Understanding conversion rates

This percentage relates to the total number of sales divided by the total number of clicks over a given time period. The better your site converts incoming traffic to actual transactions the higher the Conversion Rate.

For some affiliates, conversion rate can be the single most important factor in deciding to what extent they promote a merchant. This is because if the consumer does not convert then they will not be paid. So regardless of the size of commission an affiliate could receive, the conversion rate can be a deciding factor, which is especially true of comparison type affiliates.

The conversion rate encompasses two figures. On one hand, the click-through rate (CTR) of traffic from an affiliates site to your own; on the other, the on-site conversion (OSC) of that traffic once it has landed on your site. Once a visitor is on your site it is up to you to ensure they convert to purchase; your site’s usability, pricing, and the special offers available will all affect this. You might want to incentivise visitors with the use of promotional codes or the offer of free delivery; alternatively try providing deep-links or bespoke creative to affiliates so they can send traffic to the most appropriate part of your site. Try looking at your leading competitors’ sites to see what they are offering.

Cashback and reward sites will often convert traffic at a higher rate than other affiliate types due to the incentive such sites offer (for example, cashback or points).