Making every marketing dollar count through conversion rate optimization.

Acquiring new customers isn't getting any cheaper. Between 2023 and 2025, customer acquisition costs increased by 40%, and getting and keeping users is becoming more challenging, too.

While third-party cookies are still around, Google has made them opt-in only, and few online users consent to being willfully tracked, making easy ad targeting a thing of the past. Marketers must also compete with increasingly stringent consumer privacy laws to get the data they deserve. This means brands must spend more on attracting customers, impacting their overall marketing return on investment (ROI).

Although there are many hoops to jump through, you don't have to spend more to keep leads flowing through your conversion funnel. With digital analytics platforms like Quantum Metric, along with other new technologies and strategies, you can squeeze more out of every marketing dollar spent.

Start with conversion rate tracking and optimization — two methods that rely less on cookies and ads, and more on becoming among the most effective marketing strategies for top companies.

When you know how to calculate conversion rates and intentionally track conversions along the funnel, you'll be able to optimize each leg of the buyer's journey effectively. This article will cover the optimal conversion rate formula and best practices for tracking and optimizing conversions to improve marketing ROI.

What are conversion rates, and why do they matter?

The conversion rate reflects the percentage of users who take a desired action. It's among the most important marketing metrics to track and an essential KPI that helps measure the success of your team's marketing strategy.

For example, when visitors click through to your landing page, you might want them to download a white paper in exchange for their email address. This download is the conversion — the action you've set up for them to complete.

However, not everyone who enters your domain’s funnel will complete the actions you set up to move them from potential customers to leads and then buyers. Only some will convert, and that percentage of users who do is what marks your conversion rate and possible user base.

Calculating conversion rates and tracking your conversions over time is essential because this crucial metric tells you how effective your funnels are.

When your conversion rate increases, you know your funnels are working properly. On the other hand, if it goes down, you'll want to identify what's causing the friction and resolve it.

How conversion rates impact your bottom line.

Because the conversion rate indicates the percentage of users moving along your marketing funnels at the desired rate, this metric directly impacts your bottom line. More conversions mean more leads and more sales, and the reverse is also true.

Even more important, a higher rate means your marketing campaigns are working as planned, as users are following the exact actions your marketing strategies set out to create. In other words, getting a good conversion rate will increase your marketing ROI, meaning you'll get more results for the same input.

This is why your company should invest in developing an effective strategy for conversion rate optimization in addition to a standard marketing plan. Providing three to eight times the returns over time, CRO is one of the most important ways to improve ROI in 2025 and the future ahead.

Calculating conversion rates.

As of this year, average conversion rates across industries are around 2.9%, and anything near 10% or above is considered excellent in comparison.

While these are helpful background numbers, you can't start tracking your rate and optimizing your site for more conversions until you understand your benchmark.

What's a good conversion goal for your business depends on many factors, including the types of actions users should take, your audience, and your business niche. As such, you need to calculate conversion rate metrics for your business and then track them over time. That's how you can continually make conversion goals and use this metric to improve your marketing funnels.

The conversion rate formula.

The conversion rate formula is the number of conversions divided by the number of users. To find the percentage, multiply by 100.

Conversion rate = Total number of conversions / total number of users

Let's look at an example of the conversion rate formula in action to see how this works:

Say you had 15,000 visitors to your landing page last month, and 300 took the desired action — to fill out a simple form requesting a call back for service from your business. Using the formula, you discovered your month's conversion rate was 2%.

Conversion rate = 300 conversions/15,000 users = .02 x 100 = 2%

How to start tracking conversions.

Using the conversion rate formula is one thing, but tracking this key performance indicator requires more. You must also set up what conversions you want to track based on your priorities and then analyze your metrics over the same time period.

Here's how to get started:

1. Define your desired action.

First things first: What key action do you want users to take?

If your marketing campaign focuses on building brand awareness and generating more leads, you might look at the bottom and middle-of-the-funnel actions. If your primary marketing goal is to increase sales, you'll focus on top-of-the-funnel conversion rate metrics.

1. Top-of-the-funnel (ToFu) focuses on awareness. Conversions include email open rates and website visitors who sign up for your newsletter. This is how and where people are exploring your brand.
2. Middle-of-the-funnel (MoFu) focuses on evaluation. Conversions include downloading your white paper or ebooks to learn more about what your brand offers customers. Users are in the consideration stage and willing to dive deeper into your products and services.
3. Bottom-of-the-funnel (BoFu) focuses on conversion. Conversions include making a purchase or registering for your event. At this point, users are ready to decide and become customers.

Track conversions at all three marketing funnel stages to gain an even clearer (and bigger) picture. Doing so can help your team understand how to increase conversions. Some outcomes might be optimizing targeting, improving user experience, increasing personalization, and identifying areas for improvement.

2. Measure your users.

The next step is defining your process for measuring users.

For example, you can use Google Analytics to measure visitors to a page from an ad to track the conversion rate for that ad. You'd compare the total number of conversions (the number of people who clicked through from the ad) to the total number of users (the total number of people who saw the ad).

You can also use a more advanced digital analytics platform like Quantum Metric to break down data by page elements. Our sophisticated page analytics tools can show you the conversion rate of specific on-page elements like where users are most engaged on your page, and where there are opportunities to reduce friction.

3. Calculate conversion rate metrics.

Calculate the conversion rate using the formula. This manual approach is acceptable if you only focus on a few interaction points. So if you want to see the conversion rate for your landing page, you can look at your website traffic and conversion numbers and plug them into the formula.

If you're trying to understand the bigger picture and track conversions throughout your funnel, you might want to use software that tracks conversion rate metrics and handles your conversion rate formula calculations. This will save time and reduce the risk of making manual errors.

