## How To Calculate Your Websites Conversion Rate

On this blog I discuss ways to improve your conversion rate, but what if you do not know how to correctly calculate your current conversion rate? In this post I hope to help you understand how your website is currently converting.

How to calculate your conversion rate?

Firstly you need to define what your conversion is, it would be making a sale through your eCommerce website, it could be generating leads through a sign-up form or simply getting visitors to subscribe to your newsletter.

It is not uncommon for websites to have more that one conversion that they are tracking, such as making product sales and sign-ups to newsletters.

Once you have defined your conversion you need to ensure that you are able to track it with your analytics software.

The maths for calculating your conversion rate is relatively simple from here, you need to divide the number of conversions by the number of visitors to your website, then times the result by 100 to get your conversion rate percentage.

If my website had 100 conversions and 10,000 visitors, my conversion rate would be calculated as follows:

(100/10,000) * 100 = 1% Conversion rate

Hopefully you are now able to calculate your websites current conversion rate to help you set your targets for how much you want to improve it by.

## What Is Multivariate Testing (MVT)?

In the world of conversion rate optimization there are a few terms that you will hear again and again. One of those terms is Multivariate Testing, but what is it?

What is Multivariate Testing?

As the name suggests this is about testing multiple items on a webpage. It is the process in which more than one element on the page is changed and tested against a control version, an easier way to think of it is that it is simply multiple A/B tests taking place on one page at the same time.

With multivariate testing the only limit on how many elements can be tested at one time is the amount of traffic the webpage receives and how long the test can run for, with all testing you are looking to reach a statistically significant result and that requires enough traffic to go through each variant so websites with smaller levels of traffic will have to run their tests for considerably longer.

Multivariate testing is very much an iterative process where the results of each test help to plan what should be tested next as there are many elements that are being changed on the webpage it is all about finding the right combination of elements to deliver the greatest increase in conversion rate.

The biggest benefit of using multivariate testing is that it can allow you to perform more tests in a shorter period of time as you are testing more than one thing at a time. This can be useful for larger websites who want to make quicker gains, or where there are a lot of elements that need to be tested but not enough time to run them all individually.

The Internet is full of success stories where people have used multivariate testing to dramatically increase their conversion rates, how will it work for you?

Have you tried multivariate testing? How did your tests go? Do you have any questions about multivariate testing? Feel free to share your views below.

## What Is A/B Testing?

If you run a website or are involved in conversion rate optimization then you are certain to have heard about A/B testing, but what is it?

What is A/B testing?

In its simplest form A/B testing is the process of testing a new variation of a webpage against the current version in an attempt to increase the conversion rate of a defined goal.

An example would be an e-commerce website who may want to test a different ‘Add to Basket’ button on their website. They create a new version of their product page, this is usually called ‘the challenger’ or ‘the variant’. When visitors arrive at the website they are split with one set seeing the original page and the other set seeing the new variant page.

The split is usually 50/50, however it is no uncommon to see 75/25 or 90/10 for riskier tests. Your split percentage will largely depend on the amount of traffic to your website as you need to ensure that there is enough volume going through each split in order to reach a significant result. I would advise anyone new to A/B testing to stick with 50/50 until they are more confident with calculating the number of people required through their split.

Once the test has received a sufficient amount of traffic, analysis can then be undertaken to calculate the winning split. The winning split is generally the split with the highest conversion rate  as this split will convert more visitors into buyers. One key consideration is the significance of your test results, you need to be sure that enough data has been collected to provide a statistically significant result. Tools such as this A/B Test Significance Calculator are great for checking if you are in a position to end your test and select a winner.

Once you have a significant response you can select your winner and put that variation live across your website. You are then ready to start your next test.

If you are new to A/B testing then it is good to know that you should generally only be running one test on your website at any one time as running more than one test may produce faulty figures as the tests may conflict with each other.

Hopefully this helps to answer the question of what is A/B testing and you are ready to start testing on your website.

If you have any questions regarding A/B testing, feel free to leave them below.

## What Is Conversion Rate Optimization?

It is a question that I have been asked many times in the previous couple of months and it is about time I put it into a formal post.

What is Conversion Rate Optimization?

In its simplest form, Conversion Rate Optimization (CRO) is the practice of trying to get more of a websites visitors to complete a defined goal. Many website owners are looking to drive more traffic to their websites to generate more revenue, smart website owners are trying to convert more of the visitors that they are already getting through Conversion Rate Optimization.

A conversion can come in many forms and for many websites it is different, some of the most common ‘conversions’ or ‘goals’ are:

• Product purchase
• Submitting a contact form
• Requesting an information pack

A lot of websites have more than one goal/conversion which is not a problem.

How to calculate your websites conversion rate?

The calculation for a websites conversion rate is relatively simple. First you need to find how many people performed your desired goal, then divide that by the number of visits to your website, you then multiply the result by 100 to get a percentage. Example, if my website sells shoes online and 5 people have bought today and I  have had 100 visitors to my website, the conversion rate would be calculated like this:

(5/100)*100 = 5% Conversion Rate

Once you know your existing conversion rate you are then in a position to set yourself a target conversion rate that you are looking to reach through conversion rate optimization.

What’s involved in conversion rate optimization?

Conversion rate optimization can take many forms depending on the makeup of the website and the goal that is to be optimized. There are however a couple of concept that are universal to conversion rate optimization, these include A/B testing and Multivariate testing that allow you to test potential improvements vs the existing website.

Conclusion

So, to sum things up, Conversion rate optimization is the process by which website owners look to increase their revenue/ conversion rate without having to drive more traffic to the website.

Over the last couple of months I have been working solely in a web analyst role where my job is to optimize a website in the car insurance industry to increase conversion rates and usability.

Whilst I have been involved in Conversion Rate Optimization (CRO) for over 5 years, this is the first time that I have held a role that has the sole focus on optimizing a website rather than developing one.

Now that my focus is firmly on website optimization I have changed the focus of this blog so that it is also targeted to website optimization and more importantly conversion rate optimization.

With that in mind I am looking to get people on board who would like to optimize their websites as I am looking to run case studies and website reviews to help demonstrate many of the points that will be covered on this blog. This means that I will recommend changes to your website to improve usability or conversion rates, as well as possibly running A/B or Multivariate tests to show what effect certain changes can have on a website.

In a nutshell I will help you to generate more revenue or leads from your website for FREE. In return I ask that you let me write about the work that we have done on your website and the amazing results that we achieve so that others can learn from what has been done.

There is nothing to lose and possibly a lot to be gained so why not put yourself forward and see what can happen!

The requirements for being considered for this are very small: