What is Conversion?
TL;DR
A conversion is when a visitor takes a desired action: buying a product, signing up for a newsletter, filling out a contact form, or any other goal you define.
Example
You have 1,000 visitors to your website. 30 of them buy something.
Your conversion rate is 3% (30 ÷ 1000 × 100).
Types of conversions:
- Macro conversions - The main goal (purchase, signup, booking)
- Micro conversions - Smaller steps toward the main goal (adding to cart, watching a video, downloading a guide)
Conversion rates vary by industry:
| Industry | Typical Conversion Rate |
|---|---|
| E-commerce | 1-3% |
| SaaS | 3-7% |
| Lead generation | 2-5% |
| Landing pages | 5-15% |
A "good" conversion rate depends on your context. A 2% rate might be excellent for luxury goods but poor for a free newsletter signup.
Explanation
Conversion Rate Optimization (CRO)
CRO is the practice of increasing the percentage of visitors who convert. Instead of just getting more traffic, you make better use of the traffic you have.
What Affects Conversion Rates
Value proposition - Is it clear what you offer and why it matters?
Trust signals - Reviews, testimonials, security badges, money-back guarantees.
Friction - Every extra step, form field, or point of confusion reduces conversions.
Speed - Slow pages lose customers. Each second of delay can reduce conversions by 7%.
Call-to-action - Is it clear what you want visitors to do? Is the button visible and compelling?
The Conversion Funnel
Visitors don't convert immediately. They go through stages:
- Awareness - They find your site
- Interest - They browse, read, explore
- Desire - They consider buying/signing up
- Action - They convert
Each stage loses some people. Your job is to minimize those losses.
Why It Matters
For Business Owners
Leverage your existing traffic. Doubling your conversion rate has the same effect as doubling your traffic, but it's often easier and cheaper.
Math that matters:
- 1,000 visitors × 2% conversion × 500 kr average = 10,000 kr
- 1,000 visitors × 4% conversion × 500 kr average = 20,000 kr
Same traffic, double the revenue.
Small changes, big impact. Sometimes a different headline, button color, or simplified form can significantly improve conversions. That's why A/B testing is so valuable.
Track the Right Conversions
Not all conversions are equal. Focus on conversions that actually matter to your business. 1,000 newsletter signups mean nothing if none of them ever become customers.
Need help with your digital project?
We build websites, apps, and digital solutions for businesses.
Get in touch