4. Track average conversion rates.

Once you calculate the rate, you need context to derive meaning. You can look at average rates for your industry, but that won't give you the insight to make informed decisions about your business's individual marketing scheme.

That's where tracking comes in — you can track your conversion rates over time for the channels or interaction points you decide to prioritize. Then, your team can make changes to improve the conversion rate and monitor to see if you're moving in the right direction.

When rates go up, you know you're optimizing your funnel and getting more out of your marketing spend. When rates go down, you know you need to devote resources to optimizing areas in your conversion funnel where there's friction. This is the foundational practice of conversion rate optimization.

Conversion tracking best practices.

Tracking is arguably more important than calculating because you're analyzing the results of your conversion funnel optimization efforts.

So what can you do to ensure you're tracking conversions effectively? Here are the best practices every marketer should know:

1. Prioritize conversion metrics that matter.

You can get lost in the numbers if you track too many data points. Instead, think about what conversion actions you want to understand right now, keeping in mind that your priorities can change as you hit each conversion goal. Some of the main types you might track could include:

1. Form conversions: How many users fill out and submit forms? This conversion rate metric reveals if the user experience (UX) design encourages users to engage with forms. It also shows how much interest there is in your offering, whether it's a demo, a call-back, a newsletter, or something else.
2. CTA conversions: What percentage of users click on your call to action? You would track CTA conversions to understand how compelling your CTAs are and determine how effectively your page design or content drives users to hit those CTA buttons.
3. Website conversion rates: What percentage of website visitors convert to customers? This is an overall, big-picture metric that tells you if your website effectively generates sales.
4. Mobile conversion rates: How many mobile visitors become customers? This is another key metric, as mobile users account for 66% of all online traffic, making them a vital audience to track and consider when shaping your user experience.

2. Segment your conversion rate data by buyer journey stage.

Do you want to optimize bottom, middle, or top-of-the-funnel interactions? Or all of them?

Segment your conversion tracking by the buyer journey stage. This will allow you to examine the effectiveness of the different funnel stages and give you insight into where friction might exist, so you can focus on and optimize that area.

For example, if your conversion rates are high at the top of the funnel but you know you should be getting more leads at the bottom, it makes sense to dive into your analytics and explore how you can improve the bottom-of-the-funnel UX.

When you segment your conversion rate data, you can make more sense of these metrics and make better-informed optimization decisions. Simplify and speed up segmentation with help from Quantum Metric.

3. Use the right tools.

You need to use the right tools to track higher conversion rates accurately.

Google Analytics is one of the most popular tools for tracking website performance, including conversion rates. But it has limitations. You can't see conversion rate metrics for granular on-page activity. Also, you don't get the same context as you would with an in-depth analytics tool.

The good news is that other, more in-depth tools are available today. Quantum Metric, for example, lets you dig deeper into customer data for key insights into user behavior. Its custom dashboards will also help convey a clear relationship between web page top-level engagement and business outcomes.

Through Quantum Metric's latest features, such as targeted alerts, AI-generated session summaries, and expanded dashboard views, you can improve clarity in your digital analytics strategy and boost conversions. This also includes our platform's top-tier scale, security, and support without the sometimes inevitable bottlenecks that come with a customer-centric approach.

The latest conversion rate optimization trends.

Once your company knows how to track conversion rates, the next step should be developing an effective digital marketing strategy that ensures you optimize them. Here are some key conversion rate optimization trends to consider for your marketing strategy:

Continuous improvement through A/B testing.

One of the most important trends in CRO is the growing focus on continuous A/B testing. Matched with effective conversion rate tracking, experimenting with different page layouts, copy, and promotional offers allows you to produce new iterations of your site that are more likely to increase conversions.

Even a small improvement of 1% from one enhancement through testing can compound over time to produce immense returns. By following best practices, your team's marketing efforts will always be worthwhile.

Focus on micro-conversion rate optimization.

Another key CRO trend is focusing on more than just end-goal conversions, such as form submissions and CTA clicks. In 2025, a key marketing strategy is to also consider engagement metrics like scroll depths, add-to-cart rates, and video plays — what are known as "micro-conversions."

You can easily track these using advanced digital analytics platforms like Quantum Metric. Our precise session replays and heatmap analysis tools allow your team to follow user journeys and discover valuable insights into their behavior.

Tracking these types of conversions can thus reveal previously unnoticed customer behavior on your site. Optimizing micro-conversions then improves your overall user experience, resulting in higher rates in your primary conversions.

Implement AI-enabled personalization.

Finally, the latest trend among CRO strategies is the use of machine learning and AI in marketing to create personalized customer experiences. Site elements like AI-based chatbots, product recommendations, and dynamic landing page content greatly improve customer engagement, raising the chances of more customers.

Of course, personalization in marketing can't entirely be run by AI. Through careful attention to detail and humanization, you can ensure AI-generated responses and call-to-action messages feel genuine and empathetic, avoiding any potential concerns of privacy invasion. By doing so, you can make truly memorable user experiences that will vastly increase conversions.

With Quantum Metric, you'll never lose sight of the customer.

Calculating, tracking, and optimizing your conversion rate metrics is vital, as this KPI highlights how high your ROI is. Through tracking and conversion rate optimization, you'll also understand what's attracting your customers, where there's friction, and what you can do to improve CX and drive more conversions.

You have the information to make your conversion funnels more impactful. But you need robust digital analytics to uncover precious insights. That's where the all-in-one team at Quantum Metric comes in.

Our digital experience analytics platform enables you to take your conversion rate optimization to the next level. Discover our AI digital analytics features today and learn how our advanced tools will ensure you never lose your customers' “site” again.