Conversion rate
Definition
Conversion rate is the percentage of users who complete a desired action after interacting with a website, advertisement, or campaign. A conversion may include purchasing a product, filling out a form, subscribing to a newsletter, or downloading an app. The metric reflects how effectively a business turns visitors or leads into customers.
Conversion rate is one of the most important indicators of marketing and sales performance. It measures the success of digital strategies, user experience, and overall campaign effectiveness.
Advanced
Conversion rate is calculated by dividing the number of conversions by the number of total visitors or interactions, then multiplying by 100. For example, if 100 users visit a page and 5 make a purchase, the conversion rate is 5 percent.
Advanced optimization involves analyzing traffic sources, user behavior, and funnel performance. Techniques such as A/B testing, personalization, retargeting, and improving landing page design are commonly applied to boost conversions. In e-commerce and SaaS, conversion rate optimization (CRO) is an entire discipline dedicated to increasing efficiency of digital customer journeys.
Why it matters
Use cases
Metrics
Issues
Example
A retail company redesigned its checkout process to reduce friction. By simplifying form fields and adding multiple payment options, conversion rates increased from 2.5 percent to 4 percent, significantly boosting revenue without increasing traffic.