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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.
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