Get a better handle on what you’re tracking and why. Here’s a good place to start.
Dear Jeff, I track conversion rates on our website. A consultant says I need to track take rate, too. What is take rate, and should I care? —Shari Rosen
Conversion Rate is the ratio of the people who took a particular action compared to the total number of people who could have taken that action. Typically the action is a purchase but it could also be a newsletter sign-up, a request for more information, downloading a demo, etc. How you define “conversion” depends on your goals.
For example, say you send an e-mail promotion to the 2,000 people on your mailing list. You want them to click the link in your email and visit your website to learn more about the offer. 170 people click the link. 170/2,000 = .085, or 8.5 percent. Your conversion rate was 8.5 percent.
Of course “converted” can mean different things. In the example above, your goal was to get the people on your mailing list to come to your website and check out your promotion. Since that was your intended action, the people who came to your website as a result of the e-mail are considered a conversion.
…to read this article in full, visit leading US small business resource, Inc.