Calculate the conversion rate of your product pages or ad campaigns. Simply add the number of conversions and the total number of visits and click calculate. The resulting conversion rate is expressed as a percentage.

## What is the conversion rate?

The conversion rate describes how many users take a desired action (a conversion) out of the total number of reviewed users. In ecommerce, it typically measures how many ad clicks or page visitors led to a sale.

## How to calculate the conversion rate

The conversion rate formula is as follows: `conversion rate = 100 * conversions ÷ total number of users`

. It is always expressed as a percentage. Here’s how to calculate it step by step:

- Find your total number of conversions, e.g.,
`15`

. - Find your total number of users, e.g.,
`100`

. - Divide your conversions by your total user base:
`15 ÷ 100 = 0.15`

- Express it as a percentage:
`0.15 * 100 = 15%`

.

## What is a good conversion rate?

Conversion rates differ by industry. As a result, your benchmark depends on what products you sell and who your competitors are. As a rule of thumb, your minimum conversion rate should be **anywhere around 2-3%**. The higher the better.

Industry | Average Conversion Rate |
---|---|

Food & Beverage | 5.5% |

Haircare | 3.5% |

Beauty and Skincare | 3.0% |

Health & Beauty | 2.8% |

General Apparel | 2.7% |

Toys and Learning | 2.3% |

Electronics & Accessories | 2.2% |

Sporting Goods | 1.5% |

Home Appliances | 1.0% |

Home Furniture | 0.6% |

## How can you improve conversion rates?

A low conversion rate indicates that you need to spend some time optimizing your campaigns and product pages. So how do you do that?

### 1. Try A/B Testing

Do you want to know if your ads could convert higher? Try A/B testing!

Here’s how: Show half of your target audience the new version of your advertising campaign. The other half will still see the previous version.

You can now compare the performance of both versions, A and B. That way you know which campaign is worth the investment.

### 2. Use colours that drive action

It’s no secret that certain colours convert better than others. If you use blue or black for your call-to-actions, think again. Instead, try red, orange, yellow or green. Those colours have proven to drive sales time after time.

### 3. Simplify your check out process

Nobody likes to wait. We’re living in a time, where instant gratification (the urge to have everything right here and now) is a desire of your user base. If your site visitors need to register first to make a purchase, you may want to simplify your check out process. Remember: Less friction means higher conversions!

Want more tips on how to increase your conversion rates? Then read my article about 11 ways to optimize for more conversions.

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