E-Commerce Dictionary
Conversion Rate
Definition
The percentage of visitors to a website that complete a desired goal (a conversion) out of the total number of visitors.
Deep Dive
The Conversion Rate is a critical metric that quantifies the effectiveness of a website or marketing campaign by measuring the percentage of visitors who complete a desired action, known as a "conversion." This action could range from making a purchase to signing up for a newsletter, downloading an ebook, filling out a contact form, or requesting a demo. It serves as a key performance indicator (KPI) that reflects how well a website or digital asset is achieving its intended business objectives, providing insight into user engagement and the success of calls-to-action.
Examples & Use Cases
- 1An e-commerce site where 2 out of 100 visitors make a purchase (2% conversion rate)
- 2A SaaS company's landing page where 50 out of 1,000 visitors sign up for a free trial (5% conversion rate)
Related Terms
Key Performance Indicator (KPI)Lead GenerationSales Funnel