Is Your Conversion Rate Wrong?

According to Web Analytics Association (WAA) standard definition, a conversion is a visitor completing a target action. Conversion rate is calculated by total number of visitors completing a target actions divided by a “relevant denominator” (Sometimes it is total number of target actions divided by a “relevant denominator). The key here is “relevant denominator”. This is often ignored by many organization and they tend to use the default denominator provided by their Web Analytics tool provides. The most common denominator used by most of the tools is either total visits or total visitors. If you are an eCommerce site then potentially every visitors or visit is a target for conversion and “Total Visits” or “Total Visitors” as a denominator might make sense. However if your site is a non-eCommerce site and conversion to you means getting people to register on the site then using a denominator like total visits or total visitors to calculate conversion rate, wrongly assumes that all ...