Vareto Finance Glossary

Website Conversion Rate


Website conversion is achieved when a user completes a desired action on a company's website, for instance, making a purchase or entering contact details through a form. Business websites are designed to generate user conversions that lead to sales/revenue. There are two types of website conversions:1. Micro Conversions: A conversion that gets the business a step closer to the end goal. For instance, users subscribing to a newsletter.2. Macro Conversions: This occurs when a business achieves an end goal like making a final sale or enrolling a customer for paid subscription.Website conversion rate is a metric that measures website conversions and offers quantitative insights to businesses.


Website conversion rate = (number of conversions/total number of visitors)*100A business must divide the number of conversions by the total number of visitors. Once multiplied by 100, it gives the website conversion rate.Suppose Vareto's web page got 500 visitors and 17 sales this month. Its website conversion rate will be = (17/500)*100 = 3.4%

Why it matters

This metric helps companies know how well-optimized their website is and allows easier identification of potential opportunities. A higher website conversion rate means: 1) company is attracting the right users 2) the marketing strategy is able to connect with the audience3) the user experience is easierA lower conversion rate may be due to issues such as a slow load time, irrelevant or boring data,the wrong audience being targeted, or a product/service that does not drive enough value for users.