Please can someone explain what conversion rate means please ?
Well it depends what you're talking about really. For example :
If you are selling products that are on amazon, and you get 10 clicks - 1 sale. This means that your conversion rate is 10%. (10% ended up purchasing something).
If you're talking about Adsense, let's say you get 100 page views and you get 5 clicks, your conversion rate is 5% (5% clicked on the ad).
I think that answers your question
It does, thank you very much
Hello my friend, conversion rates means this "the percentage of a desired action that was completed on your webpage"
So if your desired action was for someone to buy your product; and each time 100 visitors landed on your page 20 people purchased your conversion rates would be 20%
If your desired action was for someone to opt in to your list and each time 100 visitors landed on your page 50 people opted in, your conversion rates would be 50%
Hopethat helps matey
Hold on , now I'm confused!
Do you measure the conversion of total site VISITORS to sales or total CLICKS to sales?
I would have thought that total site visitors to sales is the best measure.
If considering visitors, best to use absolute unique visitors as your figure.Originally Posted by raymortim
You can have conversion rates based on clicks but this can often be refered to as Click Through Rate - but depending on the sector your 'coversion' may not need to produce a sale - you might want a registration, competition entry, customer to request a call enquiry or more info (ie to get a custom quote), or a variety of different actions that require your audience to do something in response to your marketing effort.
By comparing the number of clicks to sales and the number of visitors to sales you can sometimes identify weaknesses along the chain of clicks that you can work at improving to enhance the end goal. - ie, if 45% make it to your checkout but don't complete, you would investigate what problems were going on. Or if 95% clicked on a banner but didn't complete to your desired end goal you may want to check if your banner is misleading.
um, CTR is ALWAYS the ratio between impressions and clicks. Nothing to do with conversion...
CR is the ratio between clicks/visits (whether unique or not that's debatable) and the desired action (=sale, call, registration, whatever's classed as an action from a visitor).
Hero, I don't think it is right to say clicks have "nothing to do with conversion". A click is the conversion of a passive viewer to someone actively engaging in your message and showing interest- as shown and measured by the action of clicking through to learn something more. I already expressed in my post that this action has it's own terminology - CTR. A click is often a 'desired' outcome/goal for many marketing activities and can show the evolution of conversion along a chain of goals.
How well your clicks convert is important because it can also have a direct impact on other marketing efforts and goals - ie what you pay for PPC advertising. - A poor conversion rate of impressions to clicks will negatively affect what you pay in your PPC campaigns as the media owner will consider your ads to be of little relevance or of poor quality to their audience. How well the convert on to later goals - ie purchase- can also be an indicator to the media owner of how clear your marketing message is - ie if you have a great click through rate but then those people quickly bounce off your site, goolge may think your ad is misleading, or your site landing page isn't of good enough quality to the visitor coming via the click and your quality score will go down and your CPC will go up.
Additionally, the ability of your affiliates to convert their customers to click will have a direct impact on a merchant's traffic levels and then their ability to convert those referals into sales. 0 referals = 0 opportunity to convert to a sale.
If you can't get a good CTR at those early marketing stages then you reduce the numbers coming through who you might hope to converton to other goals (sales, quotes, etc) that might lead to you closing the deal, making profit and getting a return on your investments.
Therefore I think clicks and conversions have quite a complex inter-relationship.
Unfortunately it is the first rule of statistics that they are notoriously unreliable because they can be manipulated to pretty much any way you like. - ie whether you use Absolute Unique Visitors or Total visitors in your calculation of conversion rate. - Depending which you use will give you quite varied outcomes.
what I was pointing out is that you can't use the term "click through rate" as another way to refer to "conversion rate". The 2 are different metrics, different KPIs.
As to your point on CTR/CR correlation - You don't need a high CTR to achieve high CR. It's the quality of the traffic that makes the difference. You need a high CTR to get high volume of traffic - converting that traffic is a whole different art. Yes, the quality of that traffic makes things easier, but we tend to forget in affiliate marketing that no matter how qualified the consumer is when leaving the affiliate site, ultimately the failure to convert them into a sale is entirely the merchant's fault. Yes, the merchant needs the traffic to be targeted, qualified etc etc, but the vast majority of affiliates, seeing as they're paid on conversions only, already make sure the traffic is relevant. They've done their bit - does the merchant follow through though?
Anyway. My point is that I agree with you that clicks and conversions have a direct correlation - but I disagree with you that impressions and conversions have that much to do with each other directly; because there's a middle step in between.
Unless you use eCPM as a KPI in your campaigns of course.
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