Do you want to boost your SEO efforts while understanding your customers better?

Calculating conversion rates in Excel lets you conveniently measure your marketing success. With this feature, you can quantify the percentage of visitors who take a desired action, such as making purchases or subscribing to a service.

Moreover, Microsoft Excel is an excellent tool for determining how many people buy what you sell. This guide will help you calculate conversions in Excel.

Read on as we cover the following:

• What Is a Conversion Rate?

• Calculate Conversion Rates in Excel

• The Impact of Conversion Rates on the Bottom Line

• Final Thoughts on How to Calculate Conversion Rate in Excel

• Frequently Asked Questions on How to Calculate Conversion Rate in Excel

What Is a Conversion Rate?

The conversion rate is the percentage of website visitors who complete a desired goal. It can be calculated by dividing the number of ad interactions by the number of conversions.

Read more: How to change currency in Excel.

Calculate Conversion Rate in Excel

The image below represents the conversion rate formula:

For example, out of 240 visits to a product page, we made 50 purchases.

1. Gather the data you need.

2. In the conversion rate column, type the equal sign.

3. You can use their cell reference or the values only to convert rates, then put a division sign between values.

4. Press Enter to get the answer.

5. To adjust the format of the answer of the conversion rate, go to the Home tab and click the percent style option under the number group.

You now have learned to get the conversion rate.

A 21% page conversion rate for 240 visitors is good if you sell something expensive. However, if you are selling t-shirts, you'd need a higher conversion rate. The data will tell you if your marketing efforts are successful. 

Moreover, calculating conversion rates can differ based on the channel, sales cycle, and marketing funnel stage.

What is considered a good conversion rate depends on factors such as pricing, average order value (AOV), and customer lifetime value (LTV).

So, examining the impact of traffic sources and customer journey stages.

For example, if you choose to use Facebook Ads, which have a high cost per acquisition (CPA), you must have good conversion rates to attain a positive return on ad spend (ROAS).

It's more realistic to expect a decent but not high conversion rate from search traffic.

Meanwhile, if you get 100,000 unique visitors every month and convert 1.2% of them into customers, that would be 1,200 new customers.

Once you've reached this point, there are certain steps you can grab to improve your profit:

• Increase search traffic

• Increase the conversion rate from organic traffic.

It is essential to examine the context when you want many people to discover your website. Focus on making new pages and information that have worked well in the past.

Moreover, conversion tracking can be used to get useful information about marketing and customers. If you are a Google Sheets user, you can read our guide on how to calculate conversion rates in Google Sheets.

The Impact of Conversion Rates on the Bottom Line

To build a more profitable business, how do marketers use conversion rates?

Remember that there is no standard or good conversion rate. A good conversion rate for you is an improvement from the previous month. Ultimately, you determine what success looks like.

1. Comprehending the significance of conversion.

A lot of things can influence the value of a product. An example is Huel's protein bundle. We can determine its worth by looking at its conversion rate.

• The conversion rate for subscriptions is 0.59%,

• The conversion rate for one-time purchases is 1.04%.

It can seem like one-time purchases are the best when you look at the numbers. However, it is important to consider how customers behave and how much money they give over time.

Example:

People sign up for a product and use it for six months. That means they will have given the company $65 each month, or $390 ($65 x 6 months).

Meanwhile, people who buy the protein bundle ($72) in one purchase also get three other products worth $150, which happens over 12 months.

The customers will get a loan of $222 to pay back over 12 months--that is $168 less than they need to pay for subscriptions.

Remember that email marketing and retargeting costs must also consider when determining how much money will generate.

This exercise shows how essential it is to understand what customers do.

If a customer spends more money when they do something different, focusing on that action is important even if fewer people do it.

2. Improving your understanding of conversion rate data.

Conversion rates measure how well your marketing strategy is working. Moreover, it helps you see if people like what you are doing or not.

High conversion rates are good, but they can also inform you about what to change in your marketing plan.

You can get insights from the data, especially when they answer important questions like the following:

• Overall conversion rate: What percentage of people who see our ads take a specific action?

• Acquisition conversion rate: Which advertising method successfully gets people to buy something? Why does it work well?

• Page-level conversion rate: Which pages and content on our website help people do what we want them to do? Why are these landing pages and content more successful than others?

• Campaign conversion rate: Do ads that show to certain people help get more people to buy? Which ads usually work best to get more buyers?

• Keyword conversion rate: Should we spend more money on ads that help us make sales?

Final Thoughts on How to Calculate Conversion Rate in Excel

Calculating conversion rates in Excel is a valuable skill for any business or marketer.

Excel provides a user-friendly and versatile platform for analyzing and interpreting data, allowing you to gain meaningful insights into your marketing performance.

Visit Simple Sheets for more easy-to-follow guides and examples, and remember to read the related articles section of this blog post.

Subscribe to Simple Sheets on Youtube for the most straightforward Excel video tutorials.

Frequently Asked Questions on How to Calculate Conversion Rate in Excel

How can I leverage your conversion rate formula to optimize marketing efforts?

To leverage your new growth and conversion rate optimization, gathering high-quality data and prioritizing your experiments using insights about conversion rates is helpful.

How does Google Analytics help in calculating conversion rates?

Google Analytics provides conversion rate data for different periods, allowing you to analyze and compare performance over time.

Why do companies often change their marketing strategies and conduct A/B testing?

Companies often adjust their marketing strategies and perform A/B testing to enhance conversion rates.

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