What is Conversion Rate to Small Business?

Updated: Aug 26


Conversion Rate

You may hear whenever the topics about marketing come up, it’s always the term “conversion” that follows.


Conversion is all about converting, but what is it exactly?

What do you need to convert?

And why is it so important?


First, let’s talk about the conversion rate.


What is conversion rate?

Conversion rate is the percentage of visitors that come to your landing pages or your websites that convert (aka, do what you want them to do). Depending on your goals, conversion is not just about sales (aka. purchasing your products or service). It can happen in many ways, including:

  • Downloading your resources (templates, eBook, etc.)

  • Submitting a form (contact us form, lead gen form, etc.)

  • Calling your business

  • Engaging with your chat (chatbot or representative)

  • Signing up for subscriptions (newsletter, either paid or free)

And many more.


This should give you some ideas on what conversion is. Conversion is measured with the intent to help your business know what can be improved, and how can you change your visitors into paying customers.


When I’m saying conversion is measurable, it means that yes, it can be calculated. So how can we calculate it?


All you have to do is to divide the number of conversions you get in a given time frame with the visitors of your landing page or website, then multiply it by 100.



That is easy. However, if you want to know what these numbers mean to your business, you have to sit down and analyze it.


Why is conversion rate important for businesses?

Conversion rate is important to your digital marketing plan. By monitoring your conversion rates, you can see how it drives results for your business.


A high conversion rate means your campaign is succeeding in getting leads to convert. A low conversion rate indicates that you need optimization to improve it.


How can you know if your conversion rate is high or low for your businesses?

Actually, there’s no “exact” conversion rate across industries and businesses. 3% can be a high conversion rate for a car brand, but if you have that for a clothing brand, then you have a big problem there.


If you want to know what goals should you set for your business to convert, you should conduct surveys and research more about the industry and business around you to make up an ideal campaign for your business.


What does it mean to have a low conversion rate for your businesses?

You’ll find soon enough that your business’ conversion rate is not that “ideal” and lower than average. You still can improve it over time, don’t worry!


What leads to a low conversion rate?

There are two factors that most probably affect your low conversion rate.

  1. Your landing page is not a UX design, which means it’s not optimized for users to navigate and purchase.

  2. Your website doesn’t show enough value for your products or services to your customers.

Of course, the problems are not just this, but these two factors contribute the most to the low conversion rate, which can be improved immediately through website optimization.


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