What Is Conversion Rate?
Conversion rate is the share of people who complete a wanted action on your website or app, like buying, signing up, or filling a form, out of all visitors.
Definition
Conversion rate is a percentage that shows how many people take a goal action compared to everyone who could have taken it.
Conversion rate formula: (Number of conversions ÷ Total number of visitors) × 100.
Why Conversion Rate Matters
A higher conversion rate means you get more sales, leads, or sign ups from the same number of visitors. This saves money and makes your marketing work better.
It also shows if your pages, ads, and messages are clear and helpful or if they need changes.
How Conversion Rate Works
First, you choose a goal, such as a sale, email sign up, or download. Then you count how many people reach this goal in a set time.
You divide this number by the total visitors in that time and turn it into a percentage. Small changes to words, design, images, or buttons can raise or lower the conversion rate.
Conversion Rate vs Related Terms
Click through rate measures how many people click a link out of everyone who sees it. Conversion rate measures how many people complete a goal after they click and visit.
Bounce rate shows how many people leave after seeing one page. Conversion rate shows how many stay and take action.
Example of Conversion Rate
Imagine an online shop that gets 1,000 visitors in one week. In that week, 50 people buy something.
Conversion rate = 50 ÷ 1,000 × 100 = 5 percent. This means 5 out of every 100 visitors became customers.
FAQs
What is a good conversion rate? A good conversion rate depends on your industry and traffic. Many websites aim for 2 to 5 percent or more, but each site is different.
How can I improve my conversion rate? You can test new headlines, make pages load faster, use clear calls to action, show reviews and trust badges, and keep forms short and simple.
What counts as a conversion? A conversion can be any important action, such as a sale, email sign up, form submit, app install, or clicking a key button like Add to cart.
