Understanding and using the conversion rate correctly

What is a conversion rate?

The conversion rate is the percentage of visitors who perform a specific desired action. These actions are called conversions.

The English term conversion rate means German conversion rate (... from visitors to customers).

What is a conversion?
A conversion is the successful completion of a desired action, which could be: a purchase, a completed and sent contact form, a newsletter subscription, a download or a registration.

So if five out of 100 people who visit your site buy something, your conversion rate is 5%. It sounds simple and yet is full of significance.

Because the conversion rate not only shows you how many people visit your site, but also how well the site works. It helps you to see whether your website is achieving what you actually want, i.e. whether visitors are simply looking or even taking action.

Types of conversions

A conversion doesn't always have to be a purchase. A distinction is made between so-called micro-conversions and macro-conversions. The distinction helps you understand your visitors better and optimize your content more specifically.

Macro conversions

Macro conversions are the big goals. What it all boils down to. For example:

• A purchase in your online shop
• A completed registration for a paid subscription
• A request via your contact form

These conversions are measurable, unambiguous and often directly linked to sales. They are usually the main goal of your site, i.e. what you ultimately measure success by.

Micro-conversions

Micro-conversions are minor actions that precede macro-conversions. These include:

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• Someone clicks on a product
• Scroll depth of more than 75% on a landing page
• A user is watching a video
• View shopping cart, even without a purchase
• Time spent above a specific threshold (e.g. more than 2 minutes on a page)
• Redirecting to a product detail page
• Add product to wish list
• Download a PDF or brochure

These small actions show that someone is taking your offer seriously. They are not the end goal, but they are a clear signal that there is interest there. And the more micro-conversions you recognize and analyze, the better you understand where there might be a problem in the process and where there is potential for improvement.

Both types of conversions are important. Together, they give you a realistic picture of how users are behaving on your site.

What is the conversion rate for?

The conversion rate is the indicator of the success of your website. It shows you whether visitors are just looking or whether they are also taking action and therefore your offer is taking effect. It helps you to evaluate the impact of changes, to optimize them in a targeted manner and to increase earnings.

Evaluate the relationship between visitors and buyers

You can get thousands of visitors to your site, but if no one buys, signs up, or enquiries, it's of little use to you. The conversion rate gives you a clear view of the relationship between effort (traffic) and results (goal achievement).

example:

• Website A achieves 50 conversions with 1,000 visitors per month.
• Website B achieves 100 conversions with 10,000 visitors per month.

In absolute terms, Page B achieved 100% more conversions. However, this required 10 times as many visitors to the site.

• Website A has a conversion rate of 5%
• Website B has a conversion rate of 1%

On website A, a fifth of visitors are therefore enough to achieve the same number of conversions. It is more powerful in its ability to convert and, with 10,000 visitors, would also generate significantly more revenue than Website B.

Tip: You can find more calculation examples in our article on Calculation of the conversion rate.

The conversion rate as a KPI

The conversion rate is a tough KPI. It does not measure interest or potential behavior, but actual action. This makes them a particularly reliable indicator of the quality of:

• User navigation and site structure
• Content and reasoning
• Trust and clarity in the offer
• technical implementation (e.g. loading time, mobile UX)

While many other metrics provide indirect clues, the conversion rate directly shows whether a page is meeting its goal. It is therefore an objective tool for evaluating website performance.

measurability and comparability

Another advantage: The conversion rate is precisely measurable and can be compared over time, between different pages or campaigns. This makes it possible to:

• A/B testing and data-driven decisions
• Monitoring the success of relaunches or redesigns
• Assessing the quality of traffic sources (e.g. Google Ads vs. social media)
• Prioritize optimization measures
• The conversion rate makes it clear where you have real leverage and where you may only be working on symptoms.

Basis for optimization

If you know your own conversion rate, you can work specifically to improve it. Without investing more budget in advertising, much more can often be achieved through better wording, clearer structures or less distraction.

Tip: You can find out more about this in our article on Conversion rate optimization.

Where are conversion rates recorded and analyzed?

Conversion rate monitoring and evaluation is used in e-commerce, as well as on SaaS and software platforms, in B2B marketing, service providers and in the media sector. It is used wherever a website has a clear goal, be it sales, registration or collecting contacts (leads).

Ecommerce

Conversion goal: Kauf

Typical CR: 1.5% — 3% (well-optimized shops even over 5%)

In online retail, the purchase conversion is The central value. CR depends heavily on the product, the target group, shipping costs and usability.

SaaS and software platforms

Conversion goal: Freemium registration, trial, or demo

Typical CR: 3% — 7% (top values up to 10%)

Here, the focus is on the first hurdle: someone should register. Especially with freemium models, the barrier to entry is low, which can result in higher CRs.

B2B websites & lead generation

Conversion goal: Contact, white paper download, appointment

Typical CR: 1% — 3% (highly qualified leads often below)

In the B2B sector, target groups are smaller and more demanding. In return, the value of a single lead is usually high.

Service companies

Conversion goal: Request, consultation, filling out a form

Typical CR: 2% — 5% (heavily dependent on trust building and supply)

For service providers, specific inquiries count. The CR here depends particularly heavily on the positioning, clarity and credibility of the website.

Media & publishers

Conversion goal: Newsletter subscription, interaction

Typical CR: 1% — 4% (e.g. for newsletters; paid subscriptions significantly lower)

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User engagement is often the focus here. Subscription conversions are harder to achieve than newsletter registrations, for example, but they are also more valuable.

The conversions and conversion rates on your website don't match the effort you put in?
Maybe it's time for a neutral look at your content, landing pages, and the entire website. Together, we can develop a roadmap that allows your sales to rise again. Get in touch with us and we'll show you how we can help you.

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