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How To Measure Conversion Rates

Posted By Jeffrey Eisenberg On January 27, 2005 @ 4:50 pm In Conversion Rates | 3 Comments

Conversion rate measures the number of visitors who took the action you wanted on your site divided by the total number of visitors. Every end-goal conversion (Macro-conversion), like a purchase, is composed of Micro-conversion points, like the click-through path in a shopping cart. In order to achieve the Macro-conversion a series of decisions has to be taken by the visitor, these clicks are measurable evidence of those decisions.

Only when you define and plan for Macro-conversions vs. Micro-conversions then you can understand why conversion rate is truly a measure of your ability to persuade visitors to take the action(s) you want them to take. It’s a reflection of your effectiveness in planning for every decision and the customer’s satisfaction with your plan’s implementation. Since every click represents a person making a decision then for you to achieve your goals, visitors must first achieve theirs first.

  • Overall conversion rate: Total number of actions considered conversion divided by total number of visits. This is a site’s overall effectiveness rating for getting visitors to fulfill your goals within a single visit.
  • Scenario conversion rate: Total number of visitors starting a specific scenario divided by total number who complete it. Scenario conversion rates enable you to quickly identify specific conversion processes that require improvement or ones whose successes should be modeled.
    • Linear – when visitors need to complete a registration process or checkout process.
    • Non-linear – these are the explicitly planned or implicit scenarios that are created by visitor segments as they navigate your website. In this type of scenario we measure from where people enter the scenario to where they complete the intended scenario and whether or not they hit our key value pages. Explicitly planning these non-linear scenarios is what we call “Persuasion Architecture."
  • Conversion over time: There are several measures that reveal a site’s effectiveness in generating conversions over time. Use this for situations where conversion is likely to occur over time or multiple visits.

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