Thirumalesh Prasad C G Thirumalesh Prasad C G, September 28, 2018

What does conversion rate of your business tell you?

The conversion rate of a business is one of the most critical growth parameters of every company with an online presence. It is the best way to measure the performance of your advertising campaign and visibility in the market. Conversion rate takes into account the total number of individuals who were able to see your site appear in adverts (impressions) and the total number of times these individuals visited your site over a period, their activities. Unlike the cost-per-click or click-through rate, the conversion rate of your business describes how good your marketing is at attracting potential customers to do what you want them to do at a particular point in time. This is known as converting in the marketing world. On a general note, the higher your conversion rates as a business, the better and more effective your marketing strategy is.

After taking cognisance of the variable importance attached to conversion rate in business, we shall focus the better part of this article on what is conversion rate and how it can be calculated as a monitoring tool for the effectiveness of your marketing campaign and how it can be improved.

What is Conversion Rate?

Simply put, a conversion rate is the percentage or rate of visitors to your landing page or website. The use of the term “conversion” is mainly dependent on the business goals. The conversion rate of your business takes into cognisance some essential parameters which can be used to measure the efficacy of your marketing strategy and also business growth. These parameters of conversion rates are listed below;

  • Calling your business
  • Downloading something (software trial, eBook, mobile app, etc.)
  • Engaging with your online chat
  • Engaging with your site in some way (time on site, repeat visits, number of pages visited)
  • Making a purchase
  • Registering on the site
  • Signing up for a subscription (either paid or free—like a newsletter)
  • Submitting a form (contact us form, lead gen form, etc.)
  • Upgrading their service
  • Using something (new/advanced feature on your software or app, merely using your software/app for a certain amount of time)

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These and many more parameters which determine what you can deduce from your conversion rate. The higher the conversion rate on your site, the higher the likelihood of your business’ progress towards attracting a potential customer towards importantly becoming a paying client.

How Do I Calculate Conversion Rate?

To calculate your conversion rate is very easy. All you will be required to do is to divide the total number of conversions you get in a given time frame by the total number of individuals who visited your landing page or website and multiply it by 100%. The final result you obtain will give you a heads up on the various aspects of your business which is doing well and which of them will need urgent attention to attract the right customers and turn them from prospects into loyal buyers.

What your conversion rate means

Your conversion rate can be as specific as possible as it gives you the needed information about your business in that particular area. This specificity makes conversion rate the best tool to examine the performance of your site based on the following;

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Campaign conversion rate

This gives you the needed information on how well your targeting changes are improving in the market. A high conversion rate tells you about how good your marketing campaign is attracting customers to your site.

Individual ad conversion rate

This gives you adequate information on the need to change your ad copy. A very low conversion rate means that your adverts are not attracting the customers as they ought to. If it happens that your business experiences a low conversion rate, it is of paramount importance that you change the nature of the Ads.

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Keyword conversion rate

The major aim of having keywords is to rank your site high in Google Searches. A good conversion rate shows that your keywords are effective. It will also give you adequate information on which of the keywords require more actions to help your site rank higher on Google searches.

Marketing channel conversion rate

This takes into cognisance, the way your AdWords traffic or Facebook Ads are going to convert. They show you which of the channel is not doing well in the market so that you can focus on improving them.

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Overall conversion rate

This has to do with how well your site can convert traffic from any source. The more conversion rates you experience on a website, the better its performance on the global market.

Page-level conversion rate

This gives you an indication on which of the pages is better at converting traffic from all sources on the internet.


The benefits of conversion rate to a growing business can never be overemphasised. The more the conversion rate, the better the business performance in the area under survey.

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Thirumalesh Prasad C G

Written by Thirumalesh Prasad C G

Thirumalesh Prasad C G (Thiru) is an entrepreneur and the CEO and Founder of Inboundsys, India's No.1 Hubspot partner agency and an IT services company. Before starting Inboundsys, Thiru has had 12 years of experience working for various multinational IT products and services companies in India and abroad. He has been a significant member and worked as a user interface architect in designing the user interface for many web applications and products. Though initially an electronics and communications engineer academically, he was fascinated by and driven towards internet technology at the early stages of the internet boom, which ultimately motivated him to get a Master’s degree in Web Design and Multimedia. In addition to running Inboundsys, he is also an advisory board member in a couple of other design studios and digital marketing agencies. He is a passionate blogger and a writer who loves writing on digital marketing, inbound marketing, lifestyle, philosophy, positive thinking and motivation. A husband and a father of two, who loves travelling places, meeting new people, experiencing new cultures and cuisines. In his free time, he likes reading books, experimenting with photography and loves being in solitude for a while. As a result of his varied international business experience, Thiru is an open, adaptable colleague who celebrates diversity in all aspects of his life. Of particular interest is inspiring positivity in others and this trait is appreciated by all who are lucky to have the opportunity to partner with him!

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