Conversion rate
A conversion rate is the share of people at one step who take the next, such as the share of visitors who buy.
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What does Conversion rate mean?
It is the number who converted divided by everyone at that step. For an online shop a common measure is orders per hundred visits.
A rate on its own says little; how it changes, and how steps compare, says more.
It is worth always dividing the same two numbers, over the same period: if you count per visitor once and per page view the next time, the two rates cannot be compared.
Why does it matter to a small business?
A small business has limited money and time, so it matters where interested people drop out. Many visitors but few orders points to the shop; many quotes but few deals won points to the pricing or the follow-up. The conversion rate shows which step is worth improving before you spend more on advertising.
What does it look like in practice?
Details
Suppose a tea shop in Eger has twenty orders from two thousand page views in a month: one order per hundred views. The owner rewrites the delivery terms so they show on the product page. The next month she looks at the same measure and decides from the change whether to keep the new wording.
How does HelloCRM handle it?
Details
HelloCRM's Orders page shows the shop's 30-day conversion (orders per hundred page views), and reports show movement between stages.
Module: Webshops (paid module, price coming soon).
A CRM for small businesses in Hungary
HelloCRM is an online CRM made in Hungary for small and mid-sized businesses there, in Hungarian and English: the core CRM is free for good, with no time limit and no card, and it can be tried without signing up in a demo company full of example data.
Questions
What is Conversion rate, in one sentence?
A conversion rate is the share of people at one step who take the next, such as the share of visitors who buy.