This is a term you should be very keen of and
track regularly. Conversion rate is simply the number of
people that you need to get to your website to generate a sale.
If you get 1000 visitors to your website each day,
and of those 1000, you get 20 orders, that means 1 out of 50 people
that stop by your website will place an order. So your conversion rate
is 1 out of 50.
You need to know what advertising approach is
generating you the best profit for the advertising dollars you are
spending. If your advertising isn't generating the right profit, or any
profit, then you might decide to drop that method.
Knowing your conversion rate is important
initially so once you know you are getting the right sales per traffic
ratio, you know your site is properly equipped to make that sale and
you can focus on other things.
Conversion rates for online advertising and your
website is very important to know and track to be sure your site is
performing at its top.
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