Conversion Rate
Conversion rate is the percentage of visitors who complete a specific goal action, such as making a purchase, signing up, or clicking. It measures how effectively marketing or user experience turns visitors into customers or users.
How it works
In business and data analytics, conversion rate is a core metric for evaluating the effectiveness of a website, ad campaign, or user flow. By analyzing conversion rates, businesses can identify bottlenecks and optimize their strategies, acquiring more customers at lower cost or achieving other business goals.
Examples
- 1.An e-commerce site calculates the share of visitors who added products to their cart out of all visitors.
- 2.A SaaS product calculates the share of users who sign up for a free trial out of all users who visit its landing page.
- 3.For a marketing email, the share of recipients who clicked a link in the email out of everyone who received it.