Customer Conversion Rate: What Is It?

customer conversion rate

Customer conversion rate is a term that’s thrown around a lot in digital marketing, but it’s not always clear what it actually means. We’re here to help you understand exactly what the customer conversion rate is, and how you can use it to get the stats you need to make your marketing efforts more effective.

What is the Customer Conversion Rate?

The proportion of potential consumers that perform a particular targeted activity is known as the customer conversion rate. It describes the proportion of website visitors who carry out a particular intended action on the website or landing page in e-commerce or online marketing.

In most cases, the conversion action is a quantifiable action that can convert a potential customer into a paying one. Conversion actions can include registering on the website, providing contact information for lead generation, making a purchase, submitting a form, contacting the company, downloading a document or template, signing up for a subscription, etc. depending on the business goals.

The success of marketing initiatives, website layouts, salespeople, and other sales tools is gauged by the customer conversion rate. Lead generation, and ultimately sales and revenue, can be dramatically impacted by a higher customer conversion rate. Instead of striving to increase traffic, the metric concentrates on making the most of a website’s current users.

Customer Conversion Rate Calculation Formula.

The number of persons that carried out a desired specific activity in a specific amount of time is divided by the overall number of potential customers or site visitors, multiplied by 100%, to determine the customer conversion rate.

Customer Conversion Tracking.

A business owner must regularly monitor conversions in order to determine the client conversion rate. Businesses must regularly monitor customer conversions and test various strategies to determine which is most effective.

Businesses should always strive to increase customer conversion rates. Conversions may be tracked using a variety of analytics and advertising platforms with little effort.

Conversion Rate Optimization (CRO).

Customer conversion rate optimization (CRO) is the process of improving the landing page, sponsored advertisements, or website in order to raise the conversion rate. In other words, the goal of CRO is to improve the proportion of site visitors that carry out a particular desired action.

Together with search engine optimization, CRO is a crucial component of online marketing. It is a component of the endeavor to increase the number of potential clients and website visitors who become sources of income.

Increased conversion rates result in significant increases in profits. Among the things that may be done to improve client conversion rates are as follows:

Design improvement.

An appealing and simple design is necessary for a website to have a high conversion rate. Study web design or hire a designer who can assist in increasing conversions on a website.

Social evidence.

Potential buyers must understand whether a product has been tried and tested. Case studies, client testimonials, partner company logos, success stories, clinical trials, etc. can all be used to add social proof to a website.

Display of contact details in a clear manner.

Contact us concept with website icons on wooden cubes

Conversion rates can be increased by prominently displaying contact information, including a phone number, live chat options, and a physical address. This increases visitor trust that the seller is real and available to respond to any queries from potential consumers.


Often, headlines are the first thing visitors to your website will notice. Using a catchy and well-written headline will encourage website visitors to stay on the page or leave right away. The conversion rate of a website can be considerably increased with the right headline.


Conversions will go up by adding trust indicators like “trust” seals from well-known web security companies.

Incentives to act right away.

Clearly state that the measure must be taken immediately. Scarcity, which can be either time- or quantity-related, is one technique to elicit urgency.


A money-back guarantee is one way to assuage client concerns. Guarantees encourage clients to buy a company’s product or service with greater confidence, which boosts conversion rates. Conversion rates will often rise even further with longer warranties.

Eliminate all commotion.

Remove anything from the landing page that might divert customers from the primary goal of the company in order to direct their attention to a particular action. Remove superfluous menus, blinking elements, redundant navigation links, and irrelevant photos.

Why Conversion Rates Are Important

"CONVERSION RATE" text with hand of young businessman point on virtual graph Blue line and bar showing on increasing with background -business

Conversion rates let you evaluate the website and app performance. Knowing what percentage of visitors are accomplishing your business’s goals lets you evaluate your site or app’s success and find areas for improvement.

Increasing your conversion rate boosts sales with the same traffic. You can then lower your ad budget and get the same advantage or invest the extra income in new ad campaigns.

Conversion rates can fluctuate due to many variables. Despite the fact that larger conversion rates are often regarded as better, not all traffic sources are created equally and can still help you attract more new consumers even though their conversion rates aren’t as high. For instance, organic traffic converts more often than display traffic because users who search for something directly usually have greater intent than users who click on a banner ad.

What Factors Impact Conversion Rates

Good conversion rates can be impacted by a variety of factors, including but not limited to:

  • Channels and mediums influence the source of app and website users.
  • Forms of conversions, such as purchases or form fills.
  • Online shopping is more common in some nations than others depending on the region.
  • The landing pages’ messaging.
  • How well-optimized your app or website is.
  • The better the user experience, generally speaking, the greater the conversion rates.

What Is A Website’s Average Conversion Rate?

Shopping cart with Magnifying icon block and laptop computer

The typical rate relies on a variety of variables, such as your niche and target device.

Yet, the average rate is just between 1% and 3%. This implies that a sizable portion of your visitors will never complete the action you want them to. This is typical because not every visitor to your website intends to make a purchase.

Your goal should be to boost both the quantity of unique visitors and your conversion rate. But be realistic in your aspirations.

What Is a Good Website Conversion Rate?

Between 2 and 5 percent is a good conversion rate. With conversion rates, even a change of 0.5 percent can have significant effects. Also, we must point out that the leading brands have greater outcomes.

Tips To Boost Conversions

There are many ways to boost sales conversion rates, some of which differ by organization and industry.

Gear Up Your Website

One of the best strategies to increase sales conversion is to have a website that is geared toward conversions rather than just visitors. You can ensure that you not only attract more of this precious traffic, but you can also profit from it by having clear call-to-actions, visually engaging landing pages, and technically sound SEO setups. To avoid the hassle of individually learning each process, checkout the services of LeadOrigin.

Target the appropriate leads.

You can drive as much traffic as you want, but if the customers that see your product or service aren’t the right ones for your company, sales conversion will suffer. Make sure your marketing and sales teams are working together to discover why customers want to buy your service.

From there, focus your efforts on appealing to the particular problems that customers have that you can solve only in a certain way. Easy-to-understand sales dashboards can help you better identify where prospects are in your funnel.

Make product discovery better.

Hour-long product demo calls are not something people want to do. People want to be able to find solutions on their own, at least initially. Making better use of your leads’ time and increase your conversion rates can be accomplished by providing free trials, product discovery films, and other product displays.

Test A/B.

A/B split testing concept.

Having a clear grasp of what you’re testing and if those tests have a noticeable influence on results can help you increase conversion rates when making changes to your CTAs, landing pages, or email subject lines and/or language.


Increasing engagement with leads through the use of live chat capabilities is highly recommended because it gives potential customers an easy and appealing option to interact with your company (and for your team to convert those leads into sales).


Retargeting leads that have visited your website is a terrific approach to boost conversion, whether you use Google, Facebook, or other retargeting services. This enables the chance to distribute automated, contextualized material that can contain pertinent data and deals that encourage purchases.


A crucial, but sometimes overlooked, element of the sales process that may make or break conversion rates is the personal touch. Personalizing communications like phone calls, emails, and general content can be crucial.

See How Well You Are Doing

So there you have it! You now know what customer conversion rate is, and how to calculate it. It’s important to remember that this is not a single metric. Instead, it’s an indication of how well you’re doing with your customers—and what you can do to improve in the future.

If you want to learn more about customer conversion rates, or how to improve them, call our experts at LeadOrigin today!