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How to define conversion rate?Conversions / Clicks x 100Reach / Impression x 100Clicks /Conversions x 100Impressions / Reach x 100

Question

How to define conversion rate?

  • Conversions / Clicks x 100
  • Reach / Impression x 100
  • Clicks / Conversions x 100
  • Impressions / Reach x 100
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Solution

The conversion rate is a key metric in e-commerce and digital marketing. It is defined as the percentage of users who take a desired action. The general formula to calculate conversion rate is:

Conversions / Clicks x 100

Here's a step-by-step breakdown:

  1. Conversions: This is the number of desired actions taken. For example, if you're an online retailer, a conversion could be a purchase. If you're a software company, a conversion could be a download of a trial version of your software.

  2. Clicks: This is the total number of clicks on a specific link, ad, or page on your website.

  3. Divide the number of conversions by the number of clicks. This will give you a decimal.

  4. Multiply the result by 100 to get your conversion rate as a percentage.

For example, if you had 50 conversions from 1,000 clicks, your conversion rate would be (50 / 1,000) x 100 = 5%.

The other formulas you mentioned (Reach / Impression x 100, Clicks /Conversions x 100, Impressions / Reach x 100) are not used to calculate conversion rate, but they are used to calculate other important metrics in digital marketing such as reach, impressions, and click-through rate.

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