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Understanding Conversion Rate and Cost per Conversion


 
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As anyone who owns a web-related business knows, there are quite a few facets that are important to your success. Understanding the conversion rate, cost per conversion, and conversion rate optimization are integral components of growing your business. After all, the success of your website involves more than simply drawing traffic to it. A website's success is directly linked to its conversion rate or getting your website traffic to perform in predetermined ways.

Understanding Conversion Rate

The conversion rate as it relates to a website is the number of web users who complete a specific action upon arriving at the website. Your conversion rate refers to the percentage of visitors to your website who respond to a distinctive call to action. Each website owner predetermines the specific action that he wants the readers of his website to complete. This action can include signing up for a newsletter, completing a registration for membership, purchasing a product, joining a forum, or providing an e-mail address while signing up for special offers. It can also include downloading a software application, viewing a video, or visiting another website using a link on the website.

Getting your website visitors to go from casual contact on a webpage to the desired action is important for the growth of any website. This is where conversion rate optimization enters the picture. Through conversion rate optimization techniques, website owners can encourage their visitors to click through to the desired action more successfully. These techniques make use of colorful advertising, unique content, and enticing marketing ploys- all in an effort to get web users to click through to a desired end.

The conversion rate is usually given as a percentage. You can figure out the website's conversion rate by dividing the number of users who complete the predetermined action by the total number of individuals who visit the web page. The higher the percentage is, the greater the conversion rate that occurs.

Understanding Cost per Conversion

Along with the conversion rate, website owners should have a clear idea of their cost per conversion. This is the cost that it takes to convert website traffic into completed action. It is the expense that the website undergoes to get website visitors to complete the desired task. This desired task is also referred to as a successful conversion.

To calculate the cost per conversion, you need to take the actual cost of the website during a specific time period and divide it by the number of successful conversions during that same time. The resultant number can be used to gauge the website's successfulness, particularly through its advertising and marketing strategies.

Why should any website bother calculating the cost per conversion? To put it simply, this number can be used to assist website owners in troubleshooting poor performance so they can incorporate appropriate changes to rectify the situation. A thorough analysis of the cost per conversion can enable an individual to determine his website's return on his investment.

Intro: For a website to be successful, it needs to have a good conversion rate along with an affordable cost per conversion. Understanding these two terms is important if you want to be able to assess your website's success.

 

 




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