Conversion Rate

This refers to your rate of conversion. First you need to identify what is considered a conversion for you. What does your Web site need to do? Make a sale, generate a lead, or get the phone to ring. So, for example, if you want a visitor to buy a widget from your site and one in twenty visitors to your site buy a widget, then your conversion rate is 5%. Improving conversion rate is a key element to succeeding with a business on the Web.

Conversion rates also play heavily in pay per click advertising models such as Google AdWords and Yahoo Search Marketing (formerly Overture). If you improve your traffic, return on investment (ROI), and your conversion rates then you should be realizing improvements such as more sales, leads and phone calls.

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