Conversion Rate Formula

Conversion Rate Formula:

What Is The Conversion Rate Formula?

The Conversion Rate Formula is the process of testing and optimizing your website/landing page for a better user experience to ultimately drive more sales.

What Is A Conversion?

A conversion is anything that you are optimizing for on your website.

This could be any of the following:

• Purchase

• Lead

• New Appointment

• Webinar Opt-In

• Make a Phone Call

• Downloading a Lead Magnet

What Is Conversion Rate Optimization?

Conversion Rate Optimization is the art of split testing specific variables on a website to dramatically increase the amount of leads and sales generated.

Making sure your website is fully optimized before you start dumping money into paid ads is crucial if you don’t want to lose a ton of money.

How Can I Increase My Conversions & Why Is It Important?

If you are wanting to optimize your website for more conversions you are going to want to step into your consumers mind for a bit.

What are they thinking about?

What could you do to your website to make your consumer more interested in converting?

For example, let’s say that I am interested in buying a new pair of shoes.

So first, I go to Google and type in ‘running shoes’.

I see a Google Shopping Ad come up with a super cool pair of shoes so I click on it.

I’m waiting…

10 seconds later the page finally decides to load.

It looks super outdated, the design isn’t too pleasing on the eye, and there is no real information about the shoe.

Beyond disappointed, I decide to go back and click on the second ad.

The second website loads super fast.

When it does, it has an eye catching logo and none short of a dozen product images that sell me on the shoes.

It displays the product and all of its necessary features, removing any reasons in my mind why I wouldn’t buy them.

So I decide to take out my wallet and make a purchase.

The difference between the first ad and the second ad is the bridge that conversion rate optimization solves.

If the first website would have been optimized for conversions in the first place they would not have lost my sale.

How Can I Calculate My Conversion Rate?

The Conversion Rate Formula is ‘The Amount of Sales or Leads Generated’ divided by ‘The Amount of Website Visitors’.

You can calculate your conversion rate by plugging in your online stores numbers into this formula:

Conversion Rate Calculator:

( X Amount of Conversions ) / ( X Amount of Unique Website Visitors ) = ( Conversion Rate Percentage )

eCommerce Conversion Rate Example: 5 Sales / 100 Unique Website Visitors = 5% Conversion Rate

Conversion Rate Diagnosis:

Are you getting a ton of visitors to your online store but no sales?

This is one of the biggest problems for online business owners.

Getting customers to your store is not always the hard part.

Getting them to make a purchase when they visit your store is a whole new obstacle to tackle.

To start off, there are a large number of reasons why people do and don’t buy.

From the colors on your website to your product images to your store layout.

But, after analyzing over 250 Shopify websites and A/B split testing just about every possible variable; the 5 biggest components we’ve found that will expose the biggest change are:

• Product Images

• Product Descriptions

• Website Design

• Loading Speed

• Credibility

1.) Product Images:

Having compelling product images is essential for every eCommerce brand.

No matter what you are selling, consumers want to see their products in as many ways as possible.

By adding in model photos, videos, demonstrations, etc. you can evoke more emotion from your consumer, leading them to a purchase.

Another feature that consumers appreciate is the ability to zoom in and out on the product images.

This gives them the chance to see the product almost as if they were in store looking at it in person.

2.) Product Descriptions:

Your product descriptions are the key to making it all happen.

Your ads have already done the job of convincing the consumer they want the product enough to click through.

Now, all your product descriptions have to do is solidify in the consumers mind the reasons why they ‘NEED’ to have the product.

By writing your descriptions in a way that makes them feel like they need the product now rather than later will create a sense or urgency.

When there is a sense of urgency, things get done.

At Aces Media, we have a few underlying guidelines we follow in our ad copy to evoke certain emotions in the buyer that result in action.

One of those guidelines is to make the pain of not buying now far greater than the pain of buying your product.

Doing this will reduce your bounce rate by nearly 50-100%.

3.) Website Design:

Your website design is what leads your consumer to the sale.

The better your website is at moving your consumer from an interested viewer to a paying customer, the better off you’re going to be.

When designing your website or landing page, keep these 3 things in mind:

• Highlight the Call to Action

• Split Test Various Different Layouts & Styles

• Reword and Resize Your Website Copy

4.) Website Loading Speed:

The loading speed of your website is an extremely important factor in your conversion rate because it can make or break your consumer experience.

On average, consumers will wait 2-3 seconds for a website to load before bouncing.

If you are spending money on ads to drive traffic to your website and it takes 7 seconds to load, you would be wasting money.

Facebook and Google Ads would show that you are getting clicks to your website, and it may even say there was a website impression.

But, due to your website loading speed, they may not have ever even seen it at all.

To conclude, when continually optimizing these 5 things, overtime you will start to improve your conversion rate significantly.

