your website, which is ultimately your goal as an internet marketer or business owner.

The marketer’s dictionary definition for conversion rate is the ration of visitors who convert from content viewers into desired actions. This conversion can actually be many different things. While on retail pages, a conversion would be a sale, on other pages it may be something as simple as signing up for a mailing list or clicking on a banner ad.

The conversion rate is calculated with a very simple formula, which is number of goal achievements divided by the total number of visits. However, once you have the conversion rate, what good does it do you as an internet marketer or business owner? By itself, it is not very useful. This is because every type of website is going to have a different target conversion rate.  But now you can test, test, and test again to get the optimum conversion rate.  This is a key element to any business.

It is often much easier to get someone to click a banner than to make a purchase. In turn it is easier to make a small sale than a large one. So, these rates are really only useful when compared among themselves or among similar websites.
Most business owners are not aware of this type of jargon so next time you hear the term conversion rate, you will know exactly what it is they are talking about.

Talk Soon!  :-)

11 Comments
  1. Conversions are what you want then right, if you are turning a click into a purchase then that is the best case scenario for what happens when someone visits your site. Thank you for taking the time and effort it took to explain this in terms that people like myself will understand. Great post please keep up the good work I look forward to it.

  2. I have most often heard about the term, conversion, when it comes to website sign ups, but now I am understanding that it can be used as a general term which can be applied to any form of desired action that you want to bring about. I guess the key is to test and tweak. One strategy I have heard about is creating a funnel that sends a visitor to a buying page.

  3. In this case conversions are a good thing and should be something that you want. I have been on many web sites that would have had no conversions simply because the site looked that bad. You have to have an appealing site in order to get conversions because that is what keeps the people there. Thank you for putting so much work into this.

  4. Companies that take on a structured approach towards conversion optimization are twice as likely to see a large increase in sales? Given this, you’d think more companies would test and run experiments. Yet 61% of companies do less than 5 tests per month. I’m guilty of not testing and tweaking. I get lazy about it and so do plenty of other people. When you consider that, you realize that it is much easier to win.

  5. Conversion is a good term and should be consider as such when you are talking about this kind of thing. You can have conversion in religion and things like that but a sales conversion is the kind you want if you are in business of any kind. Thank you for posting this it was kind of obvious to me but I can understand why you have to explain it.

  6. I believe that the design of your website not only determines the appearance of a website, its memorability and identity, but it can also be used as a tactic for improving your conversion rates. If you have no competitors, you can use the most primitive typical design. But if you are promoting a huge project in a tough competitive situation, design should be given a serious consideration. I think visual layout is just as important as the text content and the anchor key words and any of the other seo factors.

  7. It is true. When you convert more traffic into clicks, inquiries, and paying customers… your sales, revenues and profits go up – even without increasing website traffic! I read somewhere that some persons have said you can learn, grow and profit from the secrets of the highest converting websites in the world by attending Conversion Conference. I am not sure about the date though or whether it has already passed for this year of 2013.

  8. Thats right… there is no shortcut to testing. in fact testing should be done all the time.

  9. This was very enlightening. I always thought of conversions as making the final sale. I did not think of a successful conversion as getting a site visitor to accomplish a desired action. I suppose if you are trying to build a large following via an email list, getting someone to opt into your web form could be considered a successful conversion, even though your ultimate goal might be to sell products / services to your list.

  10. I have a website that i have mentioned in the question and the thing is i am getting good rankings for this website on kewords like “software development india” but am not getting any leads or conversions from the website daily traffic is around 130+ visitors but most of the traffic from india i want to get more traffic from USA, CANADA, UK. I hope I get some more guidance.

  11. HI Ann,

    We would be happy to help you out just shoot us an email through the contact page.

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