Sales Dictionary
Conversion Rate
Definition
The percentage of potential customers who take a specific desired action.
Deep Dive
Conversion Rate is a critical metric in business and marketing, representing the percentage of users or prospects who complete a specific, desired action out of the total number of people who had the opportunity to do so. This "desired action," known as a conversion, can vary widely depending on the business objective, ranging from making a purchase, signing up for a newsletter, downloading an e-book, filling out a contact form, or even simply clicking a specific link. It's a direct indicator of the effectiveness of a website, advertisement, landing page, or sales funnel in prompting users to take the next intended step.
Examples & Use Cases
- 1An e-commerce site sees 50 purchases from 1,000 visitors, resulting in a 5% conversion rate.
- 2A landing page receives 200 visitors and 20 sign-ups for a webinar, achieving a 10% conversion rate.
- 3An email campaign is opened by 500 recipients, and 100 click through to a product page, yielding a 20% click-through conversion rate.
Related Terms
Call to Action (CTA)A/B TestingFunnel Optimization