What is conversion rate and how do you calculate it? A formula, a worked example in baht, a table of what an online shop can count as a conversion, ways to raise it step by step, and why your own baseline beats someone else's average.
Conversion rate is the share of people who do what your shop wants, such as order, message you or sign up, out of everyone who arrived, shown as a percentage. If 100 people view a product page and 3 buy, the conversion rate is 3%. This article explains the formula, a worked example in baht and how to use the number, without quoting averages whose source we cannot check.
Key takeaways
- Conversion rate = people who completed the goal ÷ people who arrived × 100
- Decide what counts as a conversion first, an order, a chat or a sign-up, and count it the same way every time
- Other shops' averages are hard to compare; compare with your own figure from last month
- Change one thing at a time and measure again to learn what really worked
What is conversion rate
A conversion is when a visitor becomes someone who does what the shop hoped for. The most common case is a purchase, but it can also be a chat, a saved product or a filled form. The shop chooses what to count.
Conversion rate tells you what percentage of all people reached that end point. It answers a question online sellers often face: many people arrive but few buy, so is the problem the audience or the shop page?
Conversion rate is one of the core numbers in online marketing. See the other numbers and terms in What Digital Marketing Is.
The conversion rate formula
The formula is one line and works for any goal you can count.
Conversion rate (%) = people who completed the goal ÷ all people who arrived × 100
Two choices come before the maths. The first is the numerator, what counts as a conversion. The second is the denominator, where people who arrived is counted from, such as product page visitors, people who tapped a link in a post, or people who already messaged. A different denominator gives a very different number.
WarningKeep the denominator the same
If this month you divide by product page visitors and next month by post views, the two months cannot be compared. Write down which denominator the shop uses and use it every time.
A worked example in baht (invented shop)
The numbers here are an invented example to show the method. They are not real results and not a figure to expect.
ExampleInvented example
An invented shop called Baan Pha Fai Sai Lom sells cotton clothing through Instagram. Last month 800 people tapped the profile link to a product page, and 24 orders were paid. Conversion rate = 24 ÷ 800 × 100 = 3%. Average order 350 baht, so sales are 24 × 350 = 8,400 baht.
Now see what the number lets you decide. This invented shop did two things: it made the product photos show fabric size clearly, and it added a short answer about sizes on the product page. The next month 800 people again viewed the product page, but there were 32 orders.
Before and after the page change (invented numbers)
Scroll the table sideways to see the remaining columns
Notice that the shop paid nothing extra to bring more people in, yet sales rose because the same audience bought more. That is why online sellers read conversion rate next to the number of visitors, not only views or followers.
If the shop runs ads you can go one step further. Say the first month's ad budget was 1,200 baht for 24 orders, so ad cost per order is 1,200 ÷ 24 = 50 baht. With the same budget and 32 orders, it falls to 37.5 baht per order. For the full return calculation see read social analytics to decide where to invest.
What can an online shop count as a conversion
Conversion does not always mean a purchase. A shop that sells higher-priced items or needs a conversation first can count an earlier step. This table helps choose.
Examples of what an online shop can count
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Shops that sell mainly through chat often count chat started first, then count the rate of chats that end in a purchase as a second number. That shows where things get stuck: people do not message, or they message and do not buy.
To look at the whole path from social to a marketplace order, read from social to marketplace: getting people to the order, which breaks it into steps and what each step can measure.
What conversion rate counts as good
This is the most searched question and the hardest to answer directly, because each shop's number depends on product, price, where people come from and how the denominator is counted. Averages posted around the web are often counted differently from one source to the next.
So we do not offer an average as the figure your shop should reach. If you meet an average somewhere, check what they counted as a conversion and what they divided by before comparing.
TipCompare with your own number
Use last month's figure as the baseline and see whether this month is up or down, split by where people came from, such as posts, ads or the bio link. These numbers are comparable because they are counted the same way.
