Marketing 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 who complete a desired action out of the total number of visitors or opportunities. This "desired action," known as a conversion, can vary widely depending on the business objective, ranging from making a purchase, filling out a form, signing up for a newsletter, downloading a resource, or requesting a demo. It provides a direct measure of the effectiveness of a website, landing page, or marketing campaign in achieving its specific goals.
Examples & Use Cases
- 1An e-commerce website receives 1,000 visitors, and 20 of them make a purchase, resulting in a 2% conversion rate.
- 2Out of 500 people who clicked on a landing page for an e-book, 150 filled out the form to download it, achieving a 30% conversion rate.
- 3A SaaS company's free trial page sees 100 sign-ups from 2,000 visitors, giving it a 5% conversion rate for trials.
Related Terms
Click-Through Rate (CTR)Bounce RateGoal Completion