How to calculate and optimize your conversion rate for small business in 2022

How to calculate and optimize your conversion rate for small business in 2022

optimize your conversion rate

How to calculate and optimize the conversion rate for website business is the question that is frequently asked by those who wish for starting a website business in 2022. An online business has many factors to measure its success. The conversion rate is one of them. If the conversion rate is high that means our online business is making profits.

A high conversion rate tells you that your marketing strategy and web design are working in a positive direction. In this article, you will be getting your answers to questions like how to calculate conversion rate, how to optimize conversion rate, how to track conversion rates, how to increase sales conversion rate, etc.


What is a conversion rate?

Conversion rate can be understood as the criteria that help determine the success behind a company’s sales and marketing efforts. The conversion rate provides numerical insight behind the frequency of website visitors and other actions in the form of a percentage. Online business owners may have many types of conversion goals they’d like to accomplish.


What is a conversion rate


Types of conversion

Let us have a look at the possible types of conversion for online small business. Once you have got the complied data in front of you, it’s easier to calculate the conversion rate. Some types of conversion are:

  • Online shopping
  • Information requests
  • Personal or business account creation
  • Business calls
  • Digital asset downloads
  • Site engagement
  • Newsletter sign-ups

Types of conversion


Types of conversion rates

Let us discuss the types of conversion rates. Once you have received traffic to your website, you can separate metrics according to the types of conversion rates you want to know about. Below are two of the most common conversion rates:


  • New visitor conversion rate: New visitor conversion rate is calculated by looking only at the new visitors of the website or visitors who are interacting with your website for the first time. Ease of website navigation, content clarity, and the website’s overall value influence this rate.


  • Return visitor conversion rate: When a visitor returns to a website, he/she may be returning to complete a transaction or learn more about your company. Return visitors are often ready to convert because these site users have already found you once. There are maximum chances that they purchase the product they have seen earlier.

Types of conversion rates


How to calculate a conversion rate

Calculating the conversion rate is a simple process that follows a basic formula called as conversion rate formula. Below are some simple steps which help to calculate conversion in relation to purchases on an e-commerce website:

How to calculate a conversion rate

  1. Use this formula as a reference point: Conversion rate = conversions/total visitors * 100
  2. Divide the total number of conversions by the total number of visitors to your website.
  3. Multiply this number by 100.
  4. The number you get is your conversion rate.
  5. Round up if needed, then, add the percentage sign.

Let us understand how to calculate conversion rate by this example: Let’s suppose you have 55,000 visitors to your site last month out of which 800 people purchased some items from your site. Then you have conversion rate of 1.45%. The equation goes like this-


55,000 / 800 * 100 = 1.45%



How to track a conversion rate

Tracking conversion rate is as important as calculating a conversion rate. You might be looking to track the number of visitors who signed up for your newsletter or the number of leads generated from a free eBook your team created. Most companies follow a weekly or monthly tracking regimen to stay focused on their conversion targets. Increasing conversion rates is a top priority in digital marketing. Tracking conversions helps you stay in the know when implementing digital marketing strategies, which also helps you gain a competitive edge over others in the business who may not be paying attention to the metrics.

How to track a conversion rate


How to optimize a conversion rate

There are several ways by which you’re small or big business can optimize its website to generate more conversions. Conversion rate optimization focuses on strategies that enhance a website’s conversion rate using the site traffic that already exists. To receive maximum conversions, you will have to do a few things to test your website. Some are given below:


  • Prioritize your landing page: It is very important to first know which page of your website you want to target for conversions. Your selected and finalized page should be attractive and easily visible to targeted customers. Many businesses use their homepage as the main landing page for their advertisements, though others focus on special pages created for current sales that show all on-sale items.


  • Conduct an A/B test: A/B testing is a quick and easy way to do CRO when your website is already generating lots of traffic. Create two types of landing pages that you will refer to as option A and option B. Send half of your traffic to the A page and another half to the B page. Online CRO software makes this process very easy. Once you have decided which elements of your site make the biggest impact, you can try experimenting with a variety of CRO tests.


  • Establish trustworthy website: Your website should be regarded as a trustworthy website among visitors and customers. Make sure you place the “About Us” or contact information in a visible place on your website. Customer queries should be answered in a timely manner. If your business receives the large number of queries, you can keep more people to answer their queries by calls or messages. Provide customer reviews, client stories, or case studies on your website so that people have the information they need to complete conversions with confidence and faith.


By following these ideas your sales conversion rate will be greatly enhanced and you will reach maximum conversion rate optimization for your website business.

Leave a Reply

Your email address will not be published. Required fields are marked *

Get a free consultation

Discuss your ideas with us. We have the expertise, the resources, and experience in a wide range of business domains. We will handle all of your technological requirements so you can focus on your business


Mon - Fri 10:00 AM - 6:00 PM EST