Final answer:
The industry standard conversion rate is calculated by dividing the number of conversions by the total number of visitors and multiplying by 100. In the example of 5,000 visitors with 100 conversions, the conversion rate would be 2%.
Step-by-step explanation:
To calculate the industry standard conversion rate with 5,000 webpage visitors, one must understand what a conversion rate is. A conversion rate is the percentage of visitors to a website who complete a desired goal (a conversion) out of the total number of visitors. Calculating the rate involves dividing the number of conversions by the total number of visitors and then multiplying by 100 to get a percentage.
For instance, if an internet marketing company aims to determine the conversion rate of an ad campaign where out of 5,000 visitors, 100 visitors clicked on the ads, then the conversion rate would be calculated as follows:
Conversion Rate = (Number of Conversions / Total Visitors) × 100
Conversion Rate = (100 / 5,000) × 100 = 2%
This means that the conversion rate is 2% for the given scenario. To understand the effectiveness of their campaign, companies often compare this figure to industry benchmarks.