Many things make numbers differ between shops. This table shows why comparing directly with another shop risks a wrong conclusion.
Why you cannot compare directly with other shops
Scroll the table sideways to see the remaining columns
How to raise conversion rate one step at a time
The approach that works is to change one thing, then measure again over the same period with the same denominator. If you change several at once you cannot tell which one moved the number. The checklist below starts with fixes that are easy and often matter most.
Checklist to raise conversion one step at a time
Done 0/7
The last item is often missed. However good the shop page is, if the visitors are not people who want the product, the number will not move. Look at which channel real buyers came from and put more weight there.
If the shop uses boosted posts to find people, the checklist before boosting a post helps make sure the money brings the right audience.
Numbers to read alongside conversion rate
One conversion rate alone does not tell the whole story. Read these three with it.
Number of visitors A high rate with only 10 visitors still adds up to little, and a good-looking rate can come from a very small sample
Average order value The same rate with a higher order value means more revenue
Cost per order If there is ad spend, check whether the cost of one order still fits the profit per item
If you are new to reading social numbers, the basic metric of engagement is explained in what is engagement, and the difference between reach and impressions is in reach, impressions and views compared, which helps you pick the right denominator.
How the same numbers get misread
The same figures can be misread in several ways. Three are common.
Looking at the percentage and not the count A shop with 20 visitors and 2 buyers gets 10%, but one more buyer makes it 15%. The figure swings hard on a small sample, so wait for several weeks of data
Changing the definition midway Switching from counting orders to counting chats makes the number jump without the shop getting better
Comparing marketplace numbers with social numbers The two channels bring different people, so compare within one channel
NoteAbout the data
Visitor and order numbers come from the stats tools of the platform your shop uses, such as Instagram Insights or the marketplace seller centre. Menu names and positions can change, so check the latest app.
Is there a service that helps before you start measuring
A new shop that wants its account to look less empty before it starts making content can consider Instafollow's follower service. It does not guarantee sales, reach or conversion rate, and does not replace a clear product page and good content. See Instagram follower service or the free trial, available only for services that offer one.
ArticleReading Your Social Analytics to Decide Where to Invest, Not Where You Feel LikeA limited budget across many channels: let analytics make the call. Which numbers to check, when, and how to decide so every baht goes further.If the shop sends people from social to close the sale on a marketplace:
ArticleSelling From Social: Chat, LINE OA or Marketplace?Pick one of 4 routes from social media to a sale: chat, LINE OA, a marketplace or TikTok Shop. 4 deciding questions, a comparison table, 3 numbers to track and 3 invented example shops.And the services for your shop's Instagram account:
ServiceBuy Instagram Followers, Likes & Reels ViewsGrow your Instagram with followers, likes, Reels views and comments. See the price per 1,000 up front, pay by PromptPay, and never share your password.Questions about conversion rate
What is conversion rate
It is the share of people who do what the shop wants, such as buy or message, out of everyone who arrived, shown as a percentage.
How do you calculate conversion rate
Divide the number of people who completed the goal by the number of people who arrived, then multiply by 100. For example, 24 buyers out of 800 visitors is 3%.
What is a good conversion rate
No single figure fits every shop. It depends on product, price, where people come from and how it is counted. Compare with your own figure from last month, split by channel.
How is conversion different from engagement
Engagement is interaction with a post, such as likes and comments. Conversion is people reaching your shop's goal, such as ordering. They are related, but high engagement does not mean sales.
How many visitors do I need before the number means anything
There is no fixed threshold, but with only a few dozen visitors the figure swings hard. Look at several weeks together before saying it improved or worsened.
Will more followers raise my conversion rate
Not necessarily. More followers can add some early trust, but conversion mostly depends on the product page, price and chat replies. No service can guarantee sales.
Summary
Conversion rate is the people who completed the goal divided by everyone who arrived. Define it clearly, count it the same way every time, compare with your own shop's figure and change one thing at a time. That shows where your money and time should go.
