Calculate the Sway Rate
The common "Conversion Rate" (Purchases / Visits) or "Real Conversion Rate" (Unique Purchases / Unique Visits) does not tell the whole story behind your e-commerce metrics. That is why you need to calculate the Sway Rate. Once you have this, you will see it correlates much closer to your sales volume than the overall conversion rate.
The Sway Rate Formula is below:
(Unique Cart View / Q-Pages) *(Number of Orders / Checkout Starts)
What is a Q-Page? It is a page that shows the user is qualified to be counted as a prospective buyer on your site. For most product focused e-commerce sites, a Product Page is a Q-Page. Here is an example:
Take the rate of the Qualified people your site got people to the Shopping Cart.
900 Unique Cart Views / 3250 Product Pages Views (Q-Pages) = 0.28
Then take the rate of people who added to their shopping cart, and actually ordered.
240 Orders / 500 Checkout Starts = 0.48
Now, multiply them against each other (rate of those who got to the cart and got through it).
0.28 * 0.48 = 0.1344 (around 13.5%).
Now take this formula and crunch the numbers on your own website metrics.
This should allow you to better measure how well you are persuading those who are more ready to buy. Don't forget, you may need to work on getting more people to "Q-Pages", especially if your bounce rate is high, but once visitors on are you q-pages, this helps you keep a better score of how you convert them.
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