What is a Conversion Rate?
A conversion rate is the percentage of visitors who complete a specific action on your website.
This action could be anything from purchasing, signing up for a newsletter, downloading a resource, or filling out a contact form.
Simply put, it tells you how well your website or ad turns visitors into customers or leads.
Knowing your conversion rate allows you to easily assess your marketing efforts’ effectiveness and identify areas for improvement.
What is the Formula for Cost Per Conversion Rate?
To calculate cost per conversion, you divide the total amount spent on a campaign by the number of conversions generated.
For example, if you spent $1,000 on ads and got 50 conversions, you would divide $1,000 by 50.
This gives you a cost per conversion of $20. This means you’re spending $20 to get each customer or lead.
What is a Good Conversion Rate?
A “good” conversion rate depends on your industry.
For example, in eCommerce, conversion rates typically range between 2.5% and 3%.
A rate between 2% and 5% is often considered average across industries, but top-performing websites can achieve much higher rates.
What is Conversion Rate Optimization?
Conversion Rate Optimization (CRO) is the process of improving your website to encourage more visitors to take a desired action, such as making a purchase, filling out a form, or signing up.
It involves A/B testing two webpage or landing page versions to see which one performs better.
The goal is to find the version that leads to more conversions—whether that’s more leads, sales, or sign-ups.
CRO tests different elements, from big changes like a new checkout process to small tweaks like button colors.
Optimizing these elements can help you convert more visitors into customers, reduce bounce rates, and better use your traffic.
Use our conversion calculator to analyze your current performance and start optimizing today!
Case Studies: Real Results in Conversion Optimization
Let’s see how businesses have successfully improved their conversion rates through strategic testing and optimization.
Hubstaff’s Homepage Redesign Boosts Conversions by 49%
Hubstaff, a time-tracking and project management software, aimed to overhaul its homepage to enhance its online presence and improve conversions.
Optimizing their homepage was crucial, as traffic was funneled directly into trials and paid plans.
Using heatmap analysis, Hubstaff identified key areas where visitors encountered friction. Armed with this data, they reorganized their homepage to better showcase important features.
The team also conducted a split URL test on a new design, closely monitoring visitor-to-trial conversions.
The results were remarkable—a 49% increase in trial sign-ups.
The redesign effectively boosted conversions without negatively impacting paid subscriptions, proving that strategic updates, backed by research and testing, can drive significant growth.
How Campaign Monitor Converted 10.8% of Abandoning Users
With the help of the ConversionLab agency, Campaign Monitor boosted sign-ups without creating new content.
They used targeted pop-ups to promote their best email marketing guide on high-exit pages.
Focusing on users about to leave kept potential leads engaged longer. Using Unbounce’s pop-up tools, they converted 1 in 10 exiting visitors into leads.
The result: a 10.8% conversion rate, capturing 271 new leads in one month—showing how optimizing existing content can drive significant conversions.
Ready to Boost Your Conversions?
Get your insights with our conversion rate calculator and see where you can improve. Need expert guidance?
Let Azarian Growth Agency’s CRO specialists help you fine-tune your site, drive more sales, and maximize your revenue!