How much conversion rate does PayPal charge

Conversion rate

Conversion rate: brief explanation

The conversion rate, also called conversion rate, describes the percentage frequency with which visitors to a website perform a specified action. Frequent conversion goals in online marketing or e-commerce are, for example, buying products from an online shop, providing contact details to generate leads, or taking out a subscription.

Detailed explanation:

Marketing departments use the conversion rate to measure the percentage of conversions on a company website or in a mobile app. Conversions are specific goals that a company defines. They usually subdivide individual phases in a customer's purchasing process on the way to the company's service or product. A company can define calling up a website as a conversion as well as defining the final purchase of a product.

The conversion rate describes the percentage of users who carried out the previously defined action (conversion) in a certain purchase process.

Example: A website offers an e-book for free download. In return for the download, the website operator would like the prospective customer's e-mail address so that he can continue to inform him about his content in the future. The conversion consists in making the website visitor interested in the content and the contact of the company.

The company measures how many visitors come to the landing page on which the e-book is offered and how many contact records are actually received. In this case, the conversion rate is calculated as follows:

Types of conversions

The so-called conversion funnel of a company maps the typical sequence of conversions in the buying process of a user on a website. Different types of conversion goals can be found in this funnel. The most common are:

  • Click / Traffic: Traffic describes the number of users who visit a website. User clicks are usually differentiated according to their origin: for example SEO, SEA or referrals. Increasing traffic is a common conversion goal, with the quality of the traffic often being a far more important factor. Because the more targeted a company addresses the right users, the higher the probability that they will not leave the conversion funnel again. Traffic can be increased above all with suitable advertising, for example with Google AdWords, good search engine optimization and with the help of good content.

  • Interested party: A website visitor who shows interest in a company's products or services is already one step further than a user who only visits a page to read an article and then leaves. Interested parties can be identified, for example, based on the length of stay or the number of pages visited. Good usability, a cleverly structured page and, above all, good and helpful content help to achieve the conversion goal of turning the visitor into an interested party.

  • Lead: A prospect who gives their contact details to the company becomes a lead. Interested parties provide their data, for example, in exchange for a download, to register for the company newsletter or simply because of a request for an offer. Marketing or sales can then get in touch with these users in order to achieve further conversion goals. In order to generate leads, you need interesting and high-quality content or a good product.

  • Registration: A prospect or a lead who is convinced of the products or the service of a platform or who would like to test them registers with their own account. The user is already so far advanced in his purchase intention that he is considering a company as the supplier of his product. Good usability, clearly formulated content and a good website structure help to get interested parties to register.

  • Purchase: When a user finally purchases a product or service after opening an account, they become a customer. The sale or sale is the most important and final conversion goal for many companies, even if it can be defined in different ways (like most other goals too). From the shopping cart, through the payment methods offered, to the shipping conditions: In the actual buying process, many factors can be optimized that help turn a prospect into a customer. At the same time, the risk of a bounce is relatively high here, as the customer usually comes to the point where he has to enter sensitive data such as address or even account details.

Influence on the conversion rate

Not every user has to go through every step of the conversion funnel. Some users skip steps, others get out beforehand or join later. It is the company's job to use various measures to get the user into the individual stages of the conversion funnel or to accompany them through the funnel as effectively as possible.

Many factors influence how well the conversion works in the individual steps and how high the conversion rate is. The series of influencing factors can basically be divided into uncontrollable and controllable influences.

To the uncontrollable factors include seasonal or weather-related fluctuations. For example, the marketing department can only react to the annual summer slump to a small extent and only optimize conversion here to a limited extent. Legislation or political influences can hardly be controlled by individual companies.

The controllable factors however, they are those that a company can influence. Small changes on a website or in the buying process can often bring about major changes in customer behavior. The Usability the site, a clear one structure and also the matching ones Content are important conversion drivers. Technical shortcomings a website, in turn, can have a negative impact on the conversion rate. Other factors include:

  • the design of the website
  • the product range
  • Testimonials and trust seals (elements that inspire confidence)
  • the prices
  • Pictures and videos

Testing and conversion optimization

Sensible tracking and, above all, effective testing are part of the basics of conversion optimization. Usability specialists test everything - from colors and structures to content on websites and in online shops.

Marketing experts put forward a hypothesis to improve conversion. You test this guess, for example by using different versions of a website, and measure the results. Based on their measured and tested data, they optimize their applications and websites in order to test again afterwards. Conversion optimization is therefore an iterative process that serves as the basis for constant improvement.

Measure the conversion rate

Measuring the conversion rate is often a major challenge for website owners. In order to be able to correctly understand the actions and conversions of the customers, a functioning tracking must be implemented, the correct goals defined and finally the data also interpreted correctly.

As a rule, users are tracked with the help of cookies, small snippets of code that are stored on the computer of the visitor to a website and thus make them recognizable. However, there are many other tools that can record user behavior in a variety of ways. Website operators must consider data protection guidelines every time they measure and record user data. For example, in Germany in particular, data may not be recorded, stored or evaluated at will.

In principle, conversions can be measured and expressed in numbers with tools such as Google Analytics. Heat mapping software such as CrazyEgg records where users click and how often and thus helps with conversion optimization. Tools like Mouseflow also show where there is optimization potential of a page by recording the user's screen and thus making problems in the usability visible.

Many software providers have specialized in testing. The Visual Website Optimizer, for example, is a tool for testing websites against one another and for optimizing them. Unbounce is a helpful tool for building different landing pages quickly and easily and testing them against one another.


The conversion rate describes the percentage of a goal achieved in online marketing. Conversion goals are diverse and range from increasing website traffic to generating regular customers. The individual goals and their typical order are mapped in a conversion funnel.

Many factors influence the conversion rate; some can influence website owners, and others cannot. However, in order to be able to optimize the website and the conversion rate at all, effective tracking and measurement is necessary and precise and structured testing is recommended.

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