BONUS: What is Drop Shipping (The Ultimate Guide to eCommerce)

5.) Credibility:

Authenticity is one of the biggest factors for online business and eCommerce.

According to a case study done by Express Watches, they experienced a 107% increase in sales just by implementing the credibility piece.

Prior to running this conversion rate optimization test, the Express Watches product page looked like this:

Conversion Rate Formula (Conversion Rate Optimization Case Study) | Aces Media

The only change they made for this test was switching the ‘Never Beaten on Price’ badge to an ‘Authorized Dealer’ badge.

This is what the product page looked like after the change:

Conversion Rate Formula Case Study (Conversion Rate Optimization) | Aces Media

As you can see, that was a very small change.

But, it made a dramatic impact that literally doubled their business.

Click here to check out the Express Watches Conversion Rate Optimization Case Study in full detail.

DISCOVER: Growth of eCommerce in 2019

What is Color Psychology?

According to Crazy Egg, “Color Psychology is the science of how color affects human behavior. Color psychology actually is a branch of the broader field of behavioral psychology.”

In a recent study done by, Satyendra Singh, she determined that it only takes a customer 90 seconds to form their opinion about a new brand or product.

Over 60% of that opinion is determined solely by the color of the product itself.

Due to this reason, color psychology plays a huge factor in the conversion rate formula but is highly overlooked.

Conversion Rate Formula (Color Psychology)

How To Use Color Psychology in Optimizing Your Conversion Rate:

Color psychology is about evoking emotion through your website design, company logo, and your product.

Some examples of companies who use color psychology in their branding:

Facebook – Blue for Trust

Google – Primary Colors: Blue for Trust, Red for Excitement, Green for Peace, and Yellow for Optimism & Clarity

Microsoft – Primary Colors: Blue, Red, Green, Yellow

eBay – Primary Colors: Blue, Red, Green, Yellow

Nintendo – Red for Excitement

Apple – Grey & White for Neutral Balance

Nikon – Yellow for Clarity

Whole Foods – Green for Health

Amazon – Orange for Friendly

For a Complete Guide on Colors and their Attached Emotions, click here.

How To Track Your Conversion Rate:

Google Tag Manager offers Conversion Goal Tracking making the management of your optimization campaigns much more effective.

For Website Reporting, Google Analytics is a tool that allows you to track and measure your online marketing ROI and website traffic.

Google Analytics is also the #1 software tool used for tracking conversions since it is the most powerful search engine.

Facebook Ads offers a custom tracking pixel that you can place on your website to track and measure customer demographics. This is one of the most powerful tools since Facebook can match each user to the profile on their platform for retargeting.

What Is A Good Conversion Rate?

The average conversion rate in the eCommerce industry is 2.9%.

However, some eCommerce stores are converting at 10% or higher.

Given both of the previous statistics, a ‘good’ or ‘average’ conversion rate would be anywhere from 2-4%, anything higher is going to be highly profitable.

But, if you are already sitting at a conversion rate of 2-4%, don’t get complacent.

There is always room for improvement. Especially when it comes to that conversion rate.

Bottom Line:

The difference between the websites that convert extremely high, 5% and above, and those that convert below 2% is that the high converting websites have two crucial things that work in conjunction with each other.

1.) Their Targeting / Their Messaging

2.) Their Product Page / Landing Page

When you get laser focused with your targeting, only those who are highly interested in your product will be seeing your ads.

This cuts out a lot of wasted ad spend and impressions, while also improving the quality of website traffic.

Once the consumer has clicked through to your website they have already committed to half the sale.

The only the left to do is have your landing page seal the deal and get the consumer to make the purchase.

By making your checkout process as streamline as possible, it can remove several steps where a potential buyer could drop off.

So, when highly qualified traffic is running to a well oiled and optimized product page, the conversion rates are going to climb above that 5% mark.


If you are interested in having Aces Media setup, track, and optimize your conversion rate for any time period, please Contact Us Today!

Also, if you are interested in learning more about Pay Per Click Advertising, Conversion Rate Optimization, and eCommerce, check out the rest of our blog: Aces Media Blog

What are your thoughts on the conversion rate formula and the process of conversion rate optimization? Am I missing any crucial information out of the article? I’d love to hear your thoughts down below.

Conversion Rate Optimization Formula | Aces Media
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Conversion Rate Optimization Formula | Aces Media
Conversion Rate Formula: The Amount of Visitors to Your Store (Divided By) The Amount of Sales You Generate. Calculate & Improve Your Conversion Rate.
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Aces Media
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4 Responses to Conversion Rate Formula

  1. Andrei

    What is the best way to optimize for conversions on Shopify with the Booster Theme? I’m having trouble figuring out if its my Facebook ads or my Shopify store that is hurting my conversion rate.

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