Business Dictionary
Conversion Rate
Definition
The percentage of users who take a desired action.
Deep Dive
Conversion Rate is a key performance indicator (KPI) that measures the percentage of users or visitors who complete a desired action out of the total number of users or visitors. This "desired action," or conversion, can vary widely depending on the business goal; it could be making a purchase, signing up for a newsletter, filling out a form, downloading an app, clicking a link, or requesting a demo. Conversion rate is a powerful metric for evaluating the effectiveness of websites, marketing campaigns, landing pages, and sales processes.
Examples & Use Cases
- 15% of website visitors making a purchase after landing on a product page
- 220% of email recipients clicking a link within a marketing newsletter
- 315% of users who download a free trial of software eventually converting to a paid subscription.
Related Terms
CTA (Call to Action)A/B TestingUser Experience (UX)