Metrics to Watch: Conversion Rate

 In Business


Conversion rate is the percentage of users who go on to complete your desired end goal – for example, a sale. So, if your desired action is to sell a pair of shoes, your conversion rate would be the percentage of website visitors that went on to make a purchase.


Conversion rate measures how well your advertising system as a whole is functioning, and often that includes the user-friendliness of  your website. If your conversion rate is high, it means that the process from clicking on an ad, or visiting your website,  to fulfilling your desired end result is effective and easy for users.

This metric is great for measuring your brand’s success beyond the level of ad campaigns. If you’re trying to sell a product, paying attention to something like click-through rate isn’t terribly important if the viewers who click on your ads don’t end up making a purchase. So, if your end result isn’t just to drive traffic to your website, we definitely recommend taking note of your conversions.


Not every brand needs to measure conversion rate, and it’s not necessary to measure conversions on every ad you display. Conversion rate is a very good measure for retail brands with a measurable goal, but less so for companies like CMG, for whom the process of acquiring clients isn’t always measurable through analytics.

While your conversion rate can tell you how well your ad-to-goal process is performing, it won’t be helpful if you want to know the effectiveness of individual pieces of the process. For example, if users must click through four pages on your website to achieve your end goal, conversion rate will tell you how many users fulfilled the whole process, but won’t tell you where you lose the most potential customers. In that sense, conversion rate is a very black-and-white measurement, and you’ll want to pair it with your pageviews and other metrics to get a more complete picture.

If you do decide to measure conversion rate, you’ll need to set up a conversion pixel. This is an added step that you don’t need for other metrics, but since you’re asking your ad carrier (Facebook, Google, Twitter, etc.) to measure consumers’ actions outside of their own platform, you need to set up the pixel as a way to obtain that data. Though it’s another step, it’s very simple – just find your conversion pixel on your ad carrier’s site, and attach it to the code of the page on your website where you’d like viewers to end up.


Utah brand Sparkle in Pink used Facebook ads to successfully increase their sales and brand awareness. They measured conversions in order to see how effectively their ads lead to sales – and achieved 9% more monthly sales. Keeping an eye on their conversion rate helped them to determine which ads worked best for their specific audiences, and how much their Facebook campaigns affected sales.

Was this helpful? Have questions? If you’d like to know more, or to find out how we can help with digital ad campaigns, send us an email at info@

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Amy Libka is CMG’s Crafter of Strategic Communication. Amy combines strategy and creativity to help clients communicate as effectively as possible. She is passionate about clear, effective communication, and enjoys crafting messages that help individuals and groups achieve their goals. She specializes in creating content and managing digital advertising campaigns for a diverse group of clients